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View Full Version : 5 reasons why Legislation to limit Outsourcing fails



MrMark
1st October 2010, 18:31
outsourced slinky (http://www.cio.com/article/620842/Five_Reasons_Why_Legislation_to_Limit_Outsourcing_ Fails?source=rss_all)

Ok, so the article talks mainly about the US approach, but it's still depressing reading.

HairyArsedBloke
1st October 2010, 19:03
This is a war that has been well and truly lost.



Five: As Congress debates laws, federal government officials work on trade agreements.

Indian and U.S. negotiators have been meeting in advance of President Obama's visit to India, which is scheduled for right after November election.

The negotiating teams are working toward a totalization agreement (http://www.computerworld.com/s/article/9187281/India_seeks_tax_deal_for_H_1B_workers) , which would exempt Indian firms from having to pay Social Security and Medicare taxes on temporary visa workers.. H-1B visas workers who pay these taxes will never receive any benefit from them unless they become permanent residents. Such a law could cut the firms' H-1B labor costs by up to 14%

The U.S. has similar totalization agreements with mostly other countries, mostly in Europe. The Indian government has also reached agreements with European nations, and expects to sign one soon with Canada. If a similar tax break agreement is reached with the U.S., the overall benefit from this program may more than offset the cost of any increase H-1B visas fees.


There is no way in this space-time continuum that this will ever be over thrown. It is impossible to compete with the Bobs on cost basis.

Governments in the west have made a fundamental and fatal mistake with this policy and it far too late to repair it. In the long run it will all end in tears.

Individuals are fools to fight this. Move on.

Ruprect
1st October 2010, 19:11
The only way is to move into an un-bobbable position/industry. Its why I am no longer a developer.

Cliphead
1st October 2010, 19:17
The only way is to move into an un-bobbable position/industry. Its why I am no longer a developer.

+1

ClientCo tried but I'm still there.

HairyArsedBloke
1st October 2010, 19:30
The only way is to move into an un-bobbable position/industry. Its why I am no longer a developer.

Aye.

AtW
1st October 2010, 19:33
Aye.

It won't help - once sufficient number of people are out of work one or another, then taxes on the remaining working people will make their life not far off those who don't work in the first place preferring to stay on benefits.

Minimum salary requirement is the solution for work visas - in my time (early 2000) it was unofficially £30-35k for a permie job, something that I had at the time, now it should probably be £50k. It should apply to ICT transfers as well.

HairyArsedBloke
1st October 2010, 19:45
It won't help - once sufficient number of people are out of work one or another, then taxes on the remaining working people will make their life not far off those who don't work in the first place preferring to stay on benefits.

Minimum salary requirement is the solution for work visas - in my time (early 2000) it was unofficially £30-35k for a permie job, something that I had at the time, now it should probably be £50k. It should apply to ICT transfers as well.

But as the quote I gave shows, the exact opposite is happening. There is a structural price advantage to using ICTs in addition to the already very low salaries they get in their homeland.

AtW
1st October 2010, 19:57
But as the quote I gave shows, the exact opposite is happening. There is a structural price advantage to using ICTs in addition to the already very low salaries they get in their homeland.

If they are here they should be paid going rate in this country - given that it costs money to bring them here in the first place one would imagine there is high value on them, but it should not be cheap cost - say when I got proper job in UK to my horror it turned out some very good UK employees were paid less than me!!!