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Education IT

University of California's Outsourcing Is Wrong, Says US Lawmaker (computerworld.com) 338

Earlier this week, University of California hired India-based IT company HCL to outsource some of its work offshore. As part of the announcement, it announced that it was laying off 17 percent of UCSF's total IT staff. The U.S. lawmaker, Rep. Zoe Lofgren (D-Calif) and the IEEE-USA find the outsourcing job "wrong." dcblogs writes: A decision by the University of California to lay off IT employees and send their jobs overseas is under fire from U.S. Rep. Zoe Lofgren (D-Calif) and the IEEE-USA. "How are they [the university] going to tell students to go into STEM fields when they are doing as much as they can to do a number on the engineers in their employment?" said U.S. Rep. Zoe Lofgren (D-Calif). Peter Eckstein, the president of the IEEE-USA, said what the university is doing "is just one more sad example of corporations, a major university system in this case, importing non-Americans to eliminate American IT jobs." The university recently informed about 80 IT workers at its San Francisco campus, including contract employees and vendor contractors, that it hired India-based HCL, under a $50 million contract, to manage infrastructure and networking-related services. The affected employees will leave their jobs in February, after they train their contractor replacements.
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University of California's Outsourcing Is Wrong, Says US Lawmaker

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  • by Anonymous Coward on Friday September 09, 2016 @01:17PM (#52856225)

    No amount of money could make me train a replacement. If everyone thought the same way, we wouldn't have this problem.

    • by The Last Gunslinger ( 827632 ) on Friday September 09, 2016 @01:20PM (#52856265)
      Seriously, I'd fucking walk.

      And when I interviewed for my next job, I'd be brutally honest about why I did it. If the prospective employer didn't like it, that would tell me all I really needed to know about working for them.
      • by taustin ( 171655 ) on Friday September 09, 2016 @01:25PM (#52856323) Homepage Journal

        Too many people forget that interviews are a two way process. The company determines if you meet their needs, and you determine if they meet yours.

        The moment the prospective employee forgets that second part, they screwed.

        • by Fire_Wraith ( 1460385 ) on Friday September 09, 2016 @02:21PM (#52856933)
          In most cases though, the average applicant does not have nearly the leverage in such a negotiation that the company has.
          • by MitchDev ( 2526834 ) on Friday September 09, 2016 @02:29PM (#52857021)

            Exactly, when you have 100 applicants for one job, guess which side is in full control?

            • It's not just that. Most people live at, or near, their income level. Society encourages this in many ways, and young people in particular are vulnerable to it because they lack the experience with the slings and arrows of unemployment in the face of established debt and other costs, so they don't sock away as is prudent.

              When the question of "accept job or don't accept job" comes up, many times, there is a state of panic driving decisions to some degree. Same thing happens when one of the Bobs tells you "he

      • by 110010001000 ( 697113 ) on Friday September 09, 2016 @01:26PM (#52856331) Homepage Journal
        If you were a young person making $60k with a family you might not be so quick to walk away from money while you search for another job. Not everyone is in the same circumstances where they can pick and choose.
        • I also have the financial sense to save for a rainy day and not leverage myself to the eyeballs. I've been months without employment in recent years, and my family was provided for quite well despite the disquieting uncertainty.
        • by lgw ( 121541 ) on Friday September 09, 2016 @02:05PM (#52856745) Journal

          If you don't have 6 months cost-of-living saved up, and you've been working a professional job for more than a couple years, that's your fault (unless you've had a recent disaster). If you don't keep enough savings in the bank to walk off a job if the terms of that job become unreasonable, you've made yourself an indentured servant. The only people with a valid excuse to stay and train their replacement (except maliciously) are those still recovering from a different tragedy that cut down that 6 months savings. We're not talking about a minimum-wage job here.

          It really sucks that we don't teach the basics of money and savings in school, and people are left to figure it out on their own - I was an idiot until my late 20s. Take every opportunity to learn about how to build financial independence. It's not all-or-nothing, and every step is a good one. For a start, when you get that first real job, keep living like a student until you've got your disaster fund built.

          • Re: (Score:3, Insightful)

            [...] that's your fault (unless you've had a recent disaster).

            Let see... Great Recession... Some people on Slashdot argued that it was my fault that I was out of work for two years (2009-10), underemployed for six months (working 20 hours per month), and filed for Chapter Seven bankruptcy in 2011. I just file it under "Shit Happens" and move on. Five years later I'm still in recovery mode. Six months saved up is a nice goal, but it's not always possible.

      • It's a great sentiment but a lot of people are simply not in a position to turn down even a paltry severance package. Some people have kids to feed, some people are bad with money, some people just have rotten luck and get hit with expenses they can't ignore.

      • Re: (Score:3, Interesting)

        by elrous0 ( 869638 )

        Sadly, this being uber-SJW California, the University will probably try to portray everyone criticizing their use of out-sourcing as xenophobic racists. Any employees refusing to train their Indian replacements will end up with a team of of SJW hippies screaming "WHITE PRIVILEGE!!!" outside their house.

    • by Kludge ( 13653 )

      Yes, on the days I was supposed to train my replacement I would bring a few beers and some chips to work, sit down, share them, and tell the replacement some funny stories and not to worry about those computer things.

    • Fine! They will just hire contractors to train the new contractors!
      • by Pontiac ( 135778 )

        Funny thing.. I know a place in Denver where that happened.
        The company announced the outsourcing and all the highly skilled admins who had run the place for the last decade bounced out to new jobs within a few months.
        They had to call in Microsoft just to document some of the systems for the new H1B contractors.

        • by hackel ( 10452 )

          Microsoft? Haha, could the contractors not figure out how to press "F1"? Microsoft may make shitty software, but it is still point-and-click. A monkey could generally figure it out.

          • by Pontiac ( 135778 )

            Well if you want to come sort and document a poorly documented 60,000 user environment spanning 19 states 48 domains with Exchange, Lync, Sharepoint, tons of SQL databases and a host of custom interfaces to healthcare specific apps that live on AS400 systems be my guest.

          • by Pontiac ( 135778 )

            Holy crap.. #10,452.. when did you join?

    • It much easier to say that if you have money in the bank and no kids to feed.
      • It much easier to say that if you have money in the bank and no kids to feed.

        Yes it is. But it's not impossible to do even if you don't have those obligations. You might have to live very frugally for a while but it can usually be done. I get that it might be tough for some people but sometimes the price to do the right thing is high. Don't live beyond your means and always have a plan in case things go south.

      • The question you perhaps should ask yourself is, "Why don't I?"
      • by lgw ( 121541 )

        It much easier to say that if you have money in the bank and no kids to feed.

        Exactly! So have that money in the bank, and wait on those kids until you're financially stable. These are the most basic of life lessons. Make some minimal effort to plan you life, especially to plan for the unexpected disasters. Almost everyone will have one, and it's on you to be ready for the inevitable.

        • Well geez, how does anybody miss the solution if it's that obvious. Just have money in the bank! Man, how stupid are people if they couldn't even think of that? Just have money and that solves most of your problems! Why doesn't everybody just have money?

    • So in that case, they can either, pay IT staff less, fire some (more than they do if they outsource some of the work,) or charge the students more money in tuition... I don't see that being stubborn really helps any... It might move you higher up the axe list.
    • That is why the smart companies hire the replacements in parallel and in a gradual phase in.
  • Unions are needed! (Score:5, Insightful)

    by Joe_Dragon ( 2206452 ) on Friday September 09, 2016 @01:19PM (#52856257)

    Unions are needed!

    • And then our IT industry can finally be as good as our school system.
      • Re: (Score:2, Interesting)

        by Anonymous Coward

        Laborers pool their resources in unions.
        Capital owners pool their resources in companies.
        I see no difference. Both are trying to gain an advantage over others to benefit themselves. Both often abuse their power if the pooling activity turns out to be successful.
        Beats me why many people think one of these is a great thing and the other is a problem.

    • Yes, we need a bloated political system to fix a...bloated political system.

      Seriously, "Unions" are never the answer. It would only make things worse.

  • by Joe_Dragon ( 2206452 ) on Friday September 09, 2016 @01:21PM (#52856275)

    the H1B salary level needs enforcement / direct w2 rules + an COL part to it.

    • by lgw ( 121541 )

      Maybe so, but that's offtopic here. These jobs are going overseas. That's the thing: I can compete with H1-Bs, they have the same cost of living I do. But the same guys living in India? Not so much.

    • by Fire_Wraith ( 1460385 ) on Friday September 09, 2016 @02:25PM (#52856983)
      What seems to be the common thread is less the salary level of H1Bs, and more how it's being used. The worst offenses by far aren't from a regular US company filling an individual job slot with an H1B - it's the elimination of an entire department, replacing it with contracted services. Those contracted services then go to a company that primarily employs H1B workers. It's this loophole that needs eliminating, along with the contract service providers that are relying on H1B workers.
      • The simple solution is for Federal ADA's to start prosecuting people that replace a American worker with an H1-B. I believe they could argue quite effectively that employee A was replaced by H1-B performing exactly the same job functions and this violates the terms of the H1-B program. The H1-B holder should be immediately deported and the company(s) involved should all be fined a minimum of a years salary.

        Personally I'd like to see the law expanded and have these violations make the CEO personally liable.

  • The affected employees will leave their jobs in February, after they train their contractor replacements.

    Basically asking someone to dig their own grave. For me to do that the severance package would have to have to approach seven figures. Basically they'd have to pay for my retirement.

  • by Burdell ( 228580 )

    As someone that started in school for an engineering degree and later landed in IT, IT is not "engineering" (it can be the T in STEM but it is not the E).

    How many bills did Rep Lofgren introduce/vote for that would have increased the IT budget for the UC system? If they are like most places, IT is considered a "cost sink" and has to struggle to just keep an even budget (as costs increase). You can't hardly blame them for doing what they feel is necessary to maintain the service they are expected to provid

    • I hope you're not trying to claim that computer system engineering isn't engineering?
      • by taustin ( 171655 )

        The people that are being laid off aren't engineers, they're tech support. Mostly, I suspect, they're level one help desk.

    • by jmauro ( 32523 )

      How many bills did Rep Lofgren introduce/vote for that would have increased the IT budget for the UC system?

      None, but to be fair, Lofgren is the congresswoman for California's 19th at the federal level and the UC budget and funding are decided at the California state level. So it's not her job to do so.

  • "How are they [the university] going to tell students to go into STEM fields when they are doing as much as they can to do a number on the engineers in their employment?"

    They'll probably call it "affirmative action" because it benefits poorer Indians. Problem solved!

  • Uhhhhh ... (Score:5, Insightful)

    by molarmass192 ( 608071 ) on Friday September 09, 2016 @01:40PM (#52856489) Homepage Journal
    If H1Bs are for jobs no qualified American can fill, and HCL has a whole slew of H1Bs. Laying off American's actually working in those jobs to replace them with H1Bs from HCL should prove something no? The H1B program likely needs to be scrapped altogether. Granted there are some legitimate H1B holders, but it's obvious it's being abused. Anyhow, the bar for H1Bs is too low and vague. EB visas, which require extensive documentation supporting the claimed skill level, should be the go to for skilled immigration. If UCSF wants to outsource, then they can deal with staff physically located in India and all the logistical challenges that entails.
    • If there is a shortage of qualified American IT personnel (and it is very doubtful there actually is any), it is at the very top of the scale. A very simple fix to the abuse is to set the minimum salary at $165K. Get rid of the rest of the requirements altogether, they are just too easy to abuse
    • "Laying off American's actually working in those jobs to replace them with H1Bs from HCL should prove something no?"

      Obviously, there was never a shortage of talent in the US, there is just a desire to flood the market because of salary growth. They create the illusion there isn't qualified talent by listing requirements that might as well be a fingerprint so they can justify declining anyone who applies but they don't have to justify hiring an unqualified h1b, only the americans they reject.
  • A politician decried something they know nothing about for political gain? I can't believe it!

    Let me tell you, outsourcing these IT services is a hell of a lot better solution than raising tuition on students, which is what most schools have been doing like crazy. Now if we can just get them to stop wasting money on expensive, proprietary software licenses, we'll be in much better shape.

    • If you are saying that these schools won't raise the price of tuition and you know that for a fact then it would be good if you could show in writing that is the case. It certainly is not a given under any circumstance I've seen.

  • by Salgak1 ( 20136 ) <salgak@s[ ]keasy.net ['pea' in gap]> on Friday September 09, 2016 @01:57PM (#52856645) Homepage

    . . .they haven't outsourced the college administrators first. Given the massive administrative overhead [nytimes.com] of most colleges nowadays, that would save some serious coin. . .

  • Bravo. Let's hope this starts a movement.

  • by ErichTheRed ( 39327 ) on Friday September 09, 2016 @02:02PM (#52856711)

    If I could wave a wand and make all the lobbyists, visa loopholes and bad politics go away, I'd do two things:
    1. Make systems engineer/architect level people in IT part of the registered engineering profession with all the requirements and privileges afforded to it.
    2. For the rest (help desk, sysadmin of existing systems, etc.) establish a hierarchical guild system where people actually learn the work from masters and there is a progression throughout one's career based on personal achievement of levels of mastery.

    Why would anyone go along with this, you ask?

    For #1, Professional Engineers are responsible for maintaining licensure through exams and continuing education, like medicine and law. This guarantees at least a minimum standard -- if you know you hired a PE, you can at least guarantee they got through engineering school, passed a licensing exam and have some relevant experience. The same can't be said for a random yahoo who just made it through Bob's AngularJS Coder Bootcamp. In addition, PEs are legally liable for mistakes. If you told a company the trade-off for higher salaries was a guarantee that their project would be delivered correctly or they could get compensated, I think they'd go for it. The model today seems to be to hire a random offshoring firm, get 1000 random new grads working on your project and hope it works...this is a definite improvement.

    For #2, having the routine IT tasks (simple ticket-based sysadmin running known procedures, help desk) or development tasks (code CRUD application with these exact specs) broken out as trades also promotes quality. When I started a million years ago, I came from a science background in my education. Learning how to do various IT things required lots of self-study, but I also had an informal "apprenticeship" with my more senior colleagues who taught me a lot. Formalizing this has a huge benefit in my mind -- new grads get paid to learn things the right way, again, MCSE Bootcamp is not the right way. They also are given more responsible tasks over time, not thrown in the deep end where their mistakes will end up costing companies money and downtime. It's not a union, it's a merit-driven guild -- and that distinction would have to be very clear to appeal to the overwhelmingly libertarian crowd who populate IT jobs in large numbers.

    Long term, I think this is the only way to go. Healthcare has it right -- doctors (through the AMA) pay Congress bucketloads of money to ensure that the supply of physicians stays low and quality (and compensation) is kept high. We in IT/dev don't get this and we get stepped on because of it. In addition, there is a clear delineation between the professionals (doctors, dentists, nurses, pharmacists, etc.) and the paraprofessionals (assistants, aides, etc.) Computers are part of our daily lives - it's time our profession grows up and becomes recognized as important. Until then, companies will continue to think of IT the same way they see the janitorial or landscaping service -- costs to be minimized.

    • by liquid_schwartz ( 530085 ) on Friday September 09, 2016 @02:25PM (#52856977)

      If I could wave a wand and make all the lobbyists, visa loopholes and bad politics go away, I'd do two things:It's not a union, it's a merit-driven guild -- and that distinction would have to be very clear to appeal to the overwhelmingly libertarian crowd who populate IT jobs in large numbers.

      Interestingly anything merit driven is undermined by a legal concept known as "disparate impact", which is anything that is neutral but still has a sorting effect on protected classes. So your merit driven concept is great both in concept and practice until it hits the SJW tool of disparate impact and must effectively dismantled. It's one of the reasons why the US can't have nice things.

  • by WindBourne ( 631190 ) on Friday September 09, 2016 @02:06PM (#52856761) Journal
    Seriously, if they are going to do that, then lets start cutting federal money to UC. After all, they are saving money now and we no longer need to fund UC.
  • just took over the UCSF campus.
  • by arbiter1 ( 1204146 ) on Friday September 09, 2016 @02:22PM (#52856949)
    State/federal should cut funding to that university, they want to fire american workers to replace them with labor from india then well they don't deserve tax $.
  • I'm not saying I agree with the outsourcing here, or the issues with training replacements, or the other non-sense. But I'm not sure I understand how this is an H1-B issue. I can't see where it says that people are actually coming here to take jobs and work. They may be coming here for training, but I don't see in the summary how they are displacing people here.

    It sounds to me like they are offshoring a lot of these positions. Are workers in India, for example, doing work in India as outsources consider

  • When this story came up on Facebook yesterday my first thought was: If they don't want to use US workers then they don't need US government money. Let see if the law makers have enough balls to do something about this.
  • by AnalogDiehard ( 199128 ) on Friday September 09, 2016 @03:28PM (#52857593)
    Not only are health care data privacy laws not enforceable outside the US, but the data is vulnerable to breaches so brilliantly illustrated when a medical transcriptionist working in Pakistan threatened to expose patient records [sfgate.com] unless she got her back pay. It was revealed that the person who outsourced the work - and was responsible for the salary dispute - had ignored a prohibition from using offshore labor.
  • by eagl ( 86459 ) on Friday September 09, 2016 @05:23PM (#52858581) Journal

    I'd quit immediately if I was told to train replacements before I got fired. Why knot the rope thats gonna be used to hang me? I don't understand why anyone puts up with that kind of crap. Passive resistance until you find another job, then quit asap before you do anything to help them get rid of you.

    This is what unions are supposed to be for, things like ensuring that work rules and contracts do not permit forcing employees to train overseas replacements before getting laid off. Non-union employees need to stand up for themselves and not let themselves get abused like this. It would only take one or two instances of an entire IT department quitting en-masse to make the point that making employees train their overseas outsourced replacements is a non-starter. Get a couple CEOs fired rather dramatically when their outsourcing idea results in the company taking a multi-million dollar hit when an entire department quits before they get laid off.

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