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University of California Hires India-Based IT Outsourcer, Lays Off Tech Workers (computerworld.com)

dcblogs writes from a report via Computerworld: The University of California is laying off a group of IT workers at its San Francisco campus as part of a plan to move work offshore. Laying off IT workers as part of a shift to offshore is somewhere between rare and unheard-of in the public sector. The layoffs will happen at the end of February, but before the final day arrives the IT employees expect to train foreign replacements from India-based IT services firm HCL. The firm is working under a university contract valued at $50 million over five years. This layoff affects 17% of UCSF's total IT staff, broken down this way: 49 IT permanent employees will lose their jobs, along with 12 contract employees and 18 vendor contractors. This number also includes 18 vacant IT positions that won't be filled, according to the university. Governments and publicly supported institutions, such as UC, have contracted with offshore outsourcers, but usually it's for new IT work or to supplement an existing project. The HCL contract with UCSF can be used by other UC campuses, which means the layoffs may expand across its 10 campuses. HCL is a top user of H-1B visa workers.

15 of 618 comments (clear)

  1. Well, what do you expect? by Anonymous Coward · · Score: 5, Informative

    You've let the worst human beings rule this world since... a long time now. You expect *good* news to just appear without doing anything about it? This nightmare will continue until a good person (if such a thing exists) decides to put a stop to it.

  2. Re:I'm so mad, I almost want to vote for by Austerity+Empowers · · Score: 3, Informative

    But hillary is paid by the people who keep the H1B machine running.

    They both suck, let's not pretend.

  3. Re: I'm so mad, I almost want to vote for by Anonymous Coward · · Score: 5, Informative

    Trump is very much against this. Hillary Clinton is an endorser of the H1B program. I'm a Canadian and seems I know more about this than you do. Follow some of Trump's speeches more closely and listen for yourself.

  4. Re:Completely wrong.... by Anonymous Coward · · Score: 5, Informative

    Currently a UCSF student. Many people don't realize this but UCSF is exclusively a medical professional school with no undergraduate degrees. Students here are a minority compared to the system of hospitals run by professionals. https://www.ucsf.edu/about/economic-impact-report/employment-economic-stimulus

  5. He's already flipped on that by Anonymous Coward · · Score: 3, Informative

    I wouldn't hold out much hope. He two-faced and both of them are fake orange. He's already flipped to supporting H1b visas already:

    http://www.businessinsider.com/donald-trump-h1b-visas-gop-debate-immigration-2016-3

    Kelly: "Mr. Trump, your campaign website to this day argues that more visas for highly skilled workers would, quote, "decimate American workers." However, at the CNBC debate, you spoke enthusiastically in favor of these visas. So which is it? "

    Trump: "I'm changing. I'm changing. We need highly skilled people in this country," Trump said. "And if we can't do it, we'll get them in....And one of the biggest problems we have is people go to the best colleges ... as soon as they're finished, they get shoved out. They want to stay in this country. They want to stay here desperately. They're not able to stay here. For that purpose, we absolutely have to be able to keep the brainpower in this country. "

  6. San Francisco minimum wage heading to $15 by steveha · · Score: 3, Informative

    This was likely a factor in the decision: the minimum wage is $13/hour and will be $15/hour by 2018.

    http://www.nbcbayarea.com/news/local/Minimum-Wage-Jumps-to-13-Per-Hour-in-San-Francisco-385257511.html

    When something is more expensive, less of it gets bought. When it costs more to hire people, jobs start to go away.

    --
    lf(1): it's like ls(1) but sorts filenames by extension, tersely
  7. Re:they should be teching real skills not outsourc by Anonymous Coward · · Score: 4, Informative

    Capitalism is NOT a system of governance nor is it a form or measure of patriotism, regardless of how one may have been socially engineered to believe otherwise.

  8. Re:Right, university labor is expensive. by lgw · · Score: 3, Informative

    It's a medical school - they don't have a Computer Science department.

    --
    Socialism: a lie told by totalitarians and believed by fools.
  9. Re: Completely wrong.... by WarJolt · · Score: 4, Informative

    Tuition for public universities are no where near 100k in California.
    For undergraduate non resident students is somewhere between 35k-40k. It's actually cheaper for non-resident grad students at ucsb.

    http://www.finaid.ucsb.edu/cos...

    UCSF is also significantly cheager than you're suggesting.

    https://finaid.ucsf.edu/newly-...

  10. Re:they should be teching real skills not outsourc by Afty0r · · Score: 3, Informative

    Real capitalism is asking the highest price the market will bear.

    That's not capitalism, it's free market economics.

  11. Re:Completely wrong.... by rworne · · Score: 5, Informative

    It isn't exactly working that way.

    No US workers are being laid off to hire H1B's. UCSF just cut their IT costs by going to an outside contractor and laying off a portion of their workforce - this is perfectly legal. And just so happens to be the way the system is rigged to get around laws protecting US workers. The contractor is able to supply IT workers at a lower cost per head than the existing employees because they use H1Bs that work for considerably less salary. UCSF benefits from less employee overhead, and the contracting firm gets paid the H1B's salary plus a bit more for profit.

    By inserting the contractor between the company and the H1B workers, companies are immune from H1B restrictions.

    Just about every H1B story that hits the news (SCE, Disney, etc.) use this method.

    --
    I tried every decent and legal way I could think of to resolve the issue w/the business before I rented the chicken suit
  12. Re: Completely wrong.... by vikingpower · · Score: 3, Informative

    As an example; technical education in India is about US$1000 per year (http://qz.com/445500/the-cost-of-getting-a-decent-education-in-india-is-now-staggering/).
    According to GP, that would be roughly 35 times cheaper at the very least.

    Technical "education", in India, is also hardly worth the ink written to spell those words.

    --
    Religous speak to God. Insane are spoken to by God. When all shut up, one can finally hear Shostakovich in peace
  13. Re:Completely wrong.... by RenderSeven · · Score: 3, Informative

    Think of how much money they could save if they outsourced their bean counters. Not to mention being awash in poetic justice.

  14. Re:Completely wrong.... by silentcoder · · Score: 3, Informative

    Like the Futurama episode where Hermes realizes the number one factor harming the company's performance is the ridiculous performance assessments he keeps doing and fires himself.

    --
    Unicode killed the ASCII-art *
  15. Re:they should be teching real skills not outsourc by 0100010001010011 · · Score: 3, Informative

    should they all be replaced with vocational school graduates?

    They are. My wife is a doctor and what a doctor does in 2016 has changed a lot from what they did in 1996, 1976, 1956, etc. You have nurse practitioners, registered nurses, all the way down to orderlies. You can get into the medical field with... voch tech level training. It's not because the work doesn't need to be done it's because the doctors need to work on other things and it's too expensive to pay them to do something someone with a tech degree can do.

    A doctor should know how to put in an IV but there's a good chance they'll suck at it. They don't do it anymore that job falls to other positions.

    We need fewer CS code architects and more Programmers that can actually build it.