Thread regarding Optum layoffs

That's because people who never developed a line of code in their life make the staffing decisions

That's because people who never developed a line of code in their life make the staffing decisions. Offshore resources believe they are favored over their American counterparts because they are more skilled and talented.

The truth is, it has everything to do with the bulls*** blended hourly rate charged for projects. An onshore resource is charged at $115 per hour (even though no full time developer or QA makes this).

An offshore resource is charged at around $35. So, if you are a Senior Manager and all resources are the same to you quality wise, they will simply choose the lower rate. By the way, they are clearly not the same.

They do not know the language, are often new and only code exactly what is on paper (never filling in between the lines).

Couldn't have said it better myself. Great post @XAWssq4-snbh

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Post ID: @Y2c8mdB

3 replies (most recent on top)

Again, generalizing is considered discriminatory and is plain bad business. I'm surprised a grad professor/instructor would talk in such a manner. I know of smart people of all races and nationalities and I know some people who are dummer than rocks in all races and nationalities as well. The issue of off-shoring is really about the re-work error costs, the unemployment taxes and the long-term costs to society/shareholders being balanced against Short term gain for Exec Comp. Also, as a society we have to look at how the work is regulated! Some companies have been smart about what they outsource and others have relied on society to bail out their off-shore errors that aren't regulated at the same level as work on-shore. From what I understand, local on-shore Indian workers make the same as US workers, as it would be considered discriminatory to pay different amounts and recently the off-shore workers in India/Ireland make the same wage as some Indian/Ireland communities cost of living is the same as New York! Way back when the pay differential with off-shoring may have been 1/5th but I don't think thats the case today and especially with error re-work with learning. Indian workers are part of a contract company that actually seems like a labor union that negotiates with Management so the off-shore workers have more bargaining power than the average American worker who is laid of in an at-will manner with no severance. Again, affected workers should call Amy and Mr. Wahl to help with these layoff situations and keeping jobs in MN, they represent the Citizens of Minnesota!

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Post ID: @Y2c8mdB-2bhu

Generalizing about groups of people is discriminatory. From a shareholder and community perspective , we have to look at specific instances of success and failure with offshoring to India and Ireland. There are times where Executives like offshoring for their own short term gain only and Executive pay only for the MN taxpayers to pick-up the bill for the long term losses that aren't regulated similar to the US. For example, look at the billions of dollars of cost to the US taxpayer and shareholders when Target outsourced to India and India didn't have the infrastructure to prevent a data breech! Also, Shareholders and Taxpayers are paying a price for boomerangs: we've seen dozens of MN publicly held companies return work to the US when the cost of off-shore re-work because of errors exceeds the original American hourly wage. I want to demand more of our legislatures who represent the state citizens when I see Corp off-shoring like this because of Executive short term Executive Comp motives and costs to taxpayers. This may be worth it for employees affected to call Amy and Mr. Wahl!

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Post ID: @Y2c8mdB-1gvn

I dunno, I taught at a grad CS program, and the majority of 4.0 students were Chinese and Indian. I imagine it's like that everywhere. They work here for awhile, get homesick, and then go home to manage a bunch of IIT kids who work 12 hrs a day for 1/5th the price while making an American salary themselves. Under American trained management, I'll take those kids over American kids every time, even if you paid them equivalent salary, nevermind the cut rate price we actually get billed at.

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Post ID: @Y2c8mdB-ipv

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