imc indymedia

Los Angeles Indymedia : Activist News

white themeblack themered themetheme help
About Us Contact Us Calendar Publish RSS
Features
latest news
best of news
syndication
commentary


KILLRADIO

VozMob

ABCF LA

A-Infos Radio

Indymedia On Air

Dope-X-Resistance-LA List

LAAMN List




IMC Network:

Original Cities

www.indymedia.org africa: ambazonia canarias estrecho / madiaq kenya nigeria south africa canada: hamilton london, ontario maritimes montreal ontario ottawa quebec thunder bay vancouver victoria windsor winnipeg east asia: burma jakarta japan korea manila qc europe: abruzzo alacant andorra antwerpen armenia athens austria barcelona belarus belgium belgrade bristol brussels bulgaria calabria croatia cyprus emilia-romagna estrecho / madiaq euskal herria galiza germany grenoble hungary ireland istanbul italy la plana liege liguria lille linksunten lombardia london madrid malta marseille nantes napoli netherlands nice northern england norway oost-vlaanderen paris/Île-de-france patras piemonte poland portugal roma romania russia saint-petersburg scotland sverige switzerland thessaloniki torun toscana toulouse ukraine united kingdom valencia latin america: argentina bolivia chiapas chile chile sur cmi brasil colombia ecuador mexico peru puerto rico qollasuyu rosario santiago tijuana uruguay valparaiso venezuela venezuela oceania: adelaide aotearoa brisbane burma darwin jakarta manila melbourne perth qc sydney south asia: india mumbai united states: arizona arkansas asheville atlanta austin baltimore big muddy binghamton boston buffalo charlottesville chicago cleveland colorado columbus dc hawaii houston hudson mohawk kansas city la madison maine miami michigan milwaukee minneapolis/st. paul new hampshire new jersey new mexico new orleans north carolina north texas nyc oklahoma philadelphia pittsburgh portland richmond rochester rogue valley saint louis san diego san francisco san francisco bay area santa barbara santa cruz, ca sarasota seattle tampa bay tennessee urbana-champaign vermont western mass worcester west asia: armenia beirut israel palestine process: fbi/legal updates mailing lists process & imc docs tech volunteer projects: print radio satellite tv video regions: oceania united states topics: biotech

Surviving Cities

www.indymedia.org africa: canada: quebec east asia: japan europe: athens barcelona belgium bristol brussels cyprus germany grenoble ireland istanbul lille linksunten nantes netherlands norway portugal united kingdom latin america: argentina cmi brasil rosario oceania: aotearoa united states: austin big muddy binghamton boston chicago columbus la michigan nyc portland rochester saint louis san diego san francisco bay area santa cruz, ca tennessee urbana-champaign worcester west asia: palestine process: fbi/legal updates process & imc docs projects: radio satellite tv
printable version - js reader version - view hidden posts - tags and related articles

The White Collar Migration - Part 2

by Chris Gaither Thursday, Nov. 06, 2003 at 3:56 PM

US Workers See Hard Times High-Tech Firms Say Outsourcing Crucial To Survival

RAMINGHAM -- Andre Brassard keeps sending out resumes but has largely given up on the profession that employed him for a decade: writing software.



In his old department at Mindspeed Technologies Inc., most of the software engineers are gone. The work Brassard and his colleagues did is now largely done in Ukraine for one-quarter to one-third the cost.



"What has happened to me is irreversible," Brassard said. "It's not like the downturn of 10 years ago. Then it was just bad times."



In the next generation of high-tech companies, entrepreneurs and venture capitalists are making the outsourcing of jobs overseas part of their business plans from the start. Ruthlessly, perhaps, they see outsourcing as the latest innovation in an industry built on innovation.



"Right when you think about Employee 11, you should think about India," said Ravi Chiruvolu, a general partner with Charter Venture Capital, a Palo Alto, Calif., firm that invests in fledgling technology companies. "My view is you should not start a company from scratch in the United States ever again."



Outsourcing is dramatically changing the way companies of all sizes distribute their workers, hitting hard places like Boston, the second biggest tech center behind Silicon Valley. People and companies are forced to adjust, often with great pain, to a fundamental restructuring of America's role in the global technology industry, one creating a sharp division between the people who invent and sell software and those who actually write and maintain those computer programs.



To the surprise of white-collar programmers who thought themselves immune, many of their jobs have turned into "grunt labor" positions exported to India, China, Russia, and other countries and filled with skilled but less expensive workers. IBM Corp., Oracle Corp., Microsoft Corp., EMC Corp., and other high-tech leaders have set up software design and maintenance centers in India, and scores of other large companies have farmed programming work to Indian consultancies.



The Boston economy has gone through enormous transformations before. There was the 1980s defense industry crash, the 20th-century exodus of textile jobs, and the country's western expansion that made the region's farms uncompetitive by the late 1800s.



Each time, Boston survived, innovated, and ultimately thrived. Economists disagree on what will happen this time and when. Locally and nationally, it's clear right now that the economy is growing rapidly but job growth is not.



Proponents of outsourcing say the brilliant ideas that fuel new companies will continue to emerge and win venture capital in the United States. Start-ups will still incorporate in the United States with hopes of winning American customers and going public on the Nasdaq stock exchange. But after the first few employees create a technology and a plan for selling it, the costs of readying that technology for the marketplace will force young companies to think globally.



A prime example of the new tech model: Lumenare Networks, a Sunnyvale, Calif., company that creates programs for testing complex software, network equipment, and data storage systems. Lumenare was on the verge of shutting down under heavy debt in early 2001. When the board hired new executives to rescue the company, one of their first moves was to fire 12 contractors writing software code for 0 an hour and replace them with a team of Indian programmers earning to an hour in Noida, a suburb of New Delhi.



Within a few months Lumenare was saving so much money that Phillip Cavallo, the chief executive, moved all software development and maintenance to India, despite resistance from some of his upper-level managers. He laid off 30 American programmers in Sunnyvale and hired replacements in Noida.



"Software engineers - India produces about a million of them a year - are a commodity," Cavallo said in a phone interview from India, where he was visiting employees and trying to sell software to Indian outsourcing firms.



Today 35 coders work in Lumenare's office in India, writing new software and testing it. In the Sunnyvale headquarters, which once employed 45 people, only 15 Lumenare employees remain: Cavallo and other executives, some accountants, the sales and marketing team, program managers who install the software for US clients, and engineers.



"I don't think the company would be here if we hadn't made these moves," Cavallo said.



The high-tech industry is legendary for booms and busts that produce millionaires and then pink slips. But losing jobs overseas was once a problem reserved mostly for blue-collar workers. The Internet boom, which at first sparked an employment surge in the United States, also created the means for a white-collar variety of offshore outsourcing. Information became increasingly digital. Faster and more pervasive Internet connections enabled anyone sitting at a computer, anywhere in the world, to do much of the same work as an American.



"I thought I was safe," said Janice Johnson Kuhl, a software engineer in Mill Valley, Calif., who until the work dried up two years ago, designed computer systems for two decades as a consultant for Visa International, Providian Financial Corp., and the California State Automobile Association.



Since then, Kuhl found only one monthlong contract, and that was for investigating why a million programming job outsourced to a major Indian consulting firm was million and 18 months overbudget, she said.



"War on Nerds" is how Keith Scruggs, a 38-year-old unemployed developer, described it on a picket sign he carried at a Concord, Calif., antioutsourcing Labor Day rally. About 30 software coders, dressed in Silicon Valley's rumpled uniform of jeans, T-shirts, and Hawaiian prints, sipped bottled water and exchanged pleasantries under the Northern California sun. Then the techies picked up their picket signs and began shouting for three hours outside Bank of America headquarters, decrying the company's use of foreign programmers to do work Americans once did.



Gartner Inc., a Stamford, Conn., research and consulting firm, estimates that 10 percent of all the jobs at US information-technology vendors and service providers and 5 percent of all tech jobs in more general companies will shift offshore by the end of next year. Fewer than 40 percent of American workers who lose their jobs to outsourcing will find work within the same company, Gartner forecasts.



Brassard has been trying to latch onto any tech company since Mindspeed, a California maker of networking chips with local offices in Westborough, let him go from his job writing testing software on Jan. 19, 2002.



"I can't even get replies on applications, let alone interviews," he said. "It's that tough."



Because of his wide knowledge of computer languages, Brassard once thought he was indispensable. He has since become certified as a tennis instructor and enrolled in a real estate appraiser training program.



Mindspeed hired ArrAy Inc., an outsourcing company based in Westborough, which shipped most of the work to the Ukraine. ArrAy now employs 40 programmers in Westborough and 60 total in the Ukraine and Russia. The company is exploring an expansion into China and Bangladesh.



"In order to stay competitive in the business we've built at ArrAy, we have to have offshore capabilities," said Charlie Palmer, ArrAy's CEO. "That's troublesome to me as an American citizen."



Still, there are many benefits to outsourcing. A recent report by management consultant McKinsey & Co. said outsourcing helps US companies become more profitable and cut prices to consumers, as well as boost the export of equipment and software to the developing countries doing the outsourcing work. "Unless we pander to protectionism, there is no good reason to believe that our dynamic job-creating economy cannot absorb the level of change" posed by outsourcing, the report said.



Just not immediately. Marc D. Lewis, president of Morgan Howard North America, a job placement firm, said software coders used to making ,000 or more a year will have to learn newer programming languages to stay employed.



"The new jobs creation in this country will stem from intellectual property gains and creativity and better uses of human and machine intelligence," he said.



The invention of new applications, installation, and customization of new systems, and sales and marketing will stay in the country, said former Labor secretary Robert B. Reich.



"These are the jobs that cannot be done by specialists on other sides of the world," said Reich, a 2002 gubernatorial candidate in Massachusetts. "When we get out of this jobs recession, there will be a large and growing number of technological specialties available to Americans."



- Chris Gaither can be reached at gaither@globe.com



© 2003 The New York Times Company



http://www.boston.com/news/nation/articles/2003/11/03/us_workers_see_hard_times/

Report this post as:

Local News

Why Should California Choose De Leon Over Feinstein? O10 9:55PM

Change Links September 2018 posted S02 10:22PM

More Scandals Rock Southern California Nuke Plant San Onofre A30 11:09PM

Site Outage Friday A30 3:49PM

Change Links August 2018 A14 1:56AM

Setback for Developer of SC Farm Land A12 11:09PM

More problems at Shutdown San Onofre Nuke J29 10:40PM

Change Links 2018 July posted J09 8:27PM

More Pix: "Families Belong Together," Pasadena J02 7:16PM

"Families Belong Together" March, Pasadena J02 7:08PM

Short Report on the Families Belong Together Protest in Los Angeles J30 11:26PM

Summer 2018 National Immigrant Solidarity Network News Alert! J11 6:58AM

Watch the Debate: Excluded Candidates for Governor of California M31 5:20AM

Change Links June 2018 posted M28 7:41AM

The Montrose Peace Vigil at 12 Years M22 8:01PM

Unity Archive Project M21 9:42AM

Dianne Feinstein's Promotion of War, Secret Animal Abuse, Military Profiteering, Censorshi M17 10:22PM

CA Senate Bill 1303 would require an independent coroner rather than being part of police M10 9:08PM

Three years after OC snitch scandal, no charges filed against sheriffs deputies M10 8:57PM

California police agencies violate Brown Act (open meetings) M02 8:31PM

Insane Company Wants To Send Nuke Plant Waste To New Mexico A29 11:47PM

Change Links May 2018 A27 8:40AM

Worker-Owned Car Wash on Vermont Closed A27 5:37AM

More Local News...

Other/Breaking News

Apocalypse capitalisme O20 7:45AM

Stress, réaction organique à l'agression O19 6:59AM

Elder Aliyah to Israel, Like Abraham and Sarah O18 6:35PM

Politoscope plurivalent O17 6:59AM

Paraphysique du microcosme macrocosme O15 6:44AM

September 2018 Honduras coup update O15 3:31AM

The Nation Unites Against Brian Kemp, Most Racist Secretary of State in US O14 7:34AM

The Nation Unites Against Brian Kemp, Most Racist Secretary of State in US O14 7:23AM

Paraphysique de l'ubérisation O13 7:56AM

22 Ways Trump Has Increased US Deficit By 4 to 5 Trillion Dollars O12 10:34PM

Debunking Some Anti-Prop 10 Propaganda O12 6:56AM

Plus d'hôpitaux, à bas les aéros O12 6:38AM

When Banana Ruled (documentary) O11 3:00AM

Outstanding Report By RAMOLA D &Dr.Tomo Shibata O10 9:17PM

Dark Clouds Gather on Horizon for Financial System, Warns International Monetary Fund O10 1:51PM

Fbi pure evil & immorality O10 5:39AM

Reality Check: Palestinian-Israeli Coexistence is a Big Lie O09 7:40PM

Voiceless Animals: 2018 Candidates They Oppose O09 7:01PM

IMF Lowers Global Growth Projections and Raises Concerns of Financial Crisis O09 3:27PM

Canitie, l'inhumanité vieillit O09 7:13AM

L'anarchie en quelques exemples O07 6:50AM

100 Ways GOP Have Stolen Elections Since 1876 O06 12:03AM

Proximospective de l'univocité réifiée O05 6:27AM

“Kava-no!!!” O04 6:42PM

Trump & Palestine vs. Genesis, Rashi & The Land of Israel O03 6:29PM

The Criminality of the Elites O03 11:35AM

Business de l'inhumanitaire O03 7:51AM

Marriage Rape/Date Rape Highest Rapes O02 2:59PM

More Breaking News...
© 2000-2018 Los Angeles Independent Media Center. Unless otherwise stated by the author, all content is free for non-commercial reuse, reprint, and rebroadcast, on the net and elsewhere. Opinions are those of the contributors and are not necessarily endorsed by the Los Angeles Independent Media Center. Running sf-active v0.9.4 Disclaimer | Privacy