IBM asks laid-off employees to relocate overseas

igor

Administrator
Apparently this is a new tendency in outsourcing. If it still can be called outsourcing. IBM offers their own former employees who were laid off to move to India, Brazil, Eastern Europe or some other countries and work in IBM branches over there. This initiative includes some financial aid to offset moving costs and assistance with visas. Naturally, people will be paid lower wages according to local standards.

Do you think it will create a new wave of expatriation, if other companies follow this example? Do you believe that not only recent immigrants who still have connections with their original country, but many people who were born and lived all their lives in the USA will take advantage of this offer?

Links:
IBM offers to shift workers losing jobs to lower-wage countries
IBM to laid-off staff: Go to India

I don't think that there will be a lot of immediate impact on Argentina though, since Brazil seems to be more attractive to IT companies at the moment.
 

igor

Administrator
balle13112 said:
Why is Brazil more attractive to IT companies?
balle13112,

The main reason is that brazilian real devalued about 30% with respect to dollar during last year and peso only 10%. Brazil has government program to support outsourcing and political and economic environment is better. Argentina is not so friendly to foreign business. Boycott of Shell gas stations called by Mr. K back in 2005 is one of the examples.
 

criswkh

Registered
This month the Economist has an article about how Argentina and Venezuela are not friendly to foreign business. As for the IBM gig...I met a woman, works at IBM, who is in her 50s and has been traveling back and forth from US to Argentina/Brazil. She was given the option of relocating down to Brazil. She doesn't know if she will do it, because she always thought she would spend time in States with her grandkids, kids, and etc. You know the "golden years".
I think if people really want to keep their jobs and some stability in their profession they will move to another country, but a lot of people are uncertain of what will happen to their family back home. How much of a pay cut/family cut will a person make by relocating?


https://www.economist.com/theworldin/displayStory.cfm?story_id=12494563&d=2009
 

wnewman7

Registered
I worked for IBM here for a year as a local employee (not on an expatriot package) and it really depends on what work you are doing whether Argentina, Brazil or India makes more sense. Argentines speak the best English (and most pleasant sounding...as much as this may sound its EXTREMELY important in customer service feedback) of those countries, have the best education in Latin America, and are far more independent thinkers than India. That being said an Argentine is 2x the price of an Indian but still only 40% that of an American. Since late 2007 IBM Argentina has grown by over 1,000 employees and keeping in line with IBM's global initiative to have 80% of their people outside the US by 2011 Argentina is certainly a top spot. Argentina has been identified by English ability, education level, work ethic, cost, and REALLY important comparing it to India the small time zone difference. Also, IBM has been in Argentina for 85 years, does a lot of work for the government, and royally kisses Christina's @ss. when I worked their the local president posed for more than one photo-op with her at the various different buildings they are building now.
 

jedard

Registered
Does this sound kind of befitting the times in good ole USA?????
"Owners of capital will stimulate the working class to buy more and more expensive goods,
houses and technology, pushing them to take more and more expensive
credits, until their debt becomes unbearable. The unpaid debt will lead to bankruptcy of banks,
which will have to be nationalized, and the State will have to take the road which will
eventually lead to communism."

--Karl Marx, Das Kapital, 1867
 

igor

Administrator
jedard said:

"houses and technology, pushing them to take more and more expensive
credits, until their debt becomes unbearable. The unpaid debt will lead to bankruptcy of banks"

--Karl Marx, Das Kapital, 1867
This is a hoax.

Go to http://www.marxists.org/archive/marx/ and try to search for something Marx really said. For example,

"Capital is money, capital is commodities"

and then for
"houses and technology" or even "
bankruptcy of banks"
 
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