India and American Job Outsourcing: The Truth, Not Obamaspeak

The staggering Third World-like incompetence from America’s first half-black president has reached new heights with his ludicrous claim that the current trip to India is a “job creations” strategy — when more than a million American jobs have already been outsourced to Indians.

During a break from dancing with Indian children, Obama told reporters in his reported $200 million-a-day holiday that business deals would bring 54,000 jobs at home and that “For America, this is a jobs strategy.”

The reality is that the IT-related industry has seem some one million American jobs go to India in the last decade alone, with many outsourcing experts claiming the figure is even higher.

Ron Hira, associate professor of public policy at the Rochester Institute of Technology and author of the book Outsourcing America, was recently quoted as saying that the “Call Center industry has been a driving force in India’s economy ploughing in more than $50 billion in revenues.

They have successfully built a business model where not only do they offshore large numbers of jobs, but the fraction that remain in the U.S. are filled by lower-paid foreign guest workers,” Professor Hira said.

They are often also forced to train their foreign replacements.”

In addition, many Fortune 500 companies have outsourced a large range of jobs to India through companies such as Wipro, TCS, and Infosys.

General Electric outsourced its back office operations to India in the 1990s, while Accenture, IBM, Hewlett Packard, and Dell followed close behind.

During the Bush presidency, the number of jobs in the U.S. economy shrunk by at least 3.2 million, of which 2.5 million were in manufacturing. Those jobs did not “vanish” — they simply moved somewhere else where “labor costs were cheaper.”

According to the Labor Department, some 15 million U.S. workers were either unemployed, underemployed, or too discouraged to job hunt at the beginning of the Obama presidency.

The cause of the problem is obvious to all, it seems, except Obama. The chief economist at, Mark Xandi, as quoted in the New York Times, said that the “movement of jobs and production overseas is handcuffing the recovery.”

His views were echoed by Jeff Faux, economist and founding president of the Economic Policy Institute, who said, “with NAFTA, the World Trade Organization, and other trade deals of the last decade, American corporations are now tapping into a global supply of workers who can be trained to do everything from design to production, maintenance to marketing.”

Professor Hira said that once these jobs are gone, there is little incentive to bring them back.

As long as employers can take advantage of much lower labor costs in other countries, there’s no compelling reason to bring back many of these well-paying jobs,” he said.

The Washington Alliance of Technology Workers (WashTech) famously released a tape of a conference call in which IBM’s top human relations executives discussed transferring 3 million U.S. service jobs to countries such as China and India by 2015, while a Forrester Research study predicted U.S. employers will move another 3.3 million white-collar service jobs and $136 billion in wages overseas in the next 15 years.

Obama’s belief that further investment by Indians in America will lead to job creation is little short of laughable.

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Category: Establishment News

Comments (4)

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  1. John Schmidt says:

    Don't these American companies that outsource jobs to India or China, realize that unemployed Americans will not be in any position to buy their products here? Don't they realize that in the long term they themselves will be going bankrupt? Maybe our employed illegal aliens might still be able to go to Chinamart to shop, while we subsidize them. It's sheer madness, and nothing is being done about it!

  2. JamesinUSA says:

    This is why we ned a nationalist economy to put America first!

  3. John says:

    It's important not to let the media tell you otherwise. The American public is getting it from all sides. Outsourcing on one side, endless bank bailouts on the other. And when you cannot outsource to cheap labor overseas that does everything to devalue their currency unfairly then you just bring the cheap labor in from Mexico and other foreign countries. The government is doing everything it can to choke out the white majority in this country.

  4. mike says:

    He's over there talking about making Harley Davidsons in India.