{"id":1637,"date":"2010-08-17T10:10:00","date_gmt":"2010-08-17T10:10:00","guid":{"rendered":"http:\/\/localhost\/projects\/horsesforsources\/why-chuck-needs-to-get-the-chop\/"},"modified":"2010-08-17T10:10:00","modified_gmt":"2010-08-17T10:10:00","slug":"why-chuck-needs-to-get-the-chop","status":"publish","type":"post","link":"https:\/\/www.horsesforsources.com\/why-chuck-needs-to-get-the-chop\/","title":{"rendered":"Why Chuck needs to get the chop"},"content":{"rendered":"
\"\"<\/p>\n

Chuck (center) and his selfless buddies strategizing how to stimulate the US economy<\/p>\n<\/div>\n

Senator Charles E. Schumer, not content with ludicrous attempts to <\/strong>tax the US consumer<\/strong><\/a> for taking an offshore call, has continued his personal tirade against the use of offshore services, by pushing through legislation to add a further $2,000\u00a0tax for an H-1B visa application, and $2,250 more for an L-1 visa application.<\/strong>\u00a0 This CIO Magazine\u00a0article<\/a>\u00a0by journalist Stephanie Overby does an excellent\u00a0job discussing the situation.<\/p>\n

You have to wonder about the motives of a US senator,\u00a0who describes Infosys as a “chop shop” and pushes through legislation that is deigned to antagonize service providers, as opposed to what he should be doing: helping to make US service providers become more competitive, and US IT \/ BPO workers more attractive to be hired than those\u00a0offshore.\u00a0<\/p>\n

In terms of creating more US IT jobs, this is a further backward step<\/em> in trying to re-energize the US IT industry for the following reasons:<\/p>\n

1)\u00a0\u00a0\u00a0\u00a0\u00a0 Indian IT services providers will attempt to conduct more IT work offshore \/ outside of the US, whereas in the past they would have conducted the work locally with either a US employee, or an Indian visa holder in the US.\u00a0 Impact:\u00a0 more work moves offshore as opposed to onshore work being created<\/span><\/p>\n

2)\u00a0\u00a0\u00a0\u00a0\u00a0 Indian IT service providers have been investing heavily in hiring onshore staff, and have been creating local employment.\u00a0\u00a0However, the new visa taxes will only help to accelerate the movement of more complex IT work offshore. The Indian providers have a proven successful strategy of taking on complex IT projects and \u201clearning on the job\u201d with their offshore personnel.\u00a0 This new fee will only encourage them to take bolder steps to take more work offshore.\u00a0 Impact:\u00a0 more work moves offshore as opposed to onshore work being created<\/span><\/p>\n

3)\u00a0\u00a0\u00a0\u00a0\u00a0 When Obama was elected and voiced potential moves to slowdown offshoring, several Indian IT providers made investments in locations such as Canada (especially Ontatio) and Latin America.\u00a0 They will now look to leverage these investments more aggressively.\u00a0 This is great news for the developing nearshore IT services markets.\u00a0 Impact:\u00a0 more work moves offshore and nearshore,\u00a0as opposed to onshore work being created<\/span><\/p>\n

4)\u00a0\u00a0\u00a0\u00a0\u00a0 With the global IT services industry poised for consolidation, this may encourage several of the leading Indian IT giants to acquire onshore US firms, now they have more financial incentive to do so \u2013 which would likely have further negative ramifications for the US\u00a0 IT job market.\u00a0 When Indian firms acquire US IT services firms, they will seek to rationalize the existing onshore staff to support their offshore operations, while keeping salary costs at a minimum.\u00a0 Impact:\u00a0 more work moves offshore as opposed to onshore work being created<\/span><\/p>\n

5)\u00a0\u00a0\u00a0\u00a0\u00a0 The US IT and hi-tech industries grew up on bringing talent into the country that added new skills and ability \u2013 and was often more affordable.\u00a0 By further discouraging bring the talent to the states, Schumer and co are driving the next wave of IT development out of the country.\u00a0 Impact:\u00a0\u00a0innovation moves offshore, and more vacant office-lots in Silicon Valley.<\/span><\/p>\n

President Obama has set out to be a transformative president, who can elevate US competitiveness in a global economy and create jobs by intelligent<\/em> fiscal stimulus.\u00a0 He needs to drive policies that will stimulate employment, and stimulate innovation.\u00a0 The economic wonder that became America, was centered on an immigrant society, and attracting talent to these shores.\u00a0 My fear is that policies like Schumer’s are moving the US further away from the very principals with made\u00a0its economy what it once was.\u00a0 The imperative word here is “was”… <\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

Chuck (center) and his selfless buddies strategizing how to stimulate the US economy Senator Charles E. Schumer, not content with…<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[48,81],"tags":[684],"ppma_author":[19],"yoast_head":"\nWhy Chuck needs to get the chop - Horses for Sources | No Boundaries<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.horsesforsources.com\/why-chuck-needs-to-get-the-chop\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Why Chuck needs to get the chop - Horses for Sources | No Boundaries\" \/>\n<meta property=\"og:description\" content=\"Chuck (center) and his selfless buddies strategizing how to stimulate the US economy Senator Charles E. 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