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November 2001, Week 3

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Subject:
From:
Jerry Leslie <[log in to unmask]>
Reply To:
Jerry Leslie <[log in to unmask]>
Date:
Thu, 15 Nov 2001 12:00:58 -0600
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Andreas Schmidt ([log in to unmask]) wrote:
: Folks,
:
: like all of you, I'm VERY disappointed by HP's [CSY] decision to bring one
: of their success stories to an unexpected end.
: But we are faced with hp invent, and no longer with Hewlett-Packard.
:
: Having worked for Hewlett-Packard about 10 years ago I must admit that the
: culture has changed - based on my close contacts I still have.
: One point is which influences this decision: hp mgt. has changed the
: culture. This does not mean that the HP people you and I work with have
: changed their mind. But hp needs to look to the market. It looks alike that
: hp mgt. is no longer interested in a loyal small market but want to get
: money out of the global market, regardless what the cost is in reputation
: within a small group -us! This behaviour is only allowed for a global
: player having some monopolies (like Micro$oft). So hp seems no longer
: interested in the small MPE market.
: That's new in hp's way and completely different to the old HP way.
:
The first event that indicated HP was globalizing was a "60 Minutes"
segment on their use of H-1B visa holders through contract job shops.
The transcript of that segment is available at:

   http://www.zazona.com/ShameH1B/Library/Archives/60Minutes.htm
   CBS News "60 Minutes" October 3, 1993 'North of the Border' Lesley
   Stahl Reporting

  "LESLEY STAHL: Those who oppose NAFTA, the North American Free Trade
   Agreement, argue that it will encourage American companies to go south
   of the border to replace American workers with cheap, foreign labor.
   Fact is, our government is already encouraging American companies to
   do ostensibly that, not south of the border--right here, north of the
   border, in the good old US of A. At a time when thousands of American
   computer programmers are having a tough time finding work, some of
   America's biggest companies are hiring cut-rate, foreign programmers
   to take their jobs..."

That was also my first exposure to the H-1B visa program. Hmmm, the last
part of that sounds like it could have been written today, since HP is
one of the largest employers of H-1Bs.

Now HP has opened up an operation in China with 1500 workers, while
"derecruiting" employees here, as part of the Great Tech Wreck.

The layoffs notices keep piling up world-wide, in all industries, but
especially in the IT industry, which some say is in a depression:

   http://www.msnbc.com/news/555872.asp
   The Layoff List

   http://www.dotcomscoop.com/
   Dotcom Scoop: Business news, rumors, gossip & commentary

   http://216.150.6.70/
   F**kedCompany.com - Official lubricant of the new economy

   http://www.doomdujour.com/1downsiz.htm
   Downsizings - the beat(ing) goes on...

While companies like HP, Microsoft, Intel, set new records for H-1Bs:

   http://www.computerworld.com/storyba/0,4125,NAV47_STO65124,00.html
   Despite Economy,  H-1B Visa Record Set | Computerworld News & Features Story

Then there's the offshore IT industries,who will work for less than
a survival wage in the US:

   http://www.msnbc.com/news/651971.asp?cp1=1
   Go Global, Young Man!

Check out the rates that these companies are bidding on C++ jobs:

   http://www.elance.com/c/rfp/main/jobInfo.pl?jobId=5714346&catId=10182

This Russian group charges $7-10 US, per their USENET posting, for IT work:

  http://www.pilotgroup.net
  :: PILOT_GROUP :: IT - Solutions

When there is a recovery in the global economy, there may not be much of
a domestic IT industry left.

If that sounds impossible, when's the last time you saw a new TV set for
sale that was made in the US ?

--Jerry Leslie     (my opinions are strictly my own)

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