| General Motors Corp. announced in late November | | | | foreign workers to come to the U.S. But critics believe |
| 2005 that it will close 9 of its United States auto | | | | that Gates and other industry executives are not being |
| manufacturing plants as well as three assembly-related | | | | honest in their assessments, to wit, the banking |
| plants which includes one location in Canada. Ford | | | | industry's India strategy which is hiring finance |
| Motor Co. followed suit in early December 2005 | | | | graduates and not computer science graduates in |
| announcing it is considering the shutdown of up to 8 of | | | | expanse of their industry.In fact, consultants such as |
| its U.S. manufacturing plants, including engine and | | | | Stefan Spohr of AT Kearney estimate that |
| assembly operations, with one in Mexico. Americans | | | | investment banks could raise their staff levels in India |
| are well familiar with the downsizing, outsourcing and | | | | to as much as 20% in the next few years. Since |
| offshoring of the U.S. manufacturing base which has | | | | salaries in India are 70-80% lower than in the U.S., with |
| seen 2/3 of its jobs lost in the past 20 years, having | | | | total costs about 40% lower than in the U.S., the trend |
| been traded in for third world cheap labor. And while | | | | of offshoring will no longer exist. Rather, jobs will now |
| white-collar workers have hardly been immune from | | | | originate from India and totally bypass the U.S.Disputing |
| offshoring practices infiltrating boardrooms, indication | | | | the fact that there are not enough quality candidates, |
| this week is that the tide has changed.Both the Intel | | | | for example, in the computing engineering field, is the |
| Corp., the world's largest computer chip manufacturer, | | | | change in the way in which U.S. engineers are hired. |
| as well as J.P. Morgan Chase & Co., one of the world's | | | | Candidates are not only competing with their peers but |
| largest financial institutions and 2nd largest in the U.S., | | | | also with the fear that they will be replaced by either |
| are investing in creating new jobs in India over the next | | | | imported foreign workers or offshore workers, even |
| few years rather than in the U.S. Different in prior | | | | after they are hired.Companies are directly contributing |
| offshoring scenarios, however, is that back-office jobs | | | | to the supposed engineering shortage themselves by |
| such as investment banking, software engineering and | | | | requiring that an applicant meet every item on a |
| research and development, previously occupied by | | | | detailed list of qualifications. Transfer of like-skills is a |
| American workers, will now originate from India as | | | | long lost concept. With approximately 200 responses |
| well.J.P. Morgan plans to locate 1/3 of its investment | | | | for every job listing, companies have the luxury to hold |
| banking and support staff in Bangalore, India by the | | | | out until they get the perfect candidate, as job cuts in |
| end of 2007. It will double the amount of its employees | | | | technology positions are up 20% in the past year, |
| by hiring 4,500 graduates over the next two years. | | | | according to Challenger, Challenger, Gray & Christmas. |
| 3,000 of the new hires will work in investment banking | | | | The unemployment rate for computer programmers |
| with 1,500 providing support in its retail and commercial | | | | and engineers is higher than the national average |
| banking operations. There are presently 4,500 | | | | which does not reflect those who remain unemployed |
| employees in front-office staff positions in Mumbai, | | | | in Silicon Valley as they no longer register for |
| India.With only 200 on staff in India just two years ago, | | | | unemployment benefits, nor those who were forced to |
| in order to achieve their latest goal, J.P. Morgan will hire | | | | move on to other careers.According to Veronique |
| between 300-400 graduates a month in order to have | | | | Weill, head of operations at J.P. Morgan's investment |
| 9,000 total positions in front and back-office positions | | | | banking division, "The quality of the people we hire is |
| by 2008, which includes complex derivatives | | | | extraordinary and their level of loyalty to the company |
| settlements and structured finance transactions. The | | | | unbeatable," when referring to the hiring of employees |
| remaining approximately 4,000 - 4,500 employees J.P. | | | | in India. Funny, but that's what used to be said about |
| Morgan employs will be divided between Bournemouth, | | | | American workers. Perhaps the American worker's |
| England and New York, NY, although the ratio | | | | biggest error was requiring a decent wage for quality |
| between both countries was not disclosed.Similarly, Intel | | | | work done. And others would argue that maybe it |
| will invest $1.1 billion in India over the next 5 years, with | | | | was their expecting U.S. companies would prefer them |
| $800 million dedicated specifically for research and | | | | over foreign labor. Tragically, greed, under the guise of |
| development operations and other projects including | | | | a global economy was the error, committed not by |
| chip design, also in Bangalore, according to Chairman | | | | U.S. workers but by U.S. CEO's, and condoned by the |
| Craig Barrett. Although Intel will also explore expanding | | | | U.S. government.Copyright (c) 2005 Diane M. |
| its manufacturing prospects in India, its present | | | | GrassiDiane M. Grassi is a freelance columnist, |
| investment will largely be for more complex high-value | | | | reporting and writing commentary on current events of |
| work as opposed to just technical support and | | | | the day providing honest and often politically incorrect |
| call-center jobs, which most IT firms offshore | | | | assessments.From U.S. public policy to Major League |
| today.Other firms following this latest trend are Cisco | | | | Baseball, she is an eclectic thinker, and demanding of |
| Systems, the world's largest maker of internet | | | | her readers to reflect on their own thinking patterns |
| equipment, which announced in October 2005 that it | | | | from an alternative perspective. Whether you agree |
| would invest $1.1 billion in India, tripling its work force to | | | | with her or not, Diane M. Grassi will have you coming |
| more than 4,000 from 1,400 in the next three years. It | | | | back to note her opinions, and if at best she wakes |
| too will have research and development located in | | | | you up, then her goal will have been accomplished.Ms. |
| Bangalore. And it is likely that more of the banking | | | | Grassi is featured with the online publications: The New |
| industry will soon follow J.P. Morgan's lead such as | | | | Media Journal; American Chronicle; the Federal |
| Goldman Sachs & Co. which may double its staff to | | | | Observer; Opinions Editorials; the Conservative Voice; |
| 1,500 in Bangalore.Microsoft Chairman Bill Gates is | | | | the Las Vegas Penny Press; Mich News; the Sierra |
| expected to invest $400 million in Hyderabad, India | | | | Times as well as several others. She also writes |
| where he plans to hire several hundred workers. | | | | regular columns on Major League Baseball where she |
| Gates has been outspoken, with his statement in April | | | | is a featured online columnist with The Diamond Angle |
| 2005, citing that there were not enough U.S. college | | | | Baseball Ezine and Sports-Central.org. She can be |
| students majoring in computer science, and thus wants | | | | reached at . |
| to expand the H1B Visa program, allowing more | | | | |