07.22.07
Posted in Contract Direct to the End Client, H1-B Visa, H1B, IBM Tivoli, L1 Visa, Offshoring, Offshoring Intellectual Property, Outsource the Outsourcers, Outsourcing Intellectual Property, Software Rights, The Monopoly Game Applied To The IT Industry, Tivoli, Tivoli Access Manager, Tivoli Identity Manager, WebSphere, WebSphere Commerce, WebSphere Consulting, WebSphere Portal, outsourcing at 10:54 am by Edward Pellon
The Peningo Opinion Blog – Rye, New York – Peningo Systems has recently been selected to provide WebSphere Commerce Development and Support Consulting Services to a leading NASDAQ Bioscience Research firm.
While pricing will always be a factor in the selection process by the “End Clients”, Peningo Systems was selected to provide WebSphere Commerce Development and Support services base on the combination of price and high level of quality and expertise in the Consultants that will be providing the services. The selection of Peningo System is an example of successful bypass of these Prestigious Names in IT Consulting and Professional Services, which Peningo often refer to as “The Prestigious One”.
Peningo will provide the WebSphere Commerce Development and Support services with a team of Senior Consultants with expertise in WebSphere Commerce development and system administration, based here in the U.S.A. . This level of Seniority and Expertise is rare to find when an “End Client” pays top dollar, utilizing the services from one of the Prestigious Names in IT Consulting and Professional Services.
The reasons these Senior level Experts are hard to retain when using one of the Prestigious Names in IT Consulting and Professional Services, is that their “Excessive Profit Margins” would NOT allow for these Senior Level Experts to be compensated properly. As a result, many of the Senior Consultants and experts in their respective technical fields chose to be employed elsewhere and are NOT available via one of the Prestigious Names in IT Consulting and Professional Services. To fulfill the Services to the “End Clients”, these “Prestigious Ones” look to retain resources who are:
- Paid and command a lower salary. Many of these individuals are not Senior Level Consultants or Technical Experts.
- On H1-B or L-1 Visa. Many times these Visa based Consultants are used because they are cheaper than Americans and Permanent Residents. As a result, the quality level of such candidates is suspect.
- Resources located Offshore on the other side of the globe to provide the “WebSphere Consulting Services”.
For these reasons above, the quality of services from these “Prestigious Ones” has declined drastically. The founders of Peningo Systems has thrived for years in providing Consulting Services with the Senior Level Experts at rates that are below the rates of the “Prestigious Ones” with their sub-par to mediocre talent.
Aside from WebSphere Commerce, Peningo Systems supports and provides Consultants with expertise in many areas including, WebSphere Portal, WebSphere Eclipse Development, WebSphere Architecture, System Security Architecture, Identity Management, Access Management, Tivoli Access Manager and Tivoli Identity Manager, DB2 – UDB, SAP, Remedy, Peregrine / HP Openview AssetCenter and ServiceCenter, and J2EE based systems architecture and development. To see Peningo Systems areas of expertise, please go to the Peningo Technical Areas page.
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07.10.07
Posted in H1-B Visa, H1B, IT Outsourcing, Intellectual Property, L1 Visa, OffShoring Jobs is Tax Evasion, Offshoring, Offshoring Intellectual Property, Outsource the Outsourcers, Software Rights, The Monopoly Game Applied To The IT Industry, outsourcing at 12:39 pm by Edward Pellon
Unfortunately, in the mass media today, there are very few who see and are willing to report on the injustice, abuses and corruption that is behind the motivation of the movement to Outsource IT jobs Offshore. Lou Dobbs is one of the few that for years, has stood out of the crowd, defending the Middle Class of America.
Recently, an immigration law firm posted a video of their techniques to avoid hiring Americans, thus skirting the intent of the law, in order to bring in foreign workers on H1-B. The abuses of the H1-B Visa program has been going for years, and is just another dimension on this attack on the Middle Class of America. In the video below, Lou Dobbs takes on the H1-B issue:
[youtube]http://www.youtube.com/watch?v=Fx–jNQYNgA[/youtube]
While the H1-B abuses are real and truly harm opportunity for Americans, I would like for Lou Dobbs to open his eyes to another dimension that is more dangerous to the American Middle class, and that is the use and abuse of the L-1 Visa program. In my opinion the “Prefect Storm” that is currently attacking the IT Industry is the combination of the L-1 Visa and Outsourcing IT Jobs Offshore.
I have been in the business of providing IT Consultants for 20 years, so I have seen it all. One of the outrages is that a Foreign Corporation who is one of the largest Outsourcers of IT Jobs Offshore in year 2006 had approximately 4000 H-1B Visas and approximately 4000 L-1 Visas, for a total of 8000 new Visas in the USA for just year 2006. The majority of these Visas went to workers from India. While the H-1B Video shows clear abuse in terms of avoiding the “Intent” of the Law, the abuses in the L-1 Program, in my opinion, are more rampant than you’ll find in the H1-B program.
I am planning on requesting an Amendment to be added to the Immigration bill. I feel that my proposal should become America’s Proposal. I would like to have the Amendment referred to as the “H1-B and L-1 Visa Social Security and Medicare Recovery Amendment”.
In order to bring some equity back to the American tax paying workers, we at Peningo Systems would like to propose the following as the “H1-B and L-1 Visa Social Security and Medicare Recovery Amendment”:
- Any company that hires an H1-B or an L-1 Visa to work in the United States must pay a tax that is equal to 100% of the “Employer and Employee” portion of the Social Security and Medicare tax. This is important, since it takes away one of the “MAIN” incentives to fire an “AMERICAN WORKER” and replace them with an H1-B or L-1 Visa based worker. As it is, some of the H1-Bs, L-1s and their respective employers could be EXEMPT FROM PAYING SOCIAL SECURITY AND MEDICARE TAX! Also, many companies pay the employees on these Visas far less than an American, resulting in a lower tax overhead for the companies. Also by placing 100% of the FICA obligations on the company, even if the Visa holder is being paid less than the Americans, it gives some insurance that the hiring of such individuals is not strictly based on “Cost of Labor”. This Proposal is also very important, since it addresses an issue that is near and dear to every American, and that is, supporting Social Security.
- To combat the abuse of low pay to the H1-B and L-1 Visa holder, which results in the under cutting of the American based worker, which is a violation of the letter of the law, the Federal government must come up with a “Up To Date” Salary survey that would accurately reflect what an American actually would get in the free market place. Then the H1-B or L-1 Visa holder MUST be paid in the UPPER 10% of the Salary range…that’s right…. the H1-B or L-1 MUST be paid in the UPPER 10% of the Salary range. This would insure that H1-B and L-1s are treated, in terms of cost, the same as an American and that the H1-B and L-1 Visa holder is truly a talent that is needed! Also, to combat the “Tax Evasion” aspect of these programs, by paying the Visa Holder in the upper range of the Salary Survey, the “Tax” base that the Employee is being paid at would be in par with what Americans pay. Let’s remember the “Spirit” of these Visa programs is to bring talent that cannot be found in the USA marketplace. If this is truly the case, then in the free market, these individuals should command a higher salary than Americans, since they are “SO SPECIAL”. Unfortunately, they only special quality most of these Visa holders have over Americans is that they “ARE CHEAPER” than Americans.
If we implement these 2 proposals, then the H-1B and L-1 would compete with an American based worker on the merits of his/her abilities and not solely based on the fact that the H1-B’s or L-1’s resume looks good and the H1-B or L-1 is 10s of thousands of dollars cheaper than the American.
This is a fair way to bring equity back into the US as well as protect our Tax Base from these Tax Evading scheme of hiring foreign workers and avoid paying for Social Security and Medicare tax.
With the Outsourcing IT Jobs OffShore and/or using employees who are H1-B Visa or L-1 Visa holders, many times the cost of “Services” to the “End Client” is slightly effected. Between huge markups by some of the Larger Outsourcers and/or the combination of multiple layers of subcontractors involved in providing the IT Services with their respective markups, the cost to the “End Client” is still high. All the Offshoring of IT jobs and hiring of H-1Bs & L-1 Visa holders offers is higher profit margins for the Outsourcers…….WHILE PROVIDING LOWER QUALITY OF SERVICE TO THE END CLIENT!!! It is very true the old saying that Power corrupts and that Absolute Power absolutely corrupts. It is time for the Consultant and the End Client to bypass these “Prestigious Ones” which every day are looking more like ruffians and knaves.
We founded Peningo Systems to combat this problem of multiple layers of markups that ends up in between consultant and the end client.
Peningo’s solution to this problem is to bypass these “Offshore Outsourcers” 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.
Lou Dobbs is a hero, since he is one of the few who is willing to stand up a fight for the American worker. I think to complete the coverage of this circle of this attack on America, Lou Dobbs needs to focus on the IT Industry’s “Perfect Storm”, the combination of the L-1 Visa Program with Outsourcing IT Jobs Offshore and its effect on taking opportunity away from America and cheating every American.
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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07.04.07
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, The Monopoly Game Applied To The IT Industry, outsourcing at 10:05 pm by Edward Pellon
As an IT Professional for over 20 years running an IT Consulting firm, I have seen year after year changes in our Industry that negatively impact the American people and our U.S. based businesses in the IT Industry. Many companies have turned to Outsourcing Offshore as means to cut cost, but this cut in cost comes with price…and that is … the destruction of Opportunity and the American Dream for our experienced IT Professionals, as well as, lost opportunity for our kids who are innocently pursuing degrees in Computer Science.
In my opinion the largest culprits in the demise of our industry are just hand full of IT firms that provide IT Consulting. Some of these firms are foreign based firms operating in the USA. These firms main product line is providing the Outsourcing of IT, which is mostly supported in a foreign Offshore nation.
For the business that these have not yet Outsourced Offshore, they must provide support here in the USA. For these firms, the majority of the hiring in the USA are of individuals who are on H1-B visas or L-1 Visa, and in most cases, are paid well below the standard pay that an comparable American would get.
The Offshore Outsourcers are motivated by the desire to support USA operations with offshore personnel which are “NOT” subject to Federal, State, Social Security, Medicare taxes. In order to be able to avoid paying the matching Social Security, Medicare and unemployment insurance many corporations have opened offshore subsidiaries or engaged proxies to do so for servicing USA based business, that if done within the USA, will be subject to all taxes. Not satisfied with the ill gotten savings obtained by illegal activities, now these “Prestigious Ones” are compounding the crime by a scheme to avoid paying Federal Income Tax.
The first step in the scheme is to create profits overseas (that is why the emphasis to transfer offshore as many jobs as possible).
The second step of the scheme is to bring back to the USA those profits without paying any Federal Income Taxes. The IRS rules allows the firms to defer paying Federal Income Tax on overseas profits till such a time as those profits are brought back to the USA. In order to evade this regulation the “Prestigious Ones” use the overseas profits to buy back the Corporation’s Stock with the overseas currencies and then the overseas suppliers pay for services with the Corporation Stock acquired from the overseas profits, in violation of the intent of the law and its regulations.
This places consultants which are USA persons at a tremendous disadvantage as any USA based operation has to pay all taxes.
The “End Clients” using the services of “The Prestigious Ones” have become victims of this scheme by being associated to such illegal activities.
The irony of this whole cost cutting effort by Outsourcing IT Jobs OffShore and/or using employees who are H1-B Visa or L-1 Visa holders, is that many times the cost of “Services” to the “End Client” is slightly effected. Between huge markups by some of the Larger Outsourcers and/or the combination of multiple layers of subcontractors involved in providing the IT Services with their respective markups, the cost to the “End Client” is still high. All the Offshoring of IT jobs and hiring of H-1Bs & L-1 Visa holders offer is higher profit margins for the Outsourcers…….WHILE PROVIDING LOWER QUALITY OF SERVICE TO THE END CLIENT!!! It is very true the old saying that Power corrupts and that Absolute Power absolutely corrupts. It is time for the Consultant and the End Client to bypass these “Prestigious Ones” which every day are looking more like ruffians and knaves.
We founded Peningo Systems to combat this problem of multiple layers of markups that ends up in between consultant and the end client.
Peningo’s solution to this problem is to bypass these “Offshore Outsourcers” 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.
To All Americans:
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.
About Peningo Systems:
Peningo Systems supports and provides Consultants with expertise in many areas including:
To see Peningo Systems areas of expertise, please go to the Peningo Technical Areas page.
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