Overhype

Overhype

by Mike Masnick





Indiana State Job Agency Hires India Firm

from the is-this-really-so-bad dept

Oliver Wendell Jones writes "The Indiana Department of Workforce Development is the government office responsible for helping to find out of work residents of Indiana a new job and provide them with unemployment pay outs until then. However, when there came a need for new computer upgrades, instead of contracting with local Indiana businesses, the jobs went to India instead. The beauty of it is that they are spending federal dollars to do so. This means that the state of Indiana is sending this country's money to India." The story probably gets a gut reaction from a lot of people thinking it's ridiculous, but I think it's a good thing. First, and most importantly, the article says that no local firm bid for the deal. So, saying this is taking jobs away from locals is simply wrong. Furthermore, with this inexpensive, more advanced system, the Department of Workforce Development is better able to actually find Indiana residents jobs. If they had been forced to hire locally, they'd be less efficient. Sure, they would have been able to hire a few people, but overall, the system would be less efficient and more people would be out of work and less able to find new jobs.

14 Comments | Leave a Comment..

 

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  1. Yes, but the fundamental question is...

    by Anonymous Coward - Sep 30th, 2003 @ 1:51am

    ...will the hired Indians be motivated to find the fired Indianans jobs... or will they just save Indiana's paycheck money to pay off the right people for the right to immigrate to higher paying 7/11 jobs in Indiana?

    Inquring minds want to know...

    (reply to this comment) (link to this comment)

  2. I don't agree

    by Oliver Wendell Jones - Sep 30th, 2003 @ 8:19am

    Yes, no Indiana companies bid for the job.

    The point of the story though is that the Indiana Department of Workforce Development is responsible for keeping Hoosiers employed and sending jobs not only out of the state but out of the country is downright silly.

    We have thousands of unemployed tech workers in Indiana (and this original story was e-mailed to me by one of them) and there is absolutely no reason that the one state agency responsible for trying to find those people a job would instead send those jobs off to a foreign country. Did it save the state some money? Sure. Did it put unemployed Hoosiers back to work? No. Did it give any incentive for employeed techies in Indiana to keep trying? No.

    (reply to this comment) (link to this comment)

  3. Re: I don't agree

    by icon Mike (profile) - Sep 30th, 2003 @ 8:24am

    But, if it let's the department spend more money helping them find long-term competitive jobs, isn't that better for the state?

    I understand why, on the face of it, it seems like a bad move. However, wouldn't they just be wasting money if they went with a more expensive inefficient system? It wouldn't help any of the other unemployed techies they're looking to help as much as if they (a) went with the best proposal to build the best system and (b) saved more money for actually helping the techies directly.

    (reply to this comment) (link to this comment)

  4. How sad ...

    by AMetamorphosis - Sep 30th, 2003 @ 8:38am

    ... and the state of Indiana couldn't manage to find a firm in AMERICA ? ! ? !

    I'm ashamed to say I was born a Hoosier ...

    (reply to this comment) (link to this comment)

  5. Well

    by Alex - Sep 30th, 2003 @ 8:59am

    If the Indian company can do the same quality of job cheaper, and the department would spend less money doing that, I would be perfectly ok with that if the taxes go down.

    Probably would never happen but in reality I would be perfectly happy with more money in my pocket and the mundane jobs going to India, than supporting minimum-wage, paper-sorting jobs that should have been done by the computer in teh first place.

    (reply to this comment) (link to this comment)

  6. you cant say...

    by ayden starbuck - Sep 30th, 2003 @ 9:24am

    you cant definately say that the system designed by an indiana firm would be inferior to an indian designed one. 1 !> null.

    (reply to this comment) (link to this comment)

  7. No Subject Given

    by Anonymous Coward - Sep 30th, 2003 @ 9:35am

    What if the State of Indiana could save even more money by outsourcing to a country that allows slave labor? Can you really justify these decisions solely on the basis of money saved?
    I'm not suggesting that India allows slave labor, but their cost of doing business is lower because their standard of living is lower and their citizens don't enjoy the same environmental and labor protections we enjoy in the U.S. Outsourcing is a complex issue -- and I'm not sure what the answer is -- but by supporting outsourced labor markets, the state government is using tax dollars to contribute to the lowering of living standards for its own citizens, and that seems perverse.

    (reply to this comment) (link to this comment)

  8. India == Indiana?

    by aNonMooseCowherd - Sep 30th, 2003 @ 2:08pm

    Maybe the bureaucrats didn't know the difference between India and Indiana.

    (reply to this comment) (link to this comment)

  9. Easy to rig things

    by Anonymous Coward - Oct 3rd, 2003 @ 3:42am

    It is easy to write and "open" government bid RFQs so that only the desired winner fits the criteria or even knows about it. Bet that happened here.

    (reply to this comment) (link to this comment)

  10. Indian vs. India

    by Anonymous Coward - Oct 26th, 2003 @ 4:16pm

    Mike,
    You obviously either have a bios or didn't bother to actually research the facts yourself. The Indiana Department of Workforce Development contract was bid on by several "local" companies, including Accenture, who has offices in Cincinnati, Chicago, Cleveland, etc... Many of those workers even live in Indiana.. Amazing.
    Taking jobs away from local residents, especially to revamp The Indiana Department of Workforce Development computer system, by some offshore company, is the most un-American, un-educated, decision I've heard in many years.
    And yes, these workers will be brought in on H1B visas and paid US wages to do the work of what should be US/Local residents.
    Hope you take the time to research your topic next time.

    (reply to this comment) (link to this comment)

  11. Re: Indian vs. India

    by Trevor Stinzel - Nov 20th, 2003 @ 6:52am

    This is how our government is planning on improving the economy.
    Democrats want cheap labor and votes so they import them from Mexico & other countries.

    Republicans want the same cheap labor and votes so they import & outsource jobs to India.

    We are definitely on the right course to self-destruction. The jobs are leaving US, because we are the nation that wants to do “good” at its own expense. The manufacturing jobs are already in China and other “cheap labor” countries. Now is the hi-tech job’s turn. What is left? Caring for elderly? Why not ship them too to India it is cheaper there.

    Doctors of radiology in India are already working on US x-rays that are electronically mailed to them.

    Please check the COMPUTERWORLD Nov. 17. 2003 - It is a done deal INDIA got the job. Indian worker bees will write the software for the Indiana’s unemployed that they have replaced.

    Ain’t capitalism is great?

    Are we witnessing the “Fall of the Roman Empire”.

    (reply to this comment) (link to this comment)

  12. not surprised

    by michael beanblossom - Dec 2nd, 2003 @ 9:17am

    in response to your article reguarding out of state/country contracting by Indiana...I find it very easy to believe that many jobs from the State of Indiana are being pushed to out of state personel. I have personally seen this happen, whether it be the good old boy syndrome of ranking personel hiring their relation, or bringing someone out of state that is not neccessarily more qualified, but has a direct link to the hiring of the position. My responce to this... keep applying.

    (reply to this comment) (link to this comment)

  13. No Subject Given

    by Anonymous Coward - Jan 22nd, 2004 @ 8:59am

    Please, I can't believe that comment. You are not helping Hoosiers by outsourcing. Do you really believe that, or are you all simply attempting to justify your actions? What a joke! You peolpe are paid by the state to locate jobs for HOOSIERS!!!!!!

    (reply to this comment) (link to this comment)

  14. international outsourcing of jobs

    by D.PARAMESWARAN,POET/WRITER/SUNFLOWERDANCE.COM - Feb 18th, 2007 @ 11:07pm

    well and no, not well!
    I think there are two aspects to the issue.
    01. A govt's/ state's first duty is to sons of soil, then to own citizens. If 75% of us jobs are outsourced, the effect will be tht many Us citzns will be unemployed. the consequences of unemployement psychology should be understood by bureaucrats at the state level. terrorism increases this way. unemployed will be losing their confidence, and will start doing nasty things. frustrated souls become criminals in the long run. every one must be busy and employed to keep the brain engaged usefully. No job, more crimes. It is the duty of the state to protect the citzns primary fundamental right to jobs. If suitable persons are not available, try in other states, even create educational training instns to create them.
    HENCE IT IS WRONG.
    02. the world is becoming a gloabal metro. No one can stop the crazy spree of the world towards international outsourcing for reducing expenses. the multinationals, and the unjust approches of the managements of the states are responsbile for it. try to reduce the local prices, cost of living, instead of outsourcing. THE TREND I SAY IS INEVITABLE THE WORLD OVER. NO ONE CAN STOP IT. TAKE IT. EAT IT. THIS IS WHAT THE WORLD SAYS. ONLY REMEDY IS RESPONSBILE SHOULD COME TOGETEHR IN A DEMOCRACY LIKE THE USA WHERE WHITMAN, EMERSON, AND LEADERS WERE BORN !

    (reply to this comment) (link to this comment)

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