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Laid-Off IT Workers Worry US Is Losing Tech Jobs To Outsourcing (www.cio.in)

An anonymous reader shares a CIO article: Sixty-three-year-old Bob Zhang is worried about the future of tech jobs in the U.S. Will the high-paying positions be a thing of the past? Zhang thinks it's already starting to happen. He's one of 79 IT workers from the University of California, San Francisco, who've been laid off. Tuesday was their last day on the job. To replace them, the school is outsourcing some of their work to an Indian firm. "Usually, they outsource the low-paying jobs," he said at a gathering outside a school building. "But now they use H-1B (visa) and use foreign workers to replace the high-paying jobs. This trend is dangerous." It was a sentiment shared among the laid-off IT workers, who've tried to push the school to save their positions, to no avail. Now they fear other publicly-funded universities will take the same approach, and replace U.S. employees with foreign workers. "Once you send out the manufacturing jobs, once you send out the service jobs, once you send out the research jobs, what's left? There's nothing left," said Tan, who's 55 and now looking for a new job. Kurt Ho, another laid-off worker, said he was paid an annual salary of about US$110,000, but the new workers replacing his position will fraction that amount. "In two years, I could be at another company, and I could be facing the same thing," he said.

27 of 391 comments (clear)

  1. Uh...yeah! by AntronArgaiv · · Score: 4, Insightful

    "Once you send out the manufacturing jobs, once you send out the service jobs, once you send out the research jobs, what's left? There's nothing left,"

    Well, thank goodness people are beginning to wake up. If you're doing business (i.e.: taking money from people) in a country, especially THIS country, you have a moral obligation to employ people from the community, if possible. Adjust your profit expectations accordingly. We're all in this together, or at least, we should be.
    The H1-B scam has been going on long enough.

    1. Re:Uh...yeah! by peragrin · · Score: 5, Insightful

      A business is not a person. A business has only one moral. What is good for the profit margin. A business will poison the water, and kill its employees as long as their is profit is greater than the cost. See the majority of environmental disaster for the last 300 years. At the center is a business saving money by not safely disposing of products. Even Fukushima was at the heart a business saving money by providing the minimum levels of safety.

      --
      i thought once I was found, but it was only a dream.
    2. Re:Uh...yeah! by Anonymous Coward · · Score: 2, Insightful

      According to the Supreme Court, a business (corporation) *IS* a person. Fix that for a start and you might make some progress.

    3. Re:Uh...yeah! by AmiMoJo · · Score: 5, Insightful

      Pass a law limiting CEO pay and shareholder payouts to some multiple of the number of the salary of every employee below C level. Even better, just limit profits and capital in a similar way, with the excess being taxed off.

      Suddenly employment and good wages become assets rather than liabilities.

      A lot of Japanese companies see their primary reason for existing as to provide employment. I don't think is possible in the West, but perhaps we can change how companies see their human resources in the same way that environmental regulations made efficiency and emissions a factor.

      --
      const int one = 65536; (Silvermoon, Texture.cs)
      SJW, n: "Someone I don't like, and by the way I'm a fuckwit" - AC
    4. Re:Uh...yeah! by wwphx · · Score: 4, Insightful

      I've been saying for a few years that the unofficial motto of the Republican Party is "I've got mine, screw you" and this just perpetuates that even though this is driven more by the on-going reality series, Wall Street and the Quest for Quarterly Profits. Though I could save money by getting my prescription meds via mail, I buy them locally because that's local taxes and supporting local jobs. And when our pharmacy plan calls to tell me how much I could save, I tell them that and it usually leaves the person on the other end of the line silent.

      I don't understand how people can think that money is an infinite resource. It has to be backed by something tangible, and when you remove wages from the local economy like this then you weaken the local economy. The middle class is on life support, and that seems to be what the RNC and Wall Street want. There's a story of Henry Ford showing a UAW president a robotic assembly line, bragging about the robots never strike, never ask for a raise, don't take time off sick, can work 24 hours a day. The UAW president replied "But how many cars do these robots buy?"

      Personally I think morality left business when the personnel office became 'Human Resources'. When you devalue a person to a slot that can be filled by any number of interchangeable people, then morality and ethics are out the window.

      --
      When you sympathize with stupidity, you start thinking like an idiot.
    5. Re:Uh...yeah! by wyHunter · · Score: 3, Insightful

      Grow up. Clinton supported outsourcing in a big way because "These were jobs American didn't want!" And Obama supported the TPP - you know, the trade agreement that would have taken the last of the jobs in the country. New Boss, Same Old Boss.

    6. Re:Uh...yeah! by D00MSlayer · · Score: 4, Insightful

      Considering that CEO-to-regular employee pay is now around 300-to-1, and that CEO pay has increased almost 1000% since the 1970's, and regular employee compensation has only increased 10% in the same time frame, I'd say that there are serious socioeconomic impacts that needs to be addressed.

      Personal opinion:
      It's not ideal to enforce pay restrictions, but there has been a serious class divide over the last 40-50 years, culminating to a point where CEO's are paid absurd compensation packages, even in the event that they tank the company. Employees are now no longer considered valuable assets to a company that is not employee-owned. Something needs to be done to balance company salaries, and to prevent CEO's from running away with the lion's share when the employees are likely more responsible for the company's success than the CEO.

      If proposed laws to restrict CEO pay are not constitutional, we should amend the constitution to allow it. Until we do, they will reap the unwarranted benefits incurred by the labor and sacrifices made by the under-paid employees.

      Again, this is my personal opinion and I could be completely in the wrong, but I feel like SOMETHING needs to be done or else we're all going to be stuck with the shitty end of the stick for a long time to come.

      http://www.epi.org/publication...

  2. UCSF is training people for...what? by Anonymous Coward · · Score: 3, Insightful

    Isn't UCSF putting themselves out of a job? If the jobs get outsourced, then who needs UCSF? There's no reason to go to UC and get trained for something if no one will hire you.

    1. Re:UCSF is training people for...what? by Kohath · · Score: 4, Insightful

      UCSF will educate foreign students. Colleges in the UC system and most other state-sponsored colleges nationwide actually prefer foreign students. Locals pay less through in-state tuition discounts while foreign students pay considerably more.

  3. Reversion to the mean by sjbe · · Score: 5, Insightful

    Once you send out the manufacturing jobs, once you send out the service jobs, once you send out the research jobs, what's left?

    A reversion to the mean. The US has some of the highest wages in the world. That's great but if we want to keep it that way we need to be doing things that are hard to replicate outside the US. That means investing in research and education and technology and infrastructure and supply chains. All things that have payoffs which are measured in decades. There is nothing special about the US that entitles workers here to abnormally high wages when the work can be done adequately well in locations with lower labor costs. If we want higher than average wages then we need to do things that will get higher than average results.

    That's why a lot of the rhetoric coming from Washington about "bringing back manufacturing jobs" is just nonsense. Unless you want to accompany it with a reduction in wages to significantly lower amounts than we currently expect. Those jobs left because they were labor intensive and labor costs were substantially lower elsewhere. If the job can be done in China for $2/hour, you aren't going to compete on labor intensive manufacturing with wages of $15/hour or more. No amount of political promises will change that fact. Those jobs aren't coming back unless a drastic drop in wages comes with them. I'm pretty sure we don't actually want that.

    1. Re:Reversion to the mean by flink · · Score: 5, Insightful

      If those manufacturing companies destroy all the wealth of the middle class by outsourcing all the jobs, they'll have nobody left to sell their shit too. This is why globalization is a loser's game. The "invisible hand" and free market only work if both labor and capital are mobile. But in the global economy, capital is infinitely mobile, while people are still mostly restricted to finding work in their own countries. This allows globalized corporations to play countries off each other in a game of international labor arbitrage to the detriment of every single human being on the planet.

    2. Re:Reversion to the mean by TheGratefulNet · · Score: 4, Insightful

      people are leaving india (etc) to come to the US and they get a MUCH BETTER STANDARD OF LIVING. its a win for them.

      reverse it: you are suggesting we americans leave one of the best countries in the world (for living standard) because some rich assholes CHOOSE to not hire us and watch us starve if we stay locally?

      I think your thinking (and human compassion) needs work, my friend. you have an odd way of seeing things.

      expecting locals to uproot because some rich fucker says so? yeah, that's surely the american dream, right there.

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      --
      "It is now safe to switch off your computer."
    3. Re:Reversion to the mean by Anonymous Coward · · Score: 5, Insightful

      If we want higher than average wages then we need to do things that will get higher than average results.

      I work at UCSF (so posting AC). The truth is these IT workers were simply never very good (at least on average). The network is slow and unstable. Requests take forever to be filled. IT places unreasonable costs on anyone foolish enough to work with, instead of around, them. They charge over $1,000 just to make a single DNS entry for a new computer, for example. Then there's the bloatware they stick on university laptops and PCs - Symantec, BigFix (institutional spyware), Dell Data Protection. DDP in particular is totally incompatible with recent Mac OSes, leaving most Mac laptops with frequent "reboot to update" prompts that never go away (not fixed in two years).

      They also failed to garner allies at UCSF who would have fought for their jobs. This is an institution of scientists who depend on IT services in most aspects of their work, and one in which professional camaraderie is very important. Unlike some other schools / research centers, IT here never participated in the culture. If they had made themselves personally available to people, if they had shown that they cared about the scientific output of the university, if they had demonstrated some dedication to making things work for people, so their science could get done, and if they had built some social capital through friendly outreach, then they wouldn't be getting outsourced.

      UCSF is a premier research university - the second largest recipient of NIH funding in the country - and most aspects of the university reflect that. I'm sure some companies would outsource workers to save a couple short-term bucks regardless of how indispensable those workers had become. This university isn't like that, but we will look for a cheaper option if there's nothing to recommend sticking with what we've got.

  4. Global competition by xession · · Score: 3, Insightful

    And herein lies the inherent problem to the globalized capitalist economy. Eventually, there could be an equalized economy shared across the globe.

    Getting to that point however, requires that the economically healthy nations fall while the economically poor nations rise.

    The business owner benefits. The bankers benefit. The shareholders benefit. The workers get the shaft. Historically, trends like that lead to bad things.

    1. Re:Global competition by TheGratefulNet · · Score: 3, Insightful

      binary thinking, much?

      I don't want to buy a sports car. I just want to have a stable job that lasts long enough for me at at least CONSIDER buying a home. not owning a home means that every few years, I have to move when the landlord decides to sell his rental home or eject me since he can make more money with a new tenant than one that has been there for a few years. add to this the fact that you cannot rent a place unless you HAVE A JOB AT THE TIME (at least in the bay area, its an unwritten rule and I've been caught in that situation more than once; its not fun, let me tell you.)

      its not about luxuries. its about having a stable life, being able to continue to afford healthcare, to be able to continue to afford the RENT payments and all that. forget even saving for the future, I'm just about able to make immediate bill payments and hope I break even each month.

      why should I care about some other country's poor folks? we have enough problems in this country; I don't see india (etc) reaching out to help the US! no other country is reaching out to help us, either. so why is it OUR JOB to employ the world's poorer people in their own countries AT OUR OWN EXPENSE?

      I know where you're from. I can tell by how you write.

      and you have a very unbalanced view of things.

      --

      --
      "It is now safe to switch off your computer."
  5. This is illegal. by mrchaotica · · Score: 5, Insightful

    It is only valid to hire an H1B when a qualified citizen does not exist. If you're laying off citizens to replace them with H1Bs, the use of H1Bs was clearly not valid.

    --

    "[Regarding the 'cloud,'] ownership was what made America different than Russia." -- Woz

    1. Re:This is illegal. by Kohath · · Score: 4, Insightful

      Incorrect. The rules you're talking about are easily and routinely gamed. The workarounds are straightforward.

    2. Re:This is illegal. by Mashiki · · Score: 5, Insightful

      Hah. Nope. You miss all those stories in the news and even here on /. over the last couple of years of people being forced to train their replacements and being replaced by H1B's? Guess so, there's no shortage of stories on it. These companies are gaming the system. Just like companies in Canada are abusing the TFW(temporary foreign worker) program. The difference between H1B and TFW if anyone is wondering is that a TFW can work any job. The shittiest companies at the very bottom(janitorial/fast food), to big name companies like Royal Bank of Canada have been caught gaming the system up here too.

      This type of stuff is what causes violent revolutions, and neither governments or businesses seem to give a shit that they're contributing to something that will bite them in the ass. Only upside is down there in the US, Trump wants to gut and fix that program. In Canada, Trudeau decided to undo what the conservatives had put in place in order to limit how companies could abuse the TFW program.

      Nothing but a race to the fucking bottom, and it's very easy to see where this shit started. Those people who used to seasonally work as farm workers(fruit/tobacco/etc). When I was a teen, you could make 30-50% more per hour then min wage. Then the government changed the rule to allow imported foreign labor. Hourly wages went away, people were paid by weight/count. And people who lived in the country stopped doing the work because it was an absolute shit wage being paid.

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      Om, nomnomnom...
    3. Re:This is illegal. by Khyber · · Score: 4, Insightful

      "You been paying attention to what he's done and said?"

      Yes, for the past 20+ years. Apparently you have not paid any attention to him until recently, which makes you a complete moron for trusting him.

      --
      Still waiting on Serviscope_minor to wake up to fucking reality and realize that Jessica Price isn't going to fuck him.
    4. Re:This is illegal. by Anonymous Coward · · Score: 2, Insightful

      You been paying attention to what he's done and said?

      Yes, it has been staggering in his lack of competence, and general inability to remain accurate to facts, combined with self-aggrandizement and deceit.

      Do you think I didn't notice? Well, I think you haven't noticed. I bet you can't even name 10 of Trump's personal screw-ups. I'll even let you pick them out over his life time, even though you could likely do it in the last week if you paid attention.

      Let me know when you get to the part where he's been keeping his promises, and putting people in place who would happily stand up to his views if they're bad.

      Neither one of those things has happened. Ok, I heard maybe DeVos tried to push back on the transgender ruling, but that didn't lead to anything different. It's still gone. Because you know, that bathroom business is SO dreadful. But let's see, we have his military operation (a failure), his precious executive order (also a failure, a failure so bad he put it off again this week), and alternative facts out the wazoo.

      Evidence indicates he doesn't listen to advice, and his parrots are trained to tell him whatever he wants to hear. And his promises are not kept.

      Your thinking is still stuck in a period where politicians would lie through their teeth, and you're now in an era where you have a person who wasn't ever a politician until he was elected POTUS keeping his promises.

      Your thinking seems to be stuck in the idea that Donald Trump doesn't have a history of lying through his teeth and out his ass, whose idea of keeping a promise is pretending he did something, when he did no such thing. His history as a businessman is one of scams and deceits, of self-promotion and failure, and has been known since the 1980s. After the election? See Boeing. (Railing at nothing, as the project to replace the VC-25's was in the planning stages) See Lockheed(nothing he did to accomplish any savings), see the deficit(he had boasting about a 200 billion dollar blip when he hasn't even passed a budget), see his executive order(a failure on its own, which he promised to fight in court, but he's not going to do that because that's a waste of time, and even now he put it off, because it'd just make him look bad), see his nominees to join the Swamp(A number of troubled individuals, from a racist to an unqualified bear-fearer).

      And now the funny part. Where you can hear the former never-trump, anti-trump people who've flipped pro-trump because they've seen him keep his promises and do more in a month then the Obama administration did in 4 years. To paraphrase.

      Nope. You should hear the real truth: People aren't flipping to Trump. He can claim to be beloved, and appreciated, but it turns out, he's still the guy who didn't win the popular vote. The things he's done include a flopped executive order, whining about his daughter's product line being dropped, nominating numerous incompetent or corrupt people into office(one who has already resigned, another who was just revealed to have lied in his nomination process), blathering out a litany of lies, oh wait, wait, he called them Alternative Facts, railing at the media(He really hates criticism, in case you haven't noticed), and otherwise totally striking out. No ACA repeal on the table. Instead, he just realized it would be complicated. Frankly, that's the most shocking thing I've heard out of him, it's basically demonstrating to me how badly he presented himself on the subject. Oh but wait, Ryan is doing something. Right? Oh wait, he's keeping that under wraps. Oh my.

      I suppose you could count the Supreme Court nominee, bu

    5. Re:This is illegal. by Mashiki · · Score: 2, Insightful

      Do what in a month? Take credit for stuff that the Obama administration worked on for 8 years?

      You mean Obama's actions to worsen race relations in the US? Every single time he opened his mouth on something relating to race, he made the situation worse? That instead of waiting for truth, his administration would fabricate and outright lie? You remember Benghazi don't you? How's that "it was because it was a video narrative" bullshit working out these days. To fund terrorists in the middle east because Assad? To back groups that are linked to ISIS? You wonder why ISIS is already on the run a month into Trumps presidency when the mad dog was let off the leash.

      The only thing he's really done is to stun the rest of the world into immobility for a while until they figure out whether he is the homicidal maniac that he tries to pretend he is . As soon as somebody else decides to stomp on his balls and gets away with it, it's game over for the game guy.

      Yeah because picking Hillary was a great idea. The same person with so many conflicts of interest that she was beholden to dozens of governments? Gee you catch why part of the clinton foundation suddenly shutdown. Her desire to push the US into a war with Russia is a great idea too. Especially since she wanted to bomb them in Syria. How about her wanting to drone strike Assanage. Yeah, there's that homicidal maniac you're looking for. You wonder why marines had to be assigned under the Obama administration, but over 13k of them volunteered to be on the detail for Trump. Dig your head out of your ass.

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      Om, nomnomnom...
    6. Re:This is illegal. by Mashiki · · Score: 1, Insightful

      No president in the history of the US has blocked the press like he is.

      Oh boy. Time for you to actually dust off a history book, and go read up on FDR. I'll also wait for you to go read up on how the Obama administration tried to block the press. I'll also wait for you to read up on all the times that the Obama admin stuck minders, and locked reporters into rooms so they couldn't see "official political events" from happening.

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      Om, nomnomnom...
  6. I don't mind losing the job. by Anonymous Coward · · Score: 5, Insightful

    What I mind is the mentality that "if you're unemployed, then you're no good."

    It kills me when I apply to jobs that I fit very closely or even exactly only to hear nothing back or "you don't have the skills."

    And what really hurts is when your friends and family wonder why you can't get a job because you're a programmer and there's a shortage of programmers.

    THAT hurts along with the comments. They think if you "know computers" you can just walk into any job you want and if you can't, then there's something wrong with you.

    I love programming and computers - I HATE this goddamn industry!

  7. Hopefully, Trump will stop this by p51d007 · · Score: 3, Insightful

    This is an ABUSE of the H1B visa program, clear and simple. It's been done under democratic "leadership" and republican "leadership" Why? Simple...$$$$ corporations want to earn more profit, so they outsource for pennies on a dollar, kick back a ton of so called campaign donations, to ensure that the government goes along with it.

  8. I'm worried about the "newbie pipeline" by ErichTheRed · · Score: 5, Insightful

    I'm 41, so I guess I'm way past due for Logan's Run style "renewal". However, I'm still here working in IT hoping I can stick around as long as possible because I actually enjoy the work a lot. I really don't like the fact that age discrimination makes it very hard for laid-off older IT workers to come back into the profession (and yes, it does exist....I understand some people don't keep their skills sharp, but even good people over 50 can't get cold call interviews; they need to know someone.) In my opinion, outsourcing and the H-1B visa simultaneously implement a brake on salaries for experienced people, and take away entry level positions that are needed to replace people at the low end. When a company can call up one of the body shops and cut their IT costs (on paper) by 80%, it's very difficult to convince them that they'll end up paying way more in the end.

    This is a subject I care about a lot, because one of the things I like best about my job is sharing knowledge with the newbies and making them better IT people. It's fun being the adult in the room and showing people who've grown up with systems that are very abstracted from the actual goings-on under the hood how something actually works behind that cloud service, API call or PowerShell cmdlet. IT pros with a good grasp on fundamentals have no trouble picking up the latest fad or hot tool in my experience. What I worry about is the fact that people coming into the profession will see offshoring, outsourcing and age discrimination as a reason to not go into IT or software development. People aren't dumb - if they're smart enough to be excellent students, they'll pick a path like medicine, pharmacy or the rarefied world of investment banking or management consulting. Medicine is especially attractive for simple reasons -- the profession is highly regulated, experience is actually respected and rewarded, and the supply of medical school slots is kept low to ensure high salaries for people who put the work in. If you're smart enough and have a photographic memory, I can't see any reason why a young person today wouldn't try to get into medicine. We could use a lot more smart, talented people in IT. Another thing is working conditions, which could be improved in many places. That said, not every job involves 16 hour days banging out JavaScript in FrameworkOfTheMonth 0.9.1 while chugging Red Bull for a phone app; I've chosen to forego the highest possible salary to choose sane employers who understand work-life balance and actually appreciate my experience.

    I think that the body shops who are abusing the L-1 and H-1B programs should be stopped. Kicking out the ladder of entry level IT employment is a bad thing and will lead to executives feeling that the only way they can get competent people is hiring from these body shops. Once that's firmly in place at every company, the profession is pretty much doomed to a fate of hourly, gig economy contracts whose rates just keep dropping. So, preseve the pipeline of newbies -- give them work so they can learn how to do IT right.

  9. Re: Duh... And in other news, the sun is hot. by Anonymous Coward · · Score: 4, Insightful

    You will all the thanking trump once he starts the next phase of immigration reform - H visa reduction. It has been his plan all along. Trump has been aware of the destruction foreign workers sponsoring companies cause. The problem is three fold. The government providing visas. The companies will to directly hurt Americans and America by using them, and the desperate foreign workers that will do anything to get out of thier terrible countries. America is the best place even now.

    Once Trump cuts the H visa program to shreds, the other issues resolve itself. Remember Trump has already set the stage for penalizing companies to move operations off shore and rewarding companies to stay on shore.

    I hated Trump during the election. But after sorting out all the false news, I love what he's doing. He is saving our sovereign nation.

    We are America. Not the world. We need to do what is best for our nation and its citizens FIRST, then play world police second. Not the other way around - the way it has been. Someone let this happen. From the 90's. Politicians selling out the American people to enrich themselves.

    God bless Trump. And you all need to wake up. Celebrities are not leaders. They are simple people working for ALot of money. Don't idolize them. And don't think they know best. They don't live like us. Not even close.

  10. H-1B Visas by zifn4b · · Score: 2, Insightful

    Cue the propaganda about there being a worker shortage again. There is no worker shortage. There are workers lined up to work in IT. US companies have a champagne taste and a beer budget because that's what drives these insane profits on the stock exchange. The champagne is the American workers, the beer is the foreign workers for the most part with a few exceptions. This is why we need to suspend the H-1B Visa program because American companies will have no choice but to compromise. They certainly can afford it. I think it's only fair, the American people have been asked to compromise and compromise and then compromise again since 2008 to do their part to help the economy recover from The Great Recession. We've fulfilled that obligation now and it's time for us to get a slice of the historically enormous cash pile that has built up and been stored overseas to avoid repatriation.

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    We'll make great pets