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