Facts

http://www.associatedcontent.com/article/450968/has_globalization_hurt_the_american.html

• John Kerry has made headlines with his contention that companies who move their operations overseas should face special taxes. In a speech entitled “A Jobs-First Economic Plan” given in Detroit, Michigan last March, Kerry remarked:

We now have a tax code that does more to reward companies for moving overseas than it does to reward them for creating jobs here in America. So if I am elected President, I will fight for the most sweeping international tax law reform in forty years — a plan to replace tax incentives to take jobs offshore with new incentives for job creation on our own shores. (www.pbs.org)

·        Loss of jobs reduces the tax base, creates high unemployment benefit costs, and raises the cost of government retraining programs. ( Rory L. Terry, CNN, The Dobbs Report)

• Of the top fifteen U.S. exports to China, three are “ waste and scrap”; four are raw materials or agricultural products; six are parts, some of which will presumably be assembled in China for later export; and only two are clearly finished assembled products; and only two are clearly finished assembled products (aircraft and computers)…. And these are going with 70 % of the Boeing 7E7 being offshored.( http://www.aflcio.org/issues/jobseconomy/)

• The United States has a comparative influence in leading trade, fiscal policy, and environmental organizational control.

 

A programmer in the United States would earn about $80,000 a year on average, compared with $20,000 or less in India. But analysts say the actual cost savings are not proportionate. http://seattlepi.nwsource.com/business/153634_offshorejobs23.html

Seattle-area companies with operations overseas or partnerships with offshore outsourcing companies:

• Amazon.com: Signed agreement with India-based Daksh in August 2000 to conduct customer support services.
• AT&T Wireless: Working with India-based Wipro and Tata Consultancy Services to outsource information technology work overseas.
• Aventail: Announced in August that it would open a research and development center in Bangalore, India.
• Boeing: The wings, fuselage and other parts of the company’s 7E7 jetliner will be built overseas.
• Click2Learn: Eliminated positions in Bellevue and Rochester, N.Y., and moved the work to Hyderabad, India. Employed about 75 people in India in April.
• Microsoft: Announced plans to triple the size of its Hyderabad, India, operation to 500 people by 2005. In April, the company opened a customer service operation in Bangalore, India, with plans to hire 150 people.
• Talisma: Bulk of the Kirkland software company’s work force is located in Bangalore, India.
• Washington Mutual: Recently expanded a pilot project to outsource some computer programming to India. About 30 people are working for contractors Covansys and Syntel.
• Watchmark: Cut 60 positions in April as it shifted software development and testing to India.

Wall Street jobs paying $80,000 and up are getting easier to transfer. http://www.businessweek.com/@@@2u*K4YQvCGgYhUA/magazine/content/03_05/b3818001.htm

In a recent PowerPoint presentation, Microsoft Corp. (MSFT ) Senior Vice-President Brian Valentine–the No. 2 exec in the company’s Windows unit–urged managers to “pick something to move offshore today.” In India, said the briefing, you can get “quality work at 50% to 60% of the cost. That’s two heads for the price of one.”