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Intel, Motorola, and Microsoft moving engineering and development to China
By Mike Crane

Three of the largest and former very American companies in the technology sector are moving their development to China. Have you given any thought about the long term impact of our government policies that have fueled the outsourcing (or offshoring) expansion the last decade? Have you given any consideration about what the long term impact on your grandchildren will be?

First lets compare the public statements of these now multi-national - not American - companies to actual research studies to set a level of honesty and integrity.

Public statements: they say they have to use H-1B visas and outsource their work due to a shortage of American engineers. Sounds like Bush, Republicans and Democrats on the need for illegal immigrants doesn't it?

Research findings: (http://www.issues.org/23.3/wadhwa.html): It is common in many industries to offer signing bonuses to encourage potential employees to accept a job offer. We found, however, that 88% of respondents to our survey did not offer signing bonuses to potential engineering employees or offered them to only a small percentage of their new hires. Another measure of skill supply is the amount of time it takes to fill a vacant position. Respondents to our survey reported that they were able to fill 80% of engineering jobs at their companies within four months. In other words, we found no indication of a shortage of engineers in the United States.

Are multi-national corporations being less than honest? In other words to put that question in POOR (Plain Ole Ordinary Redneck) terms:

Are they lying to the public?

The same Pratt School of Engineering of Duke University study consisting of a survey of these companies came to a conclusion about why they are sending American jobs to foreign countries:

Reasons for going offshore. India and China are the top offshoring destinations, with Mexico in third place. The top reasons survey respondents cited for going offshore were salary and personnel savings, overhead cost savings, 24/7 continuous development cycles, access to new markets, and proximity to new markets.

This POOR candidate draws what seems to be an obvious conclusion:

The multi-national corporations, Bush Administration, leading Republicans and Democrats are lying to the public. There is not a shortage of Americans who qualify for these jobs, there is an excess of corporate greed for "cheap labor" and lying politicians!

To put this in more acceptable politically correct terms - they are lying to the public. Ooops - guess I will fail the politically correct test.

What does the actual transfer of jobs data show?

If these companies, Bush Administration, leading Republicans and Democrats are telling the truth and these jobs are being created in China due to a lack of Americans willing to do the work, then there would be no layoffs - correct? You can't be laying people off here and hiring people in China or India when because there is a shortage!

Offshore Tracker (http://www.techsunite.org/offshore/ )is a web site that maintains information about replacement of American job by sending them to foreign countries:

Company Documented offshored jobs
Intel 10426
Microsoft 4572
Motorola 1000

So all three companies, now setting up new engineering and development centers in China have a record of documented elimination of American engineering jobs, despite claiming that they can not find enough Americans to fill such jobs.

The fact is - your government - that you pay for and elect - has economic policies that promote "cheap labor"  for the exclusive benefit of multi-national corporate greed and campaign contributions for corrupt politicians.

When they tell you that it for your own good because there is a shortage of qualified Americans - they are lying to you!

Back to the original issue: What is the long term impact of outsourcing and offshoring?

The steady decline of the international position of our country!

Our country has always taken pride in leading the world in technology. Those days are fading fast. A brief look at our international trade deficit shows that for the last few years we have been running a trade deficit on the category defined as Advanced Technology.

Take a look at the top ten list of outsourcing companies (http://www.techsunite.org/offshore/):

Top 10 Culprits
Company
Most Recent
Jobs Offshored
Est. jobs lost
IBM 11/20/2006
63700
45247
EDS 06/27/2005
22400
7950
Dell 02/01/2007
17450
7100
Cognizant 11/01/2004
15000
data unavailable
Siemens AG 03/02/2004
15000
data unavailable
General Electric 12/20/2004
14250
data unavailable
Convergys 04/13/2005
14000
160
Accenture 06/27/2005
13000
90
Computer Sciences Corp 06/27/2005
10800
5400
Intel 10/01/2005
10426
4126

Just as the entire TV industry step by step moved to foreign countries, imagine the impact of engineering and product development step by step moving to foreign countries. Just like TVs, entire future product lines will be available only from foreign countries.

Empty or non existent facilities do not produce very much and they do not have many employees!

The long term trend is a decrease in standard of living for our country - this includes  your children and grandchildren.

Nothing is going to change until - you the citizens - make changes. As long as you continue sending the same folks back to Congress and your State Legislatures - nothing is going to change!

Some say, "outsourcing is a good thing" - but they say that when it is your job that is sent to a foreign country.

Are you one of those who will not care until it is your job?

The US economy is growing, but only with the infusion of over a trillion dollars ($1,000,000,000.00) of debt a year. The US economy used to grow without the infusion of large amounts of debt, in fact the US economy grew when our country was the word's largest creditor nation.

Coming next - Homeland Security outsources IT development - are you feeling safer?

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Duke University Study Reports China Well-Positioned for Future Science and Technology

SHANGHAI, China and FOSTER CITY, Calif., April 23 /Xinhua-PRNewswire/ -- According to the report recently released in National Academy of Sciences Magazine, based on a Duke University study (http://www.issues.org/23.3/wadhwa.html), China is unique in its rates of graduating engineering and technology Ph.D.s and its ability to perform critical research and development.

Augmentum, a leading provider of value-added software development services, headquartered in Shanghai, China and Foster City, California with additional facilities in Beijing, is living proof of the China success story described in this study. With the ability to select the best and brightest candidates from a huge Chinese talent pool, Augmentum delivers superior business value to enterprise customers. Augmentum's Fortune 500 and rapidly growing startup clients experience higher quality and faster delivery at the lowest realized total costs. Augmentum offers the entire scope of outsourced software services, ranging from full cycle software development and business application development, to complex system integration and solution implementation. Augmentum is committed to becoming the best software services provider in the world. Fortune 500 companies, including Intel, Motorola, and Microsoft, have relied on Augmentum to develop and test their complex software. Augmentum was recently acknowledged for outsourcing leadership in the Booz Allen Hamilton book, Outsourcing Thought Leaders: Managing Business without Borders (http://www.strategy-business.com/oasreader).

"Given the wealth of talented programmers in China, Augmentum has created a Silicon Valley start-up culture that allows employees to embrace projects requiring technical know-how coupled with creativity and innovation," said Frank Yu, President and COO of Augmentum. "Throughout 2006, more than 10,000 people applied for the 500 positions at Augmentum, giving us the chance to choose the most innovative talents for our worldwide developer team. Built on differentiating factors including managerial style, problem-solving skills, customer focus, and an extremely disciplined culture and development process, Augmentum's success is evident in the company's rapid growth and world class customer list."

Augmentum is a sponsor of the Gartner Symposium/ITxpo: Emerging Trends, in San Francisco, CA, April 23-25, located in booth #421.

About Augmentum

Augmentum provides Outsourcing Leadership for Innovation. Augmentum engineers augment their clients' teams as an extension, utilizing leading edge development tools and technologies, as well as proven processes, to create commercial-quality software. The management team has decades of collective experience outsourcing commercial software and solutions. Augmentum, Inc. is headquartered in Shanghai and Beijing in China and in Foster City, California. The company has grown to 800 people in China out of 850 worldwide in three years since its founding and won the inaugural Red Herring Asia Top 100 award in 2005, and the Risk Management award at the China Outsourcing Summit in 2006. For more information, please visit http://www.augmentum.com/ or call (650) 578-9221 x104.

Source: http://www.sys-con.com/read/365023.htm
 

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