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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.

19 of 618 comments (clear)

  1. Completely wrong.... by beheaderaswp · · Score: 5, Insightful

    This university should lose it's state and federal funding for doing something like this.

    Horrible insult to the USA, our students, and our educators.

    Terrible.

    --
    Another consultant who stuck it out.

    "We are the Priests, of the Temples of Syrinx..."
    1. Re:Completely wrong.... by fluffernutter · · Score: 5, Interesting

      No, because they are supposed to be committed to the welfare of students that pay good money to be there. Instead they choose to become part of the problem.

      --
      Laws are rules for the court, but merely a bottom bar to hit for life. Think beyond laws in your actions always.
    2. Re:Completely wrong.... by sg_oneill · · Score: 5, Insightful

      Nationalism is never a particularly rational argument.

      However there is a much more reasonable argument. Part of the reason we pay taxes is because they are good for the economy, as they keep money flowing in the economy and increases employment in the public sector thus increasing consumption by the working class (which in turn feeds businesses). But if that work goes offshore, then that tax is going offshore and stops being useful to the taxpayer from an economic perspective.

      --
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    3. 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

    4. Re:Completely wrong.... by stealth_finger · · Score: 5, Interesting

      UC is a system of campuses.

      What is stopping them from "outsourcing" their IT to another UC school which teaches system administration as part of it's curriculum. It seems like it would be a good opportunity to teach remote administration.

      What am I missing?

      See, you're looking at the problem with common sense, they're looking at with dollar signs.

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    5. 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
    6. Re:Completely wrong.... by psmoot · · Score: 5, Insightful

      Nationalism is a very rational argument.

      I respectfully disagree. The older I get, the fewer reasons I see to make a distinction between "us" and "them" other than selfishness.

      My ancestors fought and died to establish a government of, by, and for the people.

      Your ancestors and mine fought and died to protect our inalienable rights, that among these are life, liberty, and the pursuit of happiness, and that to protect these rights, we institute governments. Government is a means, not an end. But I split hairs...

      The purpose of the government is to serve the citizens of the country. The purpose of the economy is to serve the citizens, not the other way around.

      Yes, and in this case, the state government is serving the people by running a public university dedicated to teaching medical skills. Running an IT jobs program and spending more than necessary on IT staff does not serve the students or taxpayers of California. You may want more IT training and jobs in the US but that's not UCSF's mission or expertise. They quite reasonably decided to let someone else handle that and focus on their core job.

  2. 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.

  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:they should be teching real skills not outsourc by Kabukiwookie · · Score: 5, Insightful

    Also PASS the savings on

    Passing savings on? What kind of commie talk is this. Real capitalism is asking the highest price the market will bear.

    --
    The mountains of madness have many little plateaus of sanity - Terry Pratchett.
  5. Re:I'm so mad, I almost want to vote for by Tailhook · · Score: 5, Insightful

    Trump is...

    Here is Trump's actual policy regarding H-1B, which you may read on his campaign site:

    Increase prevailing wage for H-1Bs. We graduate two times more Americans with STEM degrees each year than find STEM jobs, yet as much as two-thirds of entry-level hiring for IT jobs is accomplished through the H-1B program. More than half of H-1B visas are issued for the program's lowest allowable wage level, and more than eighty percent for its bottom two. Raising the prevailing wage paid to H-1Bs will force companies to give these coveted entry-level jobs to the existing domestic pool of unemployed native and immigrant workers in the U.S., instead of flying in cheaper workers from overseas. This will improve the number of black, Hispanic and female workers in Silicon Valley who have been passed over in favor of the H-1B program. Mark Zuckerberg’s personal Senator, Marco Rubio, has a bill to triple H-1Bs that would decimate women and minorities.

    The last time anyone heard anything definitive about H-1B from Clinton was early in 2016 at which point she wanted a higher cap (more H-1B workers.) Not surprising given how much loot Silicon Valley has dumped into the Clinton coffers.

    --
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  6. Training is immoral by Dog-Cow · · Score: 5, Interesting

    Expecting an employee who is being fired to train his replacement is immoral. This is even more so when the employee is being fired without cause.

    The employees have every right, both legal and moral, to stonewall the education of their replacements. It would be immoral to sabotage systems or update documentation to be incorrect, but passive resistance is fair game, and far better than the University deserves.

    1. Re:Training is immoral by unixisc · · Score: 5, Insightful

      Immoral maybe when having a citizen train another citizen. Probably illegal when having citizen train H1B worker. After all, when are H1B workers allowed? When an organization can demonstrate that they can't find Americans to do the same job (says nothing about the cost of doing it). But here, you have Americans who can do the job having to train foreign workers who can't as yet do the job. If they were training an offshore team in Bangalore or Gurgaon to do it, it would still be legal, if sadistic, but if they have to train H1B's to do it, then no!

  7. University of California had a good reason by Anonymous Coward · · Score: 5, Funny

    University of California Cites 'Courage' As Reason To Lay Off Tech Workers

  8. Re:H1B by Anonymous Coward · · Score: 5, Insightful

    They *HAVE* skilled workers. They are getting rid of them.

  9. There goes the last "safe" employer by ErichTheRed · · Score: 5, Interesting

    UCSF is a medical campus, and they operate a hospital, so this is probably where the cuts are being made. Healthcare IT is badly funded and there's never enough money to do anything interesting...they're focused solely on keeping doctors happy so IT's needs never come before that. But, having a public university system signing outsourcing contracts with vendors, foreign or domestic, is a new twist I didn't see coming.

    It didn't say in the article what they offshored, but in my experience HCL is a mainframe programming shop, so of course this means that anyone being replaced is probably "old" and will have a very rough time finding employment even close to previous levels again. That sucks double for them, because they're going to be marched through the "train your replacement" humiliation to get severance/early retirement.

    I'm all for stuff like cloud computing, colocation, etc. where it makes sense, but I really don't understand why companies continue to believe they're going to get some great deal doing an outsourcing engagement. Do they not realize these companies have to get paid enough to profit from the deal? Where do they think that money comes from? I hate the trend of running companies on a huge tower of outsourced services. Every company of reasonable size should do almost everything in house -- it's cheaper in the long run and the employees doing the work are more engaged. There is absolutely no task that is better done by an outsourcer than your own employees.

  10. Re:It was likely on the table. by paiute · · Score: 5, Insightful

    You can trust HCL (which is actually located in Sunnyvale, not India) with that, because they have deep pockets to sue

    If they ever lose a major judgement we will find out that the US entity is a penniless shell and the money is all in India.

    --
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  11. Re:they should be teching real skills not outsourc by Alumoi · · Score: 5, Interesting

    Way off, buddy. I'm one of those eurotrash types who lives in a (still) democratic country. Unfortunately you USians are doing your damnest to destroy what's left of democracy all over the world.
    But I digress. It's a long standing tradition in your mighty country to buy your way into politics. Show me a politician not backed up by some lobby group (BTW nice euphemism for bribery) founded by some corporation. I'm not talking here about some obscure name from some obscure state but the ones from the federal level.
    Can you?

  12. Re:they should be teching real skills not outsourc by silentcoder · · Score: 5, Insightful

    >The fact that these elected politicians sell legislation to the highest bidder has nothing to do with Capitalism and everything to do with Statism.

    Sorry pal, but now you're moving the goalpost. You declared that capitalism is selling at the highest cost the market will bear. These politicians are being capitalists by selling their product, legislation to the highest bidder. Their supposed to sell it to the voters (who appointed them at the ballot box and pay their salaries with taxes) but the voters offer less than the market will bear.

    That's capitalism - like it or not.

    The thing is - this is not supposed to be a capitalist institution. A public university is part of the civil service. What you're seeing is the outcome of the long republican drive telling us "universities should be more like businesses" - which is what they are now doing, and this is exactly why that was always a terrible idea. The two types of organisation have nothing in common. Universities are not SUPPOSED to be profitable or efficient or even cost-effective. They are suppose to produce knowledge and to give that freely to the world. That's the exact opposite of what a business is supposed to do.
    If all you care about is the cheapest school the market will bear - private universities exist for that purpose, but public universities first and primary goal is supposed to be research and even their entire education section's sole real purpose is to pass the results of the research into the population and, coincidentally, train another generation of researchers to take over when the current batch dies.

    Making money, even training people for a job, is nowhere on the list of things a university is supposed to do. The latter is, at most, a tangential benefit from sharing knowledge with students.

    --
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