Immigration, Out Sourcing, H1-B visa

Information about the Effects of Immigration on Georgia

Your Tax Dollars At Work...Offshore
by Mike Crane

In a previous article we reported that your Georgia tax dollars were possibly being used to replace Georgian jobs with ones in India. As promised we have continued to look into this situation, although it is not easy to get specific information. In many cases people who should be on top of the situation seem to be confused or are always the wrong person to ask. So far our inquiries have been informal but that is getting ready to change.

We believe that this issue shows a major disconnect between the will of the People and the actions of our elected and appointed officials. There can be no reasonable doubt that the majority of the citizens of Georgia do NOT support using their tax dollars to send Georgian jobs to India or other foreign countries!


So in this article we are showing additional documentation that our tax dollars ARE being used to send jobs to foreign countries, then we will begin the process of identifying the legislation or lack of, who authorized and what can be done about it. For those of you in other states you need to wake up also. Apparently 42 States are already involved in this unholy practice.

The information below is from a report titled:

Your Tax Dollars AT Work ... Offshore:
How Foreign Outsourcing Firms Are Capturing State Government Contracts

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Your Tax Dollars At Work...Offshore

The following information about Georgia is extracted from this report.

Section I Georgia Department of Revenue

Georgia Department of Revenue
HCL Technologies; $638,000

In May 2003 HCL Technologies was awarded a $638,000 contract to "obtain an integrated solution to the development of a web-based statewide case tracking system to assist in suspected fraud investigations." State officials say they don't where the work is being performed.

HCL Technologies (Mass.) Inc.

  • main business: providing IT services and software development to government agencies
  • headquarters: Qunicy, MA
  • location of main development centers: India
  • a division of India-based HCL Technologies Ltd., which is publicaly traded in India
  • revenues: $338 million (total for parent company)
  • employees: approximately 15,000 (total for parent company)
  • Note: in 2002 HCL Technologies acquired Gulf Computers, which was already doing outsourcing for state governments.

SP Comments:

The referenced report states that:

State officials say they don't where the work is being performed.

We did a very brief 10 minute search engine search and web site review. Our conclusion is that you do not exactly need to be a rocket scientist to figure out thatgeorgia tax dollars this company takes jobs to a foreign country. If the  State officials are not able to look at the graphic to the right and understand it, perhaps they need major remedial education. More likely they are just being less than honest.

If you want to see for yourself:

And quoting the first paragraph:

Offsourcing (offshore + outsourcing) is a service provided by HCL Technologies that allows international clients to take advantage of software development in our state-of-the-art development centers. We work with a clear focus on providing continuous value to our clients, recognizing the benefits and cost savings that an offshore-onsite model can bring. The fact that more than half of our revenue comes from such offshore-onsite arrangements is a reflection of our corporate focus and well-defined methodology for successfully executing an Offsourced arrangement.

If the wording on that section was too complex for State officials, their company's web-site has a section called "Who Are We?." Quoting from it:

We are one of India's leading global IT services and product engineering companies, providing value-added, software-led IT solutions and services to large- and medium-scale organizations.

We will let our readers decide if the "State officials" could not understand the easily available information quoted above OR were being less than honest! In either case the average tax payer may not be too pleased.

Section II Georgia's Department of Human Resources

In an earlier article we reported information from the AJC about the Georgia Department of Human Resources sending tax payer supported jobs to India. This is true, but due to corporate changes the information needs to be updated. In the AJC report the jobs were sent to India via a contract with Citicorp. However the Citicorp contract has been purchased by J. P. Morgan. This in itself is not encouraging as J. P. Morgan has recently settled a law suit for its involvement in the Enron scandal by paying a $135,000,000.00 fine.

The following information is listed in "Profile of State EBT Contracts"

State: Georgia
Contractor: J. P. Morgan Chase
Call Center Location: Offshore
Contract Expiration: June 2011
Annual EBT Costs: $8.0 million

The following information is listed about J. P. Morgan:

J.P. Morgan, eFunds and ACS located most of their call centers in India; in Morgan's case, the work is handled by an Indian subcontractor called MsourcE. Morgan and ACS also have call centers in Mexico for Spanish-speaking callers.

SP Comments:

Once again the companies involved are clearly identified as specializing in sending jobs to foreign countries. When these contracts were executed there was no doubt that Georgia Tax dollars were going to be used to place jobs in foreign countries.

In fact MsourcE will soon be using call centers not only in India but is now expanding to China! Did you as a Georgia tax payer ever support sending your tax dollars and jobs to China! But once again don't take our word for it, a brief 10 minute search engine scan on MsourcE produced the following:

MsourcE, a subsidiary of MphasiS BFL Ltd, is likely to open its new facility in China by the end of this fiscal.

The Rs 93.6 crore (Rs 936 million) company has stated in its latest annual report that it is also evaluating other destinations in South East Asia. However, current situations seem to favour China as the right location.

The fact that its parent, MphasiS BFL acquired the entire stock of Navion (Shanghai) Software Development Company Ltd during the quarter ended March 31, 2003, seems to have augured well for MsourcE.

"We will try and leverage our facility in China, its people and infrastructure to further develop our BPO capabilities. We are focusing on one strategic location every year," Bhaskar Menon, president, MsourcE Corporation, said.

We do not know about you, but we are not excited about someone in China, on our payroll, having information such as social security number, address, phone number, etc. State officials who want to send jobs to either India or China should be required to move there.

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Reference Articles:

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  More Information On the Effects of Immigration on Georgia

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