Posts Tagged ‘U.S’

Top Democrat says U.S. Chamber agenda is outsourcing jobs

October 12th, 2010

A top Democrat on Tuesday said the U.S. Chamber of Commerce’s “agenda” is to send U.S. jobs overseas.

“The Chamber has an agenda, and it’s aimed at promoting outsourcing of American jobs, and spending money against those who stood against them,” said Jon Vogel, executive director of the Democratic Congressional Campaign Committee (DCCC0.

Vogel made the comment at a forum hosted by National Journal, which included his Republican counterpart, Guy Harrison, executive director of the National Republican Congressional Committee.

Upon hearing Vogel’s comment, Harrison pounced.

“Wait, wait, wait, wait. The Chamber’s agenda is outsourcing U.S. jobs. The U.S Chamber of Commerce? I just want to make sure,” Harrison said.

Vogel and Harrison talked back and forth for a moment as the audience tittered. Vogel made reference to comments by the Chamber’s chief executive, Tom Donohue. A DCCC spokesman has not yet responded to an e-mail asking for what Vogel was referring to.

But it is likely that Vogel was criticizing the Chamber’s opposition to legislation called the “Creating American Jobs and Ending Offshoring Act.”

According to OpenCongress.org, the bill “would give companies a two-year payroll tax holiday, reducing the amount of Social Security taxes they would have to pay, for new employees who replace workers doing similar jobs overseas.”

“It also revokes provisions of the tax code that Democrats say encourage companies to outsource their work force.”

The Chamber said in a Sept. 23 letter to U.S. Senators that “the concept of economic growth is not a zero-sum game.”

“Replacing a job that is based in another country with a domestic job does not stimulate economic growth or enhance the competitiveness of American worldwide companies,” said the letter from R. Bruce Josten, the Chamber’s top lobbyist.

Josten urged senators to extend all of the Bush tax cuts instead, maintaining that the U.S. business community has expressed a preference for the cuts as a way to stimulate economic growth.

At the forum, Harrison continued to mock Vogel’s comment.

“We have jumped officially the shark,” Harrison said, as the audience laughed. “If you wonder why people think Democrats are anti-business. Thank you.”

Vogel tried to salvage his point by distinguishing between the national Chamber and its affiliates around the country.

“I think you need to separate the local chambers who have endorsed our candidates from the U.S. Chamber,” he said.

Vogel’s comment came in the midst of his accusation that outside groups spending money on TV campaign ads for Republicans have the wrong values and priorities.

“If you look at the groups who are spending money … it kind of delineates the clear difference between the two parties,” Vogel said. “We have a group called 60 Plus that is spending millions of dollars. The group 60 Plus is funded by insurance companies who have made billions off of privatizing Medicare. So there’s an agenda behind their ads.”

Source:http://dailycaller.com/2010/10/12/top-democrat-says-u-s-chamber-agenda-is-outsourcing-jobs/

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EVOX Opens U.S. Division in Austin, TX

October 12th, 2010

EVOX, the leading provider of I.T. and telecommunications solutions in Mexico, today announced that it has opened a U.S. division in Austin, Texas. The U.S. unit named, EVOX IT, will now be able to offer U.S.-based companies with operations in Mexico and Latin America its services including remote infrastructure management (RIM), on-site I.T. and telecom support and telecom expense management (TEM).

The U.S. office will be headed by EVOX founder and vice president, Javier Priego, who has more than 20 years of telecommunications consulting experience. Under his leadership, EVOX has grown to become the market leader in providing telecommunications solutions in Mexico. Some of its clients include Nextel, Grupo Modelo (Corona Beer Brewing Co.), Chrysler, EDS, Telmex among many others global companies. EVOX is also certified channel partner of Avaya, Tandberg and Cisco in Mexico.

“EVOX has been growing rapidly the past few years due to the demand for outsourcing I.T. and telecommunications services by multinational corporations,” said Javier Priego. “I’m excited to lead EVOX IT and assist U.S. companies increase their business performance at the same time cut their operational costs.”

Remote Infrastructure Management is an industry growing at a 20% annual rate. According to Gartner, the U.S. RIM market is expected to reach up to $12 billion for 2010, and $16.7 billion for 2012.

EVOX IT is the U.S. division of EVOX, the leading I.T. and telecommunications solutions provider in Mexico. EVOX IT provides remote infrastructure management (RIM), on-site I.T. and telecom support, and telecom expense management (TEM) for U.S. companies with operations in Latin America.

Source:http://www.marketwire.com/press-release/EVOX-Opens-US-Division-in-Austin-TX-1333265.htm

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Union unveils database that tracks outsourcing of U.S. jobs

October 8th, 2010

The AFL-CIO and its community affiliate group, Working America, on Thursday unveiled a massive database that details companies outsourcing U.S. jobs.

Drawing upon government data, the Job Tracker database lists information on more than 400,000 corporations and subsidiaries that have sent jobs overseas, run afoul of health and safety codes or violated labor law.

The labor federation used the Freedom of Information Act to request government documents like Trade Adjustment Assistance records, Worker Adjustment and Retraining Notification Act notices and Occupational Safety Health Administration records to come up with the database.

Once it was all compiled into the database, the information became searchable for users by company name, industry and ZIP code to show how their neighborhood has been affected by outsourcing.

“As outsourcing has expanded, wages have stagnated and wealth has become concentrated,” AFL-CIO President Richard Trumka said on a conference call with reporters.

“While other nations implement strategic industrial policies to strengthen their technological capacity and manufacturing base, U.S. policies have encouraged U.S. manufacturers to offshore.”

Calling it “an important tool,” Trumka said the database will help get concrete information in citizens’ hands on what companies are outsourcing.

It is also designed to put pressure on lawmakers to change U.S. tax and trade policies in support of American industry.

The union leader noted recent Republican votes in Congress against bills intended to end China’s currency manipulation and close tax loopholes for companies shipping jobs overseas as examples of lawmakers not stopping outsourcing.

“This is a chance for us to make that issue even stronger and demand that politicians try to find solutions instead of walking away from the problem,” Trumka said.

Source:http://thehill.com/blogs/on-the-money/801-economy/123249-unions-unveil-database-that-tracks-us-jobs-outsourcing

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India Inc happy about defeat of anti-outsourcing bill in US

September 29th, 2010

A relieved that lobbied hard against anti-outsourcing campaign in the US hailed the Senate Republicans for blocking the bill that denied to US companies moving jobs offshore.

The defeat of the bill comes a week after a Nasscom delegation comprising representatives of top IT companies such as Infosys, Wipro and TCS visited the US and lobbied with the key Congressmen and corporations.

“We welcome the move. The anti-offshoring bill was more of an electoral rhetoric. We had met the Congressmen, key Government officials and American industry last week and expressed our concerns against the protectionist measures,” Nasscom Vice-President Ameet Nivsarkar said.

The mid-term Congressional elections due in November and the high unemployment rates have triggered a spate of protectionist moves by the US government.

As part of efforts to boost employment in the US, President Obama is vigorously pushing to end the tax breaks for companies, which ship jobs overseas saying they should go to firms who create jobs in America. The Obama administration has also recently hiked fee for professional visas, hurting interests of the Indian IT industry.

FICCI Secretary General Amit Mitra said,”We believe that the majority of has kept in mind the larger interest of the US economy, its corporations and global economy”.

Opposition from several US business groups, including the National Association of Manufacturers (NAM), to the bill showed that these groups realised that such measures would only hurt the competitiveness of US companies.

Assocham President Swati Piramal said the anti-outsourcing bill was against free trade and a non-tariff barrier. “Offshoring creates job opportunities” for both the countries-those which outsource and the suppliers of services.

Ganesh Natarajan, the chairman of the CII national committee on IT and the CEO of Zensar Technologies said, “Unemployment is a concern in the US. But they should understand that any protectionist barrier will deepen the recession. This kind of measures will not help create job in the US.”

Source:http://economictimes.indiatimes.com/news/news-by-industry/services/travel/visa-power/India-Inc-happy-about-defeat-of-anti-outsourcing-bill-in-US/articleshow/6652387.cms

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U.S. Chamber comes out against Senate outsourcing bill

September 25th, 2010

The U.S. Chamber of Commerce on Thursday announced its opposition to Senate legislation providing a payroll tax holiday to U.S. multinational companies that shift overseas jobs to the U.S.

The bill, Creating American Jobs and End Offshoring Act, grants a two-year payroll tax holiday for companies that take on new employees who perform services in the U.S. that were once done abroad. The Chamber deems the provision a “zero sum game” when it comes to boosting economic activity internationally.

“Replacing a job that is based in another country with a domestic job does not stimulate economic growth or enhance the competitiveness of American worldwide companies,” wrote Chamber executive vice president Bruce Josten in letter to senators.

The bill also restricts the use of deferral, which allows companies to postpone paying taxes on foreign income until those funds are transferred to the U.S. The Chamber opposes this limitation.

“Limiting deferral would hinder the global competitiveness of these American companies, impede U.S. economic growth and ultimately result in the loss of jobs — both at the companies directly impacted and companies in their supply chain.

Source:- http://thehill.com/blogs/on-the-money/domestic-taxes/120667-us-chamber-comes-out-against-senate-outsourcing-bill

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Indian IT Firms Aim to Increase U.S. Hiring

September 23rd, 2010

Indian information technology companies Infosys Technologies(INFY_) and Tata Consultancy Services are taking steps to offset the impact on their business of changes in government policy in the U.S.

Both companies say they’re stepping up hiring of employees in the U.S. in the wake of the Ohio government’s ban on offshoring and the U.S. visa fee hike.

Infosys CFO V. Balakrishnan, says his company is increasing localization and deploying more employees at a client’s site instead of doing that work in India, according to report in Times of India. Meanwhile, S. Mahalingam, CFO Tata Consultancy Services, was quoted saying, “Local recruitments appear to be the most viable option as of now.”

Recruiting local workers at their U.S. offices is a wise strategy for Indian IT firms, because it will assuage resentment about the outsourcing of U.S. jobs, say industry analysts.

Indian IT firms are making localization efforts in other countries in the Americas, too. In March 2010, Patni Computer Systems(PTI_) launched its new state-of-the-art IT business center in Mexico to serve as the hub for the company’s expansion efforts in the Latin American markets. Patni is seeking to build regional delivery centers that leverage the talent of local communities.

Meanwhile, Girish Paranjpe, co-CEO Wipro Technologies,(WIT_) says his company “has long-term strategies for global markets and it will not react abruptly or think differently based on individual events, statements or a temporary environment,” according to the Economic Times. Paranjpe says 38% of Wipro’s employees outside India are local hires and the company plans to raise this percentage to 50%. Wipro has increased local hiring in the U.S. since the recession began and has set up a center in Atlanta for creating local jobs.

John McCarthy, vice president at Forrester Research, says, “There is no reason for India to react hysterically to what the U.S. government is doing,” according to the Times of India. He adds that the increase in visa costs will have a very insignificant impact on profits and, viewed broadly, will not change IT industry economics.

McCarthy believes there is more room for Indian IT firms in the U.S. and that those firms should adopt a glass-half-full strategy toward the U.S. and not a glass-half-empty one.

Source:http://www.thestreet.com/story/10869589/1/indian-it-firms-aim-to-increase-us-hiring.html

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Ohio governor defends outsourcing ban in letter

September 22nd, 2010

Ohio Gov. Ted Strickland is defending his ban on overseas outsourcing of state services in a letter to the U.S. trade representative.

The letter to Ron Kirk comes as the U.S.-India Trade Policy Forum is being held in Washington.

Indian government officials have said the Ohio ban violates a commitment made by the Group of 20 countries to fight protectionism.

Strickland says it doesn’t violate any trade agreement with India.

The order prohibits any Ohio cabinet agency, board or commission from signing a contract that uses funds it controls to purchase services outsourced to other countries.

Strickland signed the executive order last month after federal stimulus money went to a company that outsourced work to an overseas call center in El Salvador.

Source:http://www.businessweek.com/ap/financialnews/D9ICVUS00.htm

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