Outsourcing
 

 

The trigger for me to begin serious analysis of what was happening to our country was when I found out about outsourcing.  By outsourcing, I don't mean call centers and I don't mean contracting with American firms to do information systems work on American soil with American workers.  By outsourcing, I mean the export of high technology and IT systems to India and the contracting with Indian firms - using imported Indian workers to work on American computer systems.  By outsourcing, I mean the privatization of government functions and especially management of government computer systems.  This was the flashing red signal that something was terribly wrong.     

Remember all during the 90's when Richard Clarke was the government's doomsayer of all the bad things that could happen to our country if the computer systems failed? The things he was saying were all true.  Our country is virtually totally automated.    Our transportation systems, our communications, our distribution systems - are all dependent on computer systems.  Exporting those systems to a foreign country is insanity.  It's a national security risk.  It gives India the control of our fate.  All they have to do is to shut down the global network from their side - even for a few days at a time.... and we are in big trouble. 

I spent quite a lot of time learning about 'Free Trade' and the global economy.  The lies and fraud surrounding this issue are unbelievable.  The computer technology firms (via 501-C3's and universities) feed stories to the press that are pure fiction.  They say that Indian programmers are more highly educated and are better.  This is pure silliness.  What they are is cheaper.  A programmer here earns about $60,000.  An Indian programmer earns between $7,000 and $10,000.  End of story - case close.

One name that is prominent on the issue of outsourcing is Harris Miller. CEO of the Information Technology Association of America.  I started collecting stories on him because he lobbies congress for both more Indians on visa as well as promoting outsourcing.  What I found on Harris Miller is that he is a liar and a traitor.  More importantly though, I found that the strategy Harris Miller used in California against the United Farm Workers union was the same strategy that was used to generate 'irrational exuberance' in the stock market which was used to justify the flooding of high tech jobs market with imported foreign workers which has led to the export of those industries to India.  

'Shortage of workers' is the mantra to the legislature to justify the importation of foreign workers... which squeezes American citizens out of the labor market and drives the price down.  I found that at the same time Miller was working his 'shortage' strategy here, he was also working with the Indians to establish their infrastructure to pave the way for exporting our high technology sectors.  The timeframe in which he was doing this corresponded to the beginning and end of the dot.com bubble.  Coincidence?  Only if you believe in fairy tales.

That led me to start looking at the dot.com bubble and the corporate bankruptcies of the 90's.  I'd followed the Enron bankruptcy not only because it was the biggest, but also because it affected my electric bill.  So when I started looking at Global Crossing it was obvious that it had the same signature - computer accounting fraud and stock fraud made possible by the 'irrational exuberance' of the market. 

Global Crossing was the corporation that built the global communications network that made possible the export of our high technology jobs to India.  The 'irrational exuberance' of the market during the 90's generated the capital to do it.  'Coincidently' after the network was finished, they filed for bankruptcy. 

Going back to the dot.com boom, it was kicked off by a one day meteoric rise of an IPO for a company named Netscape.  Netscape's claim to fame was an Internet browser.  As a computer systems analyst and programmer... my reaction was HUH?  A good analogy is if an IPO for a new cordless drill set off 'irrational exuberance' in the stock market.... it doesn't compute.  The only thing special about Netscape was that they were the corporation who sued Microsoft but they didn't win a thing really.  While the public and the gosling press might not realize that, people in the tech industry did. 

A little more investigation revealed that the person behind Netscape was a man named John Doerr. 

 

JOHN DOERR, 46
Partner at Kleiner Perkins Caufield & Byers

http://www.businessweek.com/1997/34/b354125.htm

Dubbed the ''human hummingbird'' for his flitting among industry moguls, Doerr is perhaps the biggest power broker in Silicon Valley. He has financed such highfliers as Sun Microsystems, Netscape, and Compaq, and hobnobs with Clinton 
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