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Failed Bush policy  - over-invested in high-cost geographies like the U.S.
by Mike Crane

The Bush Administration claims that sending jobs to foreign countries is " good for us ." Well here is another example of just how failed the Bush polices are. The article below shows another American high tech company moving their future expansion to foreign countries.

The spin offered by Sun Microsystems is very clever, they are " over-invested in high-cost geographies like the U.S. " -  but are " underinvested in low-cost geographies like India ."

But looking at their statements, this could be written in other ways also! For example:

underinvested in low-cost geographies like China, Russia and the Czech Republic

I am sure that every American is very excited about American companies making major investments (read jobs) in China. Now Bush tells us that this is good for us ! That when American companies make major investments in foreign countries it creates more jobs here than in the foreign country!

Well someone at Sun Microsystems forgot to get their required education from President Bush. Look what Sun Microsystems has to say about the effect on jobs in our country:

but won't hire many, either.

So Sun Microsystems will hire thousands of high tech workers in India, China, Russia and the Czech Republic but here in our country - " won't hire many ." President Bush not only tells us that this is good for us but that it creates more jobs. Someone is not telling the Truth!

But read the Sun Microsystems statement again. The following is very important:

 company's plan to consolidate its worldwide research staff in those places

They are moving their research and development to a foreign country. When they develop new products where do you think that they are going to build and produce those products? But don't worry, Bush will tell us that this is good for us , so we should not be concerned! President Bush expects you to believe that developing and producing products in foreign countries creates more American jobs than if these products were developed and produced here!

But then we should not complain about a company like Sun Microsystems doing the same exact thing that both the Republican National Committee and President Bush did in their campaigns last year (see: India claims big election victory and laughs at Americans ):

"He retained the services of Noida-based HCL eServe (the BPO arm of India-based HCL Technologies.) Its operators thereafter spent quality time, calling up American citizens to support GWB Jr for President and to also contribute to the Republicans."

And the Republican National Committee demonstrated their strong support for American workers also:

"As for its getting the names of voters from such a distance, that was thanks to a database provided by the Republican National Committee (RNC), the party's premier political organisation."

Day by day, month by month, this trend continues. Actually both major parties are just as involved in this steady drain on our country's future, but the Republican leadership has taken the lead in promoting outsourcing.

Here in Georgia (see: Your Tax Dollars At Work...Offshore ) we even have tax payer dollars being used to send American jobs to India! If you pay taxes in Georgia you are supporting putting some Americans on unemployment, and then paying more for the impacts of unemployment on our society. One example of Georgia tax dollars sending jobs to India follows:

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.

Interesting ...

This Georgia tax dollar contract was signed during the Administration of Republican Governor Sonny Perdue. It is using the same India corporation that the 2004 Republican National Committee and President Bush used. Now putting this in perspective - how many Georgians support using their tax dollars to send jobs to India? Probably about the same percentage of Americans that are excited that George W. Bush and the Republican National Committee used India to do their campaign calls instead of Americans.

Also interesting was the statement by the Georgia Department of Revenue that they did not know where theoutsourcing jobs to india work was being performed. The web site for HCL Technologies is: http://www.hcltech.com/offsourcing-default.asp. A very brief look at this web site presents the image on the right. I find it hard to believe that any sane adult with even minimal level of intelligence would have trouble figuring out what the image means. Either the Georgia Department of Revenue officials are falling a bit short of telling the Truth or do not have the brains God gave a goat!

Even more interesting or perhaps disgusting is the fate of Senate Bill 12 (see: Legislative Agenda - SB12 Prohibit tax paid outsourcing ) in this years Legislature. This bill would restrict "future" outsourcing of Georgia tax dollars to send jobs to India. In a Republican controlled State Senate it was killed in committee. Did not even rate a public hearing.

Outsourcing is not only a national problem, it is a Georgia problem. It is a complicated issue - but you can take it to the bank that it is going to get worse - until you the citizens demand reasonable solutions. The longer you wait, the bigger the hole we will be in.

In the meantime President Bush and even Sonny Perdue will continue to tell us - that outsourcing jobs is good for us.

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Sun Microsystems Expands 4 Facilities

The four research and development centers are in the Indian city of Bangalore, the Chinese capital of Beijing, Russia's St. Petersburg and the Czech Republic capital, Prague.

"We are over-invested in high-cost geographies like the U.S., and underinvested in low-cost geographies like India," Stephen Pelletier, the company's senior vice president of global engineering, told reporters in Bangalore.

Pelletier said the company will not lay off programmers in the United States � but won't hire many, either.

"We are not pulling out," he said. "We are going to have a big presence in the Silicon Valley for a long time."

But the ability to quickly hire a large number of programmers in India and other low-cost locations justified the company's plan to consolidate its worldwide research staff in those places, he said.

The company has reduced its staff to about 30,000, from roughly 43,000 four years ago. However, it has cash reserves of $7.5 billion � enough for expansion.

Sun Microsystems, headquartered in Santa Clara, Calif., employs nearly 1,000 software engineers at its Bangalore center � a number that will double in two years, Pelletier said.

The other three centers will see similar growth in employee numbers, Pelletier said, without giving details.

Scores of multinational firms outsource software programming, engineering design and routine office functions to countries such as India, where skilled workers are plentiful and wages are low.

Sun Microsystems, which thrived through the 1990s Internet boom, has fallen on tough times in recent years. It has sought ways to control rising costs, particularly in research and development.


On the Net:

Sun Microsystems: http://www.sun.com

Source: http://ajc.com/business/content/shared-gen/ap/Finance_General/India_Sun_Eastward.html

New feature for Georgia Registered Voters - We are participating in trial of a new eLobby feature that will provide information for the elected officials in your district only. An excellent way to keep track of your State Representative, Senator and Congressman and let them know what you want them to do. Click here for more information. SB12 is one of the legislative bills that we will be using the new feature for. If so inclined give it a try.

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