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jtuck004

(15,882 posts)
Mon Jan 13, 2014, 10:10 PM Jan 2014

Obamacare Outsourced


The Obama administration has offshore outsourced Obamacare. They made Accenture the lead contractor for the website healthcare.gov. The contract is estimated to be worth $90 million and the original contractor, CGI Federal, is out. We pointed out earlier that the failed Obamacare website was poetic justice as CGI Federal is also an offshore outsourcer of U.S. jobs. But now the poster boy for labor arbitrage, offshore tax havens, and bloated, often failed government contracts is in charge, Accenture.

Accenture is one of the biggest offshore outsourcers of American jobs. In 2012 they used 4,037 H-1B Visas alone and are ranked #5 in using foreign guest workers to displace U.S. workers and offshore outsource jobs. The H-1B Visa is known as the offshore outsourcing Visa. Offshore outsourcers use this Visa in a notorious method to displace Americans and technology transfer large projects to cheap labor nations.
...

Accenture, like most BPO offshore outsourcers, saves money by underpaying foreign guest workers they import. Typically they pay 25% less for their imported employees than the prevailing wage for a similar United States citizen worker. In 2005, with the corresponding H-1B Visa good until Q1 2013, Accenture had 12,684 H-1B foreign guest workers earning an average of $53,042 per year. This is far less than the median $80,000 salary the same job responsibilities and skills required would fetch for an American worker. Accenture is so bad, they literally paid a foreign guest worker $25,113 per year with the job title, Chief Programmer. Typically chief programmers make six figures in America. Accenture is systemic in their labor arbitrage of United States citizens. Of their imported H-1B foreign tech workers in 2005, they paid 15.3% less than $40,000 a year and 40% less than $60,000. This is way, way below the kind of salaries one would see for a highly trained, college educated technology professional.

The situation is so bad they block out American contractors from obtaining government contracts by undercutting labor costs in addition to lobbying and campaign contributions.
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More here.

I'll be interested to see if there is any substantive proof of incorrect information in this article from any Accenture employee that might post, now that CGI has been sent on their way (with $292 million bucks)...

If not, why is our own country pitting lower-paid foreign workers against us using our own tax dollars? Are the pizzas and greens fees they lobby for these contracts with worth that much more than our neighbors being able to feed and clothe their families, send their kids to school, pay for our public workers?

Really?
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Ed Suspicious

(8,879 posts)
1. Some will say it's crazytalk but I'm completely convinced the neoliberals want to reset our standard
Mon Jan 13, 2014, 10:15 PM
Jan 2014

of living. They want us to tank so we can again compete for manufacturing jobs in the global marketplace. The race to the bottom is unfolding before our eyes. TPP, H1B migrant workers doing jobs Americans wont do (at least not at the price international slaves will).

KoKo

(84,711 posts)
4. It's not "crazy talk" it's reality of these days...it seems. TPP will accelerate it...
Mon Jan 13, 2014, 10:43 PM
Jan 2014

if we don't stop it.

 

legcramp

(288 posts)
2. I did a little post about them yesterday but I guess they're OK.
Mon Jan 13, 2014, 10:24 PM
Jan 2014
http://www.democraticunderground.com/10024318836

So CGI is out and Accenture takes over the Obamacare enrollment website

While everyone was crossing a bridge in New Jersey this little noticed news was dumped Friday night.

No doubt CGI had to go, a scapegoat was needed, but just who is Accenture.

Well for one thing they're what's left of Arthur Anderson after the Enron scandal blew up and took them with. Everybody is entitled to one mistake though, right?

Oh and that thing about corporate headquarters being in Bermuda....

In October 2002, the Congressional General Accounting Office (GAO) identified Accenture as one of four publicly traded federal contractors that were incorporated in a tax haven country. The other three, unlike Accenture, were incorporated in the United States before they re-incorporated in a tax haven country, thereby lowering their U.S. taxes. Critics, most notably former CNN journalist Lou Dobbs, have reported Accenture's decision to incorporate in Bermuda as a U.S. tax avoidance ploy, because they viewed Accenture as having been a U.S.-based company. The GAO itself did not characterize Accenture as having been a U.S.-based company; it stated that "prior to incorporating in Bermuda, Accenture was operating as a series of related partnerships and corporations under the control of its partners through the mechanism of contracts with a Swiss coordinating entity."


So it's all good.

Zorra

(27,670 posts)
3. I am fully dedicated to laying waste to the health insurance industry and establishing a universal
Mon Jan 13, 2014, 10:27 PM
Jan 2014

public healthcare system that is regulated under microscopes.

All existing processes must go.

KoKo

(84,711 posts)
5. It's plain that's the way to go...but, we've got to watch it outsourced, money wasted
Mon Jan 13, 2014, 10:45 PM
Jan 2014

and deal with the inefficiencies...I guess...until it crashes and then we move forward. Maybe by 2020 or so?

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