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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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