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More American jobs to foreign
countries, HP this time ...
by Mike Crane
Industry and Financial headlines for the last few weeks have
been featuring items about the new layoffs at HP. Hewitt Packard as
most know is one of the great high-tech American success stories -
or at least it used to be.
But here is one of the high-tech giants announcing layoffs of
14,500. That is a lot of people and initial accounts seem to
indicate that a large share of the layoffs are Americans. Layoffs of
10% of entire work force is a major reduction.
But a quick look at HP financial reports do not show impending
disaster. The last two quarterly reports of HP have shown reasonable
profit growth, so what in the world could be causing HP to layoff
14,500 employees and enact other revisions such as eliminating
future employee pension plans, etc.
Only the Board of Directors of HP know the true story, but
some digging into HP world wide activities shows what is becoming a
pattern found all too often. Increasingly, companies that show this
pattern are providing public statements that fail to disclose facts
concerning their replacing Americans with foreign workers.
Some statements from the India press shed some light on this
pattern:
How does HP look at India as a place to do business?
India is an extremely important market and one of the focus regions
for HP. Besides being one of the fastest growing and larger markets
as purchasing economy for our products and solutions, India is also
very important from a development perspective. In fact, with over
16000 employees , India is the largest
employee base for HP secondly only to the US. A lot of critical
software development work for some of storage software products is
now happening in India.
Source:
'India
is a focus region for H-P'
HP has been aggressively building facilities and hiring
employees in India. The above information comes from an interview in
the India Times with HP's Bob Wilson who is general manager and
vice-president, Nearline Storage, HP Storeworks division dated April
8, 2005.
Another example:
BANGALORE: Several telecom and
IT multinational majors including AT&T, HP and Convergys have
started scouting for acquisitions in the domestic business process
outsourcing (BPO) segment.
Several leading MNCs have identified mergers and acquisitions (M&A)
as the strategic tool in the BPO space to acquire clients, domain
and process expertise, according to the latest segment report by a
merchant banker.
In the past one year, 13 M&A transactions have been completed in the
BPO space, where most of the deals have been cross-border
transactions of either MNCs acquiring Indian BPO firms or
vice-versa.
This is also from the India Times,
AT&T or HP, all want Indian BPOs on August 13, 2004. In this
article MNC stands for multi-national-corporation and this is of
course what HP now is.
The extent to which HP is focusing on
its investments in India is further documented in the India Times:
BANGALORE: Leading
technology solutions provider, HP on Friday announced Wipro as
its first Indian Global System Integration (GSI) partner.
"HP has decided to
strengthen its alliance with Wipro by extending the system
integration partnership to HP's entire portfolio of HP open
view suite of software," Sandeep Johri, VP Strategy and
Planning, Management Software Business Unit, Hewlett Packard
told reporters.
Under this alliance, HP and
Wipro, will together maximize opportunities in the market to
deliver Remote Management Services, System Intergration and IT
infrastructure Library consulting, using HP openview
management software for global customers, he said.
Wipro will be HP's new GSI
partner also along with Cap Gemini and Accenture for HP
software.
The partnership will help
leverage Wipro's large open view skill pool at Bangalore and
accessibility to each other's customers as well, he said.
Source:
Wipro, H-P in alliance
Wipro and Accenture are large scale
outsourcing companies, so this last news item is very important. Not
only has HP begun the process of replacing its American employees
with foreign workers, it is now coming for other companies American employees's jobs to move them to India.
HP has joined IBM and other American companies - in the business of
moving American jobs to India.
So HP rapidly buys and/or hires in excess of 16,000 employees
in new facilities in India over a couple year period. Forms joint
venture and partnerships with large scale Indian outsourcing
companies and then announces the layoff of 14,500 employees mostly
in our country.
If it looks like a duck, waddles like
a duck, quacks like a duck and tastes like a duck - it probably was
a duck.
Oh, another recent announcement. Procter & Gamble has
announced that they are initiating a contract with HP for many of
their IT services. The India Times is reporting this contract as
work coming to India.
So apparently after dumping as many of its American employees
as possible, HP is coming after your job now.
Outsourcing of American jobs is a policy that is supported and
encouraged by your government and your elected officials. Your
elected officials even use your tax dollars to send American jobs to
foreign countries. It is up to you the citizens to determine how
long this will continue.
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