Ohio Woos TCS as US States Beg India for Jobs
Dayton – The Business Standard reports today that Democratic Ohio Governor Ted Strickland has “enticed” Indian outsourcing company Tata Consultancy Services (TCS) to open up shop in Cincinnati by throwing $19 million in tax credits and an invitation to a state dinner at the governor’s mansion. Strickland said “The economy is difficult and I will go wherever I can to find jobs.” He will go wherever he can to find jobs? To Indian outsourcers? What is wrong with that picture? Why are American governors pressing or begging Indian outsourcing companies “for jobs”? To read his quote, one would think that Ted needs a job. By the way things are looking for his approval ratings, however, he may have to find a new gig real soon, as Strickland’s approval ratings are in a free fall and now he finds himself dead even with Republican challenger John Kasich. Although the TCS website says they “offer a wide range of of IT services, outsourcing and business solutions”, don't we have enough American corporations and contractors that also provide these “solutions” who could use the work? Could Strickland's freewheeling handling of the people of Ohio's taxpayer money have anything to do with his sudden unfavorability?
“I certainly don’t see it as consorting with the enemy,” says Strickland, who ended up sharing a table with Tata Group Chairman Ratan Tata and India’s Commerce Minister Anand Sharma at the November 25 White House State Dinner for Indian Prime Minister Manmohan Singh. “These are good, solid jobs,” adds the governor. “Jobs that we feel will be long-term, and that we hope will increase in numbers.”
As LWOH recently reported in this post Corporate Welfare Roulette, the lure of a State's taxpayer dollars to corporations doesn't tend to hold up to the promise of actually delivering jobs, or at least delivering near the promised number. The Business Standard article notes that although TCS hired a few hundred American employees in 2009, it “took on tens of thousands of newbies in India.” Does this mean that TCS may have a problem attracting American employees at U.S. compensation levels? In addition, TCS now has more than 11,000 Indians working in the US on temporary visas, while another Indian outsourcing company, Wipro has 7,000. With soaring levels of unemployment for US citizens, these figures add up to mean that there is a 17,000 Indian surplus here on temporary visas who could return home so Americans can take those jobs.
As far as Strickland's most generous offer to lure the foreign based outsourcer, how many American corporations would have taken this Cincinnati deal said to “create” jobs for American citizens in the state of Ohio? This report doesn't say, but maybe the last Thanksgiving shindig at the White House might suggest a few other possible reasons why America's governors are chomping at the bit to sell out U.S. jobs and infrastructures to India by systematically disabling the US economy from the inside out and creating record income/wealth gaps in this neo-frat boy serf lord state formerly known as America.
Hey, ho, a-way to go Ohio!
Party on, plebes!
It's Not the Economy, Stupid. It's YOUR JOB.