04.30.07
Posted in H1B, IT Outsourcing, Intellectual Property, OffShoring Jobs is Tax Evasion, Offshoring, Offshoring Intellectual Property, Outsource the Outsourcers, Outsourcing Intellectual Property, Software Copyright, Software Intellectual Property, Software Rights, outsourcing at 3:48 pm by Edward Pellon
In the past the IT Industry and specially Peningo Systems Inc. have been very careful to secure the Client’s rights in works developed for the Client by the Consultants working in the development of computer based systems as well as securing confidentiality agreements over such works.
The larger IT corporations in America (which we refer them as the “Prestigious Ones” ) in their efforts to engage in “Tax Evasion” by outsourcing offshore the development work of software (The offshore developers are not subject to USA taxes and the US corporation avoid paying matching Social Security, Medicare and Unemployment Insurance), fail to secure the Software Rights and Confidentiality, agreements that would be protected if celebrated under USA laws.
The offshore developers are not bound by USA laws, therefore, there might be some surprises to those using American Firms that have engaged offshore resources and the foreign developer may want one day to claim royalties over the software that you the “end client” have paid in full. As customary in our USA based industry such works are contracted as belonging to the “end client”. Under the offshore circumstances it will no longer be so.
In addition, and for the same reasons stated for the Software Rights, confidentiality of the “end client” information, including that of its Customers may be compromised, as the foreign elements offshore will be free to sale such information to other organizations in the USA or world wide.
Peningo’s solution to this problem is to bypass these “Prestigious Ones”, and with the support of Peningo Systems Inc., contract directly between the consultant (a USA person) and the “end client”, thus, eliminating these “Prestigious Ones” who are failing to secure the “end client’s” Software Rights and Confidentiality and will leave the “end client” and their customers exposed to the abuses of foreign nationals who are beyond the reach of USA law.
If you wish to voice your opinion, you are welcome in commenting to this post. If you wish to voice your opinion to a greater authority….Congress and/or your State Representatives, please go to the Peningo Advocacy Assistance Page.
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04.19.07
Posted in H1B, IT Outsourcing, OffShoring Jobs is Tax Evasion, Offshoring, Outsource the Outsourcers at 10:52 am by Edward Pellon
There is an ongoing effort in the IT industry mainly on the part of the Larger IT Service Organizations to bring into the USA foreign nationals to work in the IT industry. This importing of personnel under the H1-B and the L1 visas are basically motivated by cost savings, as the individuals under those visas are either paid a lower salary than Americans. This results in a lower taxing base, or possibly an exemption from Social Security and Medicare taxes. The employers save a similar amount as there is lower to no matching taxes by the “employer”. In addition the foreign nationals are not paid prevailing wages, that is required by law.
Each State labor department establishes what is supposed to be prevailing wages and based on our 30 years experience in the industry those prevailing wage surveys runs about 50% to 70% below the real prevailing wages.
Some American Corporations have set up branches in India and then import those Indian employees under the L1 visa which is supposed to exist for the purpose of providing USA based training to foreign nationals of those corporations. In reality, due to the immense numbers of L1s in the USA, this represents another source of cheap labor and evasion of USA laws.
The purpose of the H1-B is to facilitate to American Business the importing and use of exceptional talented individuals that bring to America knowledge, which is exceptional, or so rare that it could not be found in our IT technical labor market.
Due to the economic incentives mentioned, and the lack of supervision by our government, the H1-B and L1 programs have been prostituted to the point that a foreign corporation (from India ) established operations in the USA and have become the major user of H1-B visa, to the degree of representing 30% plus of all H1 visas. Many of these foreign corporations bring the H1-B individuals to work in projects in the US, while also working on selling to the US based client the Outsourcing of the work to India. The irony here is that the H-1 Visa program was designed to bring individuals that would contribute to growth of our economy and growth of jobs, however the H-1s are now used as front line soldiers by the Indian based Outsourcing firms in the marketing to US clients to Outsource Jobs out of America.
We at Peningo feel that the situation of the H1-B and L1 visas have become so corrupt that the only solution is to eliminate them immediately, and have a period of dialog amongst ourselves as to how we are going to handle and supervise the original objectives of H1-B and L1 visas.
If you view the video regarding a immigration law firms practices on the H1-B process below, you’ll see why we need to freeze on the H1-B process and what we mean by corrupt !!!!!
[youtube]http://www.youtube.com/watch?v=TCbFEgFajGU&eurl=http%3A%2F%2Famazingpetsvideo%2Eblogspot%2Ecom%2F2007%2F06%2Fperm%2Dfake%2Djob%2Dads%2Ddefraud%2Damericans%2Dto%2Ehtml[/youtube]
If you wish to voice your opinion, you are welcome in commenting to this post. If you wish to voice your opinion to a greater authority….Congress and/or your State Representatives, please go to the Peningo Advocacy Assistance Page.
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Posted in Contract Direct to the End Client, H1B, IT Outsourcing, OffShoring Jobs is Tax Evasion, Offshoring, Outsource the Outsourcers at 10:07 am by Edward Pellon
Many of the prestigious American IT Corporations committed to “Globalization” and “Offshore Outsourcing” of American Jobs are mostly driven by the opportunity to engage in big time “Tax Evasion”.
The reason for outsourcing of American Jobs by these “Prestigious Ones” is the fact that the employer is getting away with retaining employees in the Offshore location at lower salaries and engaging in “Big Time Tax Evasion” as those employees do not pay Federal, State, Social Security, and Medicare tax. The employer avoids paying matching Social Security and Medicare taxes, as well as, Unemployment Insurance, while the employer uses the services of the offshore employee to support operations in the USA. If the operations were supported from a location within the USA, the companies would be require to pay all of the Taxes.
If this is not “evil” enough, these Offshore Outsourcers are the major importers of “Third World Attitudes” toward USA IT employees. The once gracious attitudes and sense of justice toward the IT labor force has been modified to reflect the “Prestigious Ones” attitude that Americans are now at the par with Third World Economies employees.
Peningo’s solution to this problem is to bypass these “Prestigious Ones”, and with the support of Peningo Systems Inc., contract directly between the Consultant and the End Client, thus, eliminating these “Prestigious Ones” excessive Mark-ups and allowing for increased compensation for the Consultant while lowering the costs for the End Client.
Let us Outsource the Offshoring Outsourcers of jobs and Importers of deplorable Third World attitudes.
If you wish to voice your opinion, you are welcome in commenting to this post. If you wish to voice your opinion to a greater authority….Congress and/or your State Representatives, please go to the Peningo Advocacy Assistance Page.
offshoring
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04.05.07
Posted in Contract Direct to the End Client, H1-B Visa, H1B, IT Outsourcing, Intellectual Property, L1 Visa, OffShoring Jobs is Tax Evasion, Offshoring, Offshoring Intellectual Property, Outsource the Outsourcers, Outsourcing Intellectual Property, Software Copyright, Software Intellectual Property, Software Rights, The Monopoly Game Applied To The IT Industry, outsourcing at 10:05 pm by Edward Pellon
The future of our IT Industry in the USA is in jeopardy due to practices of some of the more “Prestigious” names in our IT Industry. We will refer to these organizations as the “Prestigious Ones”.
The claim by the “Prestigious Ones” is that outsourcing offshore is limited to low skills technical jobs. The way America acquired our high skills workforce was due to the opportunity to train and grow through the ranks of low skill technical jobs.
Is it possible that the “Prestigious Ones” expect our college graduates to take jobs in India to train for the high skill jobs in America? Of course not! The fact is that they do not care as long as their excessive Margins are protected.
The Offshoring of IT Jobs leaves our kids, when they come out of College, with no opportunities. If this trend is left untouched, the IT Industry and the technology that has kept America prosperous and free will be compromised.
Peningo’s solution to this problem is to bypass the “Prestigious Ones” and contract directly with the “End Client” thus allowing the IT consultant to obtain higher rates while the “End Client” obtains a cost reduction thanks to the elimination of the “Prestigious Ones” excessive Mark-ups.
The advantage of Offshore Outsourcing is based, to a point, in the lower offshore salaries and mostly to the fact that the “Prestigious Ones” will be able to service USA based businesses with a labor force that is not burdened by the USA tax system (Federal, State, Social Security, Medicare and Unemployment Insurance). Peningo’s approach will eliminate the “Prestigious Ones” from the USA market and obviously the need to Outsource Offshore American jobs will be eliminated.
Let us Outsource the Outsourcers of Jobs Offshore!!!!
If you wish to voice your opinion, you are welcome in commenting to this post. If you wish to voice your opinion to a greater authority….Congress and/or your State Representatives, please go to the Peningo Advocacy Assistance Page.
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