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Sprint plans to send hundreds of technology jobs overseas
Kansas City Star ^ | 8/7/03 | Suzanne King

Posted on 08/07/2003 5:25:07 AM PDT by Non-Sequitur

Hundreds of Sprint Corp. employees may lose their jobs as the Overland Park-based telecommunications giant moves forward with a plan to send certain technology jobs overseas.

Sprint chairman and chief executive Gary Forsee on Wednesday said competitive pressures had forced the company toward "offshoring" -- the growing trend of U.S. companies relying on lower-paid computer programmers as far away as India and China.

Sprint put out a request for proposals from outsourcing companies earlier this year and has since narrowed the list to two offshore vendors. Forsee said Sprint is conducting site surveys and is in "serious discussions" with the two companies.

"At the end of the day, it's several hundred jobs that could be impacted," Forsee said. "But we don't know what the ultimate result is."

A final decision on how to handle sending the jobs overseas is likely within 60 days.

Layoffs would not be immediate, Forsee said, because moving work to the outsourcing companies could take six to 12 months.

Forsee also said the company hopes to ease the impact of sending jobs overseas by moving some displaced workers to other information technology projects within Sprint and replacing existing contractors with Sprint employees.

Sprint already was considering moving jobs overseas when Forsee replaced William T. Esrey as the company's top executive earlier this year. But Forsee said he made the final decision to go ahead with the request for proposals.

Sprint already uses an offshore company for some customer service jobs. The company has outsourced information technology jobs to U.S. firms for years. But it has resisted sending information technology jobs overseas.

That has changed as Sprint, like other telecommunications companies, struggles with weak sales in what continues to be a difficult economy.

For almost two years, Sprint has been on a campaign to lower costs to compensate for soft sales. Since October 2001, more than 18,000 jobs have been eliminated. Hundreds of contractors also have lost work at Sprint.

Computer programmers and other skilled technology workers have been among the hardest hit, and there remains a severe shortage of available technology jobs in Kansas City and elsewhere.

Sprint's move toward sending jobs overseas will make a bad situation worse, said Rick Kumar, a former Sprint contractor who last year founded a support group for laid off information technology workers.

"The market is where it was a year and a half ago," Kumar said.

Many people still are out of work or have abandoned their information technology careers for other work, Kumar said. But unlike many of his information technology colleagues, Kumar said he does not blame Sprint and the many other companies that have turned to cheaper labor overseas.

"They have to follow the model or go out of business," Kumar said.

That is precisely how Sprint explains its move toward an offshore vendor. When competitors began cutting information technology costs by turning to offshore programmers, company officials said, Sprint was forced to look at following suit.

"We've got to stay on top of our competitive position," Forsee said. Offshoring "has become a significant trend that we hadn't participated in, so we looked at that as a strategy that was important...because of the competitive aspects."

IBM, Microsoft and HP are among the U.S. companies that are sending information technology jobs overseas or reportedly plan to start. Sprint must lower its cost to keep pace, Forsee said. But he knows careers are at stake.

"When you take actions like that, you're doing that hoping to keep the company as a whole strong," realizing that there are "people and careers and jobs at stake," Forsee said. "We try to do that part very carefully. It's not without significant consideration."

Shares of FON closed Wednesday at $14.05, up 1 cent. PCS closed at $5.41, down 36 cents.


TOPICS: Business/Economy
KEYWORDS: economy; offshoring; outsourcing; sprint; unemployment
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To: AdamSelene235
Three Systems of Plunder

The sincerity of those who advocate protectionism, socialism, and communism is not here questioned. Any writer who would do that must be influenced by a political spirit or a political fear. It is to be pointed out, however, that protectionism, socialism, and communism are basically the same plant in three different stages of its growth. All that can be said is that legal plunder is more visible in communism because it is complete plunder; and in protectionism because the plunder is limited to specific groups and industries.* Thus it follows that, of the three systems, socialism is the vaguest, the most indecisive, and, consequently, the most sincere stage of development.

-The Law, Frederick Bastiat

21 posted on 08/07/2003 7:22:53 AM PDT by AdamSelene235 (Like all the jolly good fellows, I drink my whiskey clear....)
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To: Non-Sequitur
Just great Sprint, we need Chinese programmers working on software dealing with wireless networks, as well as the parts of the internet backbone Sprint handles (unless they already outsourced that as well).
22 posted on 08/07/2003 7:26:36 AM PDT by af_vet_rr
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To: A. Pole
Arrrgghhh!

I'm starting to get really scared about this stuff. It's a 9-11 in the economic sphere.

What are Americans going to do? What do you tell a young kid to study?
23 posted on 08/07/2003 7:29:14 AM PDT by VadeRetro
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To: A. Pole
If the individual companies are being forced by the competition to eliminate American jobs, maybe the correct answer is to level the playing field by restoring the properly calibrated tariffs (and maybe reducing payroll tax in exchange)?

Which tax is reduced in return for the tariffs being raised is almost irrelevant. my personal choice is the Corporate income tax as that adds a benefit of reduced corporate costs that should then be passed on to the consumer in order to keep pace with competition. The payroll tax being offset by tariff revenues would put more money in people's pockets and pssibly also cut corporate expenses for labor here in the USA. Either way the tariff combined with other tax reductions is good for the American economy.

24 posted on 08/07/2003 7:29:45 AM PDT by harpseal (Stay well - Stay safe - Stay armed - Yorktown)
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To: A. Pole
If the individual companies are being forced by the competition to eliminate American jobs, maybe the correct answer is to level the playing field by restoring the properly calibrated tariffs (and maybe reducing payroll tax in exchange)?

First of all, it won't happen. The US would get hammered by international opinion if we jacked-up tarrifs. Besides, Libertarians and neo-cons would be in the front of the protest marches against any such action because they don't want to pay $10 more for a PDA but would rather see their neighbor laid off and begging for bread.

There is another problem with "tariffs". They really only apply to manufactured goods and not intellectual property, which is what IT jobs really are. Let's say that Microsoft laid off everyone of their developers in the united States and hired nothing but Russians and Indians. So this goofy-looking OS comes back, riddled with back-doors, security breaches and enough bugs to keep the Russians and Indians forever employed "correcting" the problems; they could still sell the shrink-wrapped software without tariffs. Actually, because of our stupid laws regarding the exportation of encryption technology, it would be in Microsoft's best interest to develop all of the crypto outside of the country so that the foreign made code would be exempt from the ban. Our government has placed too many laws and restrictions on domestic business to ever provide for a silver bullet solution to the outsourcing problem.

It is impossible to level the playing-field. The united States has too much infrastructure, too many dependant on entitlements, grants and aid, too many places for our military, too many economic demands around the world to ever be on the same level playing-field with nations whose idea of mutliple use technology is to use their dirt roads not only as transportation, but also as toilets and community recreation centers.

25 posted on 08/07/2003 7:30:54 AM PDT by Dr Warmoose
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To: Non-Sequitur
Sprint just lost me as a customer.
26 posted on 08/07/2003 7:31:09 AM PDT by StolarStorm
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To: VadeRetro
What are Americans going to do? What do you tell a young kid to study?

How to handle a gun.

27 posted on 08/07/2003 7:31:48 AM PDT by Dr Warmoose
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To: AdamSelene235
The sincerity of those who advocate protectionism, socialism, and communism is not here questioned. Any writer who would do that must be influenced by a political spirit or a political fear. It is to be pointed out, however, that protectionism, socialism, and communism are basically the same plant in three different stages of its growth. All that can be said is that legal plunder is more visible in communism because it is complete plunder; and in protectionism because the plunder is limited to specific groups and industries.* Thus it follows that, of the three systems, socialism is the vaguest, the most indecisive, and, consequently, the most sincere stage of development.

Your citation of Batiat lying about protective tariffs does not advance your case. If you would care to discuss factual cases we can discuss factual cases if you care to merely use this forum to advance your religous belief in the current trade envirornment which is only called Free Trade by those who have a lack of knowledge about the cuurrent trade envirornment expect to be completely refuted with facts not fairy stories or lies like most Free Traders put forth.

28 posted on 08/07/2003 7:33:15 AM PDT by harpseal (Stay well - Stay safe - Stay armed - Yorktown)
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To: VadeRetro
Tell him to go into the trades, or medicine, or teaching

Everything else is outsourced, and these arent outsourced yet

Unless you consider the increase in Indian Doctors...
29 posted on 08/07/2003 7:33:54 AM PDT by RaceBannon
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To: AdamSelene235
and in protectionism because the plunder is limited to specific groups and industries.

Funny, the founders of the united States chose tariffs, aka "protectionism".

30 posted on 08/07/2003 7:34:05 AM PDT by Dr Warmoose
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To: Non-Sequitur
something needs to be done about this soon. if the president wants to be reelected he better address it - I would say that companies doing this should be subjected to some sort of penalty, personally handed to them by Mr. Bush - it would at least be a sign that he actually cares about the jobs we are losing and will make other companies think twice.

If you can't be competitive because of what you pay your employees, find other ways to cut costs, like marketing and advertising.

I can accept losing manufacturing jobs, due to union infiltration over the years that has literally been the cause of those jobs "pricing themselves out of the market" but when you start losing white collar jobs that people in this country have spent money to educate themselves for, where does it end???

My husband's in IT and we're counting our blessings today.
31 posted on 08/07/2003 7:34:13 AM PDT by rocky88
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To: Dr Warmoose
There is another problem with "tariffs". They really only apply to manufactured goods and not intellectual property, which is what IT jobs really are. Let's say that Microsoft laid off everyone of their developers in the united States and hired nothing but Russians and Indians. So this goofy-looking OS comes back, riddled with back-doors, security breaches and enough bugs to keep the Russians and Indians forever employed "correcting" the problems; they could still sell the shrink-wrapped software without tariffs. Actually, because of our stupid laws regarding the exportation of encryption technology, it would be in Microsoft's best interest to develop all of the crypto outside of the country so that the foreign made code would be exempt from the ban. Our government has placed too many laws and restrictions on domestic business to ever provide for a silver bullet solution to the outsourcing problem.

There is nothing about the importation of software that inherently makes it immune from tariffs.

32 posted on 08/07/2003 7:34:51 AM PDT by harpseal (Stay well - Stay safe - Stay armed - Yorktown)
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To: harpseal
There is nothing about the importation of software that inherently makes it immune from tariffs.

So you say.

Why don't you write a potential tariff law that would cover software. I would like to see the language and how it would be defined and enforced.

33 posted on 08/07/2003 7:38:37 AM PDT by Dr Warmoose
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To: rocky88
I can accept losing manufacturing jobs, due to union infiltration over the years that has literally been the cause of those jobs "pricing themselves out of the market" but when you start losing white collar jobs that people in this country have spent money to educate themselves for, where does it end???

I would suggest that you reconsider some of your stand on Manufacturing jobs as it is not merely Union jobs being exported mostly to China it is a whole bunch of other jobs when the Chinese maintain 50% tariffs on Americna consumer products (at least some consumer products I ahve not reasearched all of them). Harley Davidson Motorcycles have one fifthe of teh worldwide market share yet they are barred from China by non tariff barriers. They would perhaps be an ideal export to that nation but they are barred.

34 posted on 08/07/2003 7:38:41 AM PDT by harpseal (Stay well - Stay safe - Stay armed - Yorktown)
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To: AdamSelene235
It is to be pointed out, however, that protectionism, socialism, and communism are basically the same plant in three different stages of its growth.

Why, yes.

Much in the same manner as "sports automobiles, apples and oranges" being basically the same thing.

35 posted on 08/07/2003 7:39:06 AM PDT by Lazamataz (PROUDLY POSTING WITHOUT READING THE ARTICLE SINCE 1999!)
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To: VadeRetro
You're so right!

After listening to Arnold say he was going to clean house in Sacramento and represent the people, it made me wonder if from this growing pool of educated, highly intelligent, unemployed engineers there might not be be a few interested in running for political office. Or, maybe a retired well-off engineer?
Without a responsive and uncorrupt majority in Congress the solutions to this economic mess will not be implemented. And, I'm not sure how much time we have left to fix it.
36 posted on 08/07/2003 7:39:32 AM PDT by LibertyAndJusticeForAll
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To: A. Pole
Thanks for the ping. This needs the same message.
========

OPEN ASSIGNMENT
MISSION TO SAVE AMERICAN JOBS

President Bush:

Mr. President your mission, should you decide to accept it, is to recover the 3+ million jobs lost on your watch. You are to find where they went, recover them, and prevent this from happening again.

You have until November 2004 to complete this mission.

If you choose not to accept this mission, or are incapable of performing, don't run in the GOP Primary so another Republican can accept this important mission for America.

American Citizen Voter

PS Ronald Reagan was the last Republican to understand. Ross Perot sent a warning to your Dad but since then all we hear is the mantra, 'Perot gave us Clinton'. Actually your Dad gave us Perot.

37 posted on 08/07/2003 7:40:11 AM PDT by ex-snook (American jobs need BALANCED Trade. We buy from you. You buy from us.)
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To: Non-Sequitur
Jobs being sent off shore? I'm shocked, just SHOCKED I tell ya!
38 posted on 08/07/2003 7:42:43 AM PDT by null and void (Everything I needed to know about Islam I learned on 9/12 - when I put a Flag in my cubicle)
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To: RaceBannon; Dr Warmoose
Not exactly the Land of Opportunity, anymore. Not the America I grew up in.
39 posted on 08/07/2003 7:44:09 AM PDT by VadeRetro
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To: LibertyAndJusticeForAll
Without a responsive and uncorrupt majority in Congress the solutions to this economic mess will not be implemented. And, I'm not sure how much time we have left to fix it.

I keep expecting someone to start demagoguing this issue, but so far even the Democrats are looking the wrong way, pretending to be blindsided. I don't know what's scarier, if a Dem challenger sees it before Bush does, or if nobody sees it.

40 posted on 08/07/2003 7:46:14 AM PDT by VadeRetro
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