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