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US outsourcing to Canada, secures employment for Canadians

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As a follow up to all the outsourcing rage that has been shown here, I read the following in Computing Canada today.

“Outsourcing firm Keane Inc. has announced a recruitment drive to fill 175 IT jobs over three years as it’s Halifax Advanced Development Center.

Keane will get up to $1.5 million in payroll rebates from the Nove Scotia government, provided it creates and maintains the 175 jobs.”

It goes on to say that Canadian IT staff will accept lower pay and therefore canadian companies are ore lucrative for US companies.

East coast Canadians will work for less, thier cost of living is substantially lower than the western provinces of Alberta or BC.

So there are a few ways I see this, positive and negative.

Positive, it is giving Canadians jobs. Halifax’s economy will improve over time.

Negative, US employers are giving YOUR jobs to us because they have more interest in money than in the US economy or supporting it’s citizens.

Good for some, including the company that is outsourcing but bad for America as it creates a sense of disloyalty toward big business (America thrives upon big business).

Is this an example of the capitalism that makes the US so important?

Is it perhaps that as in all aspects of being American, having all the money is the bottom line?

I can’t see it being due to unqualified local staff, you guys know a lot more than I do about computers. I can’t see it being due to quality assurance, your people can understand one another while Canadians would be like calling Japan for help desk support.

Topic

Penny wise / pound foolish

In reply to US outsourcing to Canada, secures employment for Canadians

Any company intending to outsource on grounds of cost savings will bypass this offer on the way to Delhi.

1.5 million divided by 175 jobs is a ~$8,600 per job carrot. Say a canuck were willing to do the job for $30,000 /yr. This position will still cost around $30,000 with benefits and taxes.

Offshoring will cost 1/3 of that amount per job.

Not nearly enough carrot…

Offshoring is not a capitalism problem, it is a purchasing problem. If I will bypass a product with a “Made in USA” sticker for its “made in China” counterpart for 10 percent less, then I have no right to be outraged when my neighbor buys a software package coded in India, hurting my counterparts here.

caveat emptor….

Grand assumption

In reply to Penny wise / pound foolish

IT staff in the Maritimes will work for a LOT less than $30,000. Thats why they chose an Esatern province. Om the West, IT is strong as we have a large commerical district. In the Maritimes, fishing and farming have always been the main trades. IT is in low demand so the salaries would be closer to the $22,000 mark.

This then brings the company cost closer to the $14,000 range and much more appealing, especially with NAFTA and close proximity for shipping and support.

Your point was clear but your assumption of the salary I think is a little high for that area.

low salary

In reply to Grand assumption

If I were a Nova Scotia fisherman or farmer turned programmer I would get experience with the $14,000 job then send my CV to firms in Quebec, Ontario and BC for a $30,000 post. And maybe risk losing social benefits by sending it to US firms too, for een higher wages. Of course, Keane, being an agency, may be hoping for just that. And Keane’s getting government subsidy for this?

risk losing social benefits by sending it to US firms too, for een higher w

In reply to low salary

From what I’ve seen at TR, we actually are higher paid in BC for the same IT tasks as in the USA. Out cost of living is higher but I find people with even greater experience than I earn about half my wage. The cost of living and difference in the dollar doesn’t make that equal.

I have run business in the US due to the lower salary expectations, I have also turned down more than one opportunity in the US to perform more wprk, assume more responsibility and get paid much less than current.

I currntely work at home for two contracts ($64,000 and $23,000 respectively)and some freelance work, my contracts alone equate to well over $87,000 yr, and that is for standby Network admin support. I would be amazeed if the same income opportunities were available for someone with my experience ANYWHERE, yet alone the USA.

A poor paying labour job, cleaning up forms after cement pour, cleaning up building sotes etc. pays on average $17.00/hr in BC. I don’t know if national stats reflect that but the workers and even temp labour personell get paid $17-$24/hr with no skills other than an eagerness to work.

Granted MANY think Canadians get FREE medical and we don’t, we all pay monthly premiums dependant on your income level (up to the maximum of course). We pay higher taxes and our money is worth less, although beter these days. The truth is that even with more expenses, taxes and monetary value taken into account, everyone I know makes great money, regardless of industry or career level.

What exactly does American business expect to do…

In reply to risk losing social benefits by sending it to US firms too, for een higher w

…when all American workers are unemployed and there’s no one left to purchase their cheaply made products? Sure the Canadians can afford them but Canada is the exception and has only a tiny fraction of the world’s consumers. Most offshoring is in populous, developing countries like Malaysia. For the most part factory workers there make a decent salary, considering how low the cost of living is, and, IMO, cries of “exploitation” are a bit off the mark. Nonetheless, you can be sure that the Malaysian cost of living index does NOT include designer sneakers!

Its an example of greedy corporate executives

In reply to US outsourcing to Canada, secures employment for Canadians

Company management is only interested in making money for themselves. The savings does not trickle down, it is kept in a big fat bonus and perks for them.

Corporate management has no integrity or humanity. Thats not how this country became great many years ago.

Our government lies to us and so do corporate managers. They are outsourcing because it is (short term) cheaper labor costs and it means a bigger bonus for them. What do they care if outsourcing doesn’t work 2 years down the road for the company they are at? They get their bonuses in the meantime and a golden parachute on the way out the door, even if the company is failing. They can’t lose – everyone else does AND our government looks the other way and pretends it isn’t happening.

I’ve been in the IT industry as a Net Admin for 20 years and am disgusted at the lack of humanity exhibited at most of our corporations.

A Net Admin has to work hard and give up a lot when needed, holidays, etc., many times for no compensation because you are salaried. You know how it is if you are a Net Admin. To then be given a box to clean your desk out and escorted out of the building by security because your job is being eliminated after many years of loyal service is absolutely wretched. Or, to be eliminated because your job is moving overseas and management gets a bonus for supposedly saving money, but you won’t get any severance unless you train your replacement (I thought they were supposed to know the job already). What a crock!

And even more despicable, they will lie about why they are outsourcing. You hear how India or wherever is more educated, more highly skilled. Why am I training them then? You also hear how we need more education, new jobs will be created. We need to innovate.

What a bunch of garbage. The truth is our country and most corporations are run by a bunch of crooks.

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