#outsourcing

Was there an announcement I miss? Or is it just speculation?

This is what they hope / think / expect may happen - extreme (they use that word, yes) offshoring and near-shoring (to the East and to the South, respectively):

"Such a rush could lead to "extreme offshoring" in some cases, said Ramkumar Ramamoorthy, a former managing director of Cognizant India, adding that the COVID-19 pandemic had shown key tech tasks could be done from anywhere."

"If Trump's visa curbs go unchallenged, industry experts expect US firms to shift high-end work tied to AI, product development, cybersecurity, and analytics to their India GCCs, choosing to keep strategic functions in-house over outsourcing."

"Either more roles will move to India, or corporations will near-shore them to Mexico or Colombia. Canada could also take advantage," said the India head of a retail GCC."

"While the $283-billion IT industry that contributes nearly 8% of India's GDP may feel the strain, surging demand for GCC services could cushion such a blow, however."

"Lost revenues from H-1B visa reliant businesses could be somewhat supplanted by higher services exports through GCCs, as US-based firms look to bypass immigration restrictions to outsource talent," Nomura analysts said in a research note last week."

More in the article: https://www.ndtv.com/world-news/us-firms-to-consider-shifting-work-to-india-as-trump-hikes-h1-b-visa-fee-9369365

Jensen ("it's too high", poor Jensen): https://www.businessinsider.com/jensen-huang-nvidia-trump-100k-h1b-visa-price-high-immigration-2025-9

What if the NYT covers how Americans have been losing their jobs instead?: https://www.nytimes.com/2025/09/29/business/india-h1b-visa-trump.html

Same with this outlet: https://www.msnbc.com/top-stories/latest/trump-h1b-visa-fee-brain-drain-rcna234471

This is Bee Ees, Canadians and Germans have been complaining about them losing their jobs to foreigners, but poor foreigners, hey: "But now, for many, it’s simply not worth it. An Indian computer science graduate in Texas told Reuters: “I’ll move to Canada or Europe — anywhere that actually wants us.” And other countries do want them: China, Germany and other nations are rolling out new incentives to scoop up the same talent the U.S. is now pushing away."

The unemployment lines in Canada are getting longer and longer. In Germany, unemployment hits 14-year high. For example: https://money.usnews.com/investing/news/articles/2025-09-30/german-unemployment-rises-more-than-expected-in-september

My entire point is that media outlets don't inform, they push narratives and we need to be skeptical and do our homework (everyone, regardless of pol it i cal leaning).

Anyone have any more intel on the proposed contracting out of Shell US legal work management to Norton Rose Fulbright and Baker Botts? Would mean a significant reduction in attorney staff with legal cases and litigation then overseen for key issues by only a handful of Shell senior attorneys. Another cost savings move in the offing.

I know changes are coming but how much and which groups

Hello everyone rebadged. Have you already had one-on-one meetings with your managers regarding merits? Will we receive the same as in Sabre, meaning the standard 2%?

Verizons 3rd party bet on customer service is still backfiring. They lose more customers than they gain just because of the incompetence and inability of those 3rd party teams.

First.... employee RTO mandates looming at Big Green while outsourcing many positions to contact labor that won't be subjected to RTO like employees. 🤔🤷🏻‍♀️

Second....
https://www.inc.com/joe-procopio/return-to-office-mandates-are-about-to-backfire/91244646

_

The 30% onshore and 70% offshore model is cracking! Especially with incompetent resources, vendors and time constraints.

Interesting comments everywhere.

“This is getting out of hand. Huge company wanting to put shareholders first which is fine but these reorgs are getting out of control. If you work at Accenture consider a target on ur back”
“Accenture is pushing all work possible offshore”
"’Bro, you're old...get out!’
Seriously, just say it. We all know you're thinking it.”
“This is somewhat comical because Accenture came into my company 4 years ago and replaced 17 of us with offshore resources.”
“They are a cancer. My company almost hired them but we had enough pull to with management to convince them to go with an onshore only company that probably saved our jobs”
“This is what accenture does. Replaces manual tasks with their own monkeys offfshore.”
“These weren’t manual tasks. We were lead and principal engineers across the IT function. They just figured they could wing it with people who had never used a computer before. I’m beyond caring about how much they must have sc--wed up.”
“I have dealt with Accenture at my current company. Through a common client we had. Accenture was not helpful in doing work in a timely fashion for requests we were working through with the client and ultimately this led to the client churning. They they were not happy about how long it was taking to get things set up, when a lot of the time was spent waiting on Accenture. On top of that Accenture was not as helpful with working with our product as the client was expecting.
So honestly, out of the partner vendors our clients use, Accenture was the worst by far.”

https://www.reddit.com/r/Layoffs/comments/1nr2fmo/accenture_layoffs_ai/

“So goodbye to CEOs and Directors who don’t know sh-t all about Ai ? lol”
“correct 🤣 not a word they knw”
How "Sweet" of you to think that.”
“How the he-l can the define who CANNOT BE RETRAINED? What absolute nonsense is this?!? Tf?”

https://www.reddit.com/r/accenture/comments/1nqtoii/accenture_found_new_reason_to_layoff_staff/

Just like McKinsey, ACN goes around making clients cut jobs (reduce personnel), while they stretch project so they can keep banking for as long as possible without tangible outcomes, there’s nothing AI-magnificent about any of this.

Oh well...

Citigroup has relocated nearly 1,000 tech jobs to India following 3,500 layoffs in China. With AI adoption and skilled Indian teams, the bank strengthens its GCCs, creating new opportunities and making India a key hub for global banking tech.

https://content.techgig.com/career-advice/citigroup-tech-jobs-india/articleshow/124148548.cms

Does anyone know more about this? Thanks!

US OPT tax push coincides with 25% outsourcing penalty on US companies

https://x.com/FinancialXpress/status/1969728070962540590

US lawmakers have proposed taxing international students’ earnings from the Optional Practical Training (OPT) program. Foreign students in the US working for American firms under the OPT program are currently exempt from Social Security and Medicare taxes.

This is in addition to the HIRE ACT.

The HIRE ACT still stuck in congress?

I didn't know that Senator Kiristen Gillibrand attempted something similar in 2020:

https://spectrumlocalnews.com/nys/central-ny/politics/2020/03/06/kirsten-gillibrand-visits-utica-to-talk-about--end-outsourcing-act--

US OPT tax push coincides with 25% outsourcing penalty on US companies

The Trump administration immigration policies in 2025 are set to make study visas tougher for international students and introduce new tax rules that impact the Optional Practical Training program.

US lawmakers have proposed taxing international students’ earnings from the Optional Practical Training (OPT) program. Foreign students in the US working for American firms under the OPT program are currently exempt from Social Security and Medicare taxes.

https://www.financialexpress.com/business/investing-abroad-us-immigration-reforms-put-opt-tax-burden-on-foreign-students-25-tax-on-us-companies-for-outsourcing-jobs-3984525/

Also:

Is the Hire Act stuck in congress?

Does anyone know more?

The new $100,000 H-1B fee only applies when a U.S. company files a petition to bring a foreign worker into the United States on an H-1B visa. Ascension Healthcare outsourced IT to offshore workers in India who remain in India, those workers are not on H-1B visas and the fee does not apply. The cost would only come into play if Ascension or its vendor filed a new H-1B petition to bring one of those workers to the U.S.

There's a proposal for 25% tax on US firms' payments to foreign outsourcing companies.
https://www.hindustantimes.com/india-news/h1b-visa-shock-first-in-double-blow-indian-it-spooked-already-by-tax-proposed-on-outsourcing-from-us-101758368109647.html

Does this mean more outsourcing or more US hiring? I would hope it puts a hiring pause in place. I could see outsourcing being the next target.

STOP STOP STOP outsourcing jobs

https://www.financialexpress.com/business/investing-abroad-h-1b-visa-bill-proposed-to-replace-lottery-system-end-opt-program-for-foreign-workers-3981921/#

As the Wave 1 and Wave 2 Layoffs is now past, rest assured Chevron USA and ABU transition team supervisors have commenced the next 2026 (Waves 3 & 4) pilgrimage to Bengaluru.

Where they encounter beautiful Akshay Sahni (President Punkah Wallah) at ‘The Bengaluru Taj Mahal’ AKA ENGINE’s RMZ Ecoworld Rd HQ.

New 2026 Focus Areas
• CTC / FE Transition Role handover
• New Phase 3 & 4 Workflows with a focus on TAR execution & delayed M&R
• Global MCP execution (with support from Wood/Worley back offices approx. 6000 ENGINEeers & no CVX site experience)
• Remove field inspections
• Remote Refinery & LNG CCR Operator training & transition (the Unions will love that!)

This is the new norm for those with a job.

All aboard MWs sinking ship!

https://timesofindia.indiatimes.com/education/news/us-may-slap-tariffs-on-it-service-exports-which-indian-tech-jobs-are-at-risk-and-who-could-gain/articleshow/123762260.cms

Is Support and R&D considered outsourcing ?

@e1+1k4876rt2

So we want to shift out of the ERP Biz and eliminate any further support for the Maintenance Biz by 2027. Yes, that's right the Maintenance biz for which Siemens by itself pays +50MM per year - a huge amount of revenue will be lost. Our leadership simply says, it's not what we want to be any more.

As was stated in the reference post above, this surely will open the door for 3rd party companies to come in and take over our maintenance biz.

Well, it has already started - have a look: https://www.stocktitan.net/news/RMNI/kbs-partners-with-rimini-street-to-accelerate-its-ai-twpgtdekm3ca.html

KBS is one of largest broadcasting corporations in Korea and they have refused to switch to S4 Hana. So not only will SAP lose the maintenance revenue from this company, it will lose them as a customer on other platforms such as AI investments.

By the time we get to 2027 we will have lost an amazing number of customers to third party maintenance providers and we will also have lost a legacy of future investments from all of our lost customers. What a brilliant idea this was !!

How well our C level team is guiding the company for future growth :-)

Hearing some finance functions will be outsourced. Anyone have details?

US-headquartered Truist Financial plans to set up a tech centre in Hyderabad, and has floated a tender for firms to set it up and initially manage it. Infosys, a Truist vendor, is likely to bid for the contract pegged at least $250 million. The centre aims to hire 3,000 employees over five years.

Pretty obvious WFC only wants H1B or overseas employees. We need to create side hustles. What kind of hustle have people created? I’m in tech and it seems like it would be an easy side hustle but a small biz needs way different things that a large tech enterprise. Any ideas? Suggestions? What have you done?

There seems to be no rhyme or reason in policy and procedure changes in this company. Does anyone have an idea of what departments/how much of Optum's work has been farmed out to private equity firms? Because I feel like that would explain a lot.

Humana has lost sight of the company’s founder’s mission. If read the biography of David A. Jones Sr. he loved and cared for Louisville and America as a whole. He was all for creating jobs for the American working class. He cared for people.

And now Humana is going out of its way to fly in the face of that mission, by replacing older American workers with Artificial Intelligence, H-1B Visa holders, Contractors, and outsourcing jobs to overseas countries. All in the name of greed, to appease and line the pockets of fat cat bankers, such as Goldman Sachs, JP Morgan, Citi Bank, etc. etc.

If you notice in the start of this forum, Humana has the following listed about themselves; that they are an American company. I would argue that is now far from the case, according to any thinking person’s definition.

“About Humana Inc.:
Humana Inc. is a large for-profit American health insurance company based in Louisville, Kentucky.”

What Arvind and IBM have been doing at an increasing pace. Video here => https://www.youtube.com/watch?v=3Ga-krrYgak

No thank you. IBM used to be great. Now it is not even mediocre. The G Man Gerstner cut his teeth at McKinsey which is telling US companies to gut their US workers. Makes Jack Welch of GE look like a saint compared to the carnage IBM has inflicted on it's US workers for 4 decades once the G Man came in 4-1-93.

Good luck to any field team reliant on the Tyler NOC. Oct 31st is last days.

How can I file a lawsuit against Gainwell successfully? As we all know Gainwell is laying us off but giving our Jobs to Indian people. What proof do I need?

This should be done long time ago!

The so-called “low cost country” strategy has gutted entire departments and cost us some of our best people. Moving work overseas might save money on paper, but the loss of knowledge, morale, and quality is enormous. The people making these decisions never deal with the fallout.

https://finance.yahoo.com/news/indias-sector-nervous-us-proposes-064803045.html

BENGALURU (Reuters) -India's massive IT sector faces a lengthy period of uncertainty with customers delaying or re-negotiating contracts while the U.S. debates a proposed 25% tax on American firms using foreign outsourcing services, analysts and lawyers said.

The sector is likely to be on the receiving end of a bill which, though unlikely to pass in its nascent form, will initiate a gradual shift in how big-name firms in the world's largest outsourcing market buy IT services, they said.

Still, with U.S. firms having to pay the tax, those heavily reliant on overseas IT services are likely to push back, setting the stage for extensive lobbying and legal battles, analysts and lawyers said.

India's $283 billion information technology sector has thrived for more than three decades exporting software services, with prominent clients including Apple, American Express, Cisco, Citigroup, FedEx and Home Depot. It has grown to make up over 7% of GDP.

However, it has also drawn criticism in customer countries over job loss to lower-cost workers in India.

Last week, U.S. Republican Senator Bernie Moreno introduced the HIRE Act which proposes taxing companies that hire foreign workers over Americans, with the tax revenue used for U.S. workforce development. The bill also seeks to bar firms from claiming outsourcing payments as tax-deductible expenses.

The bill could not have come at a worse time for India's IT sector, which is struggling with weak revenue growth in its mainstay U.S. market as clients defer non-essential tech spending amid inflationary pressure and tariff uncertainty.

"The HIRE Act proposes sweeping changes that could alter the economics of outsourcing and significantly increase the tax liability associated with international service contracts," EY India's compliance head Jignesh Thakkar said.

In some cases, combined federal, state and local taxes could push the levy on outsourced payments as high as 60%, Thakkar said.

"While its partisan proposal may seem initially attractive, it's ultimately an artificial cost which makes organisations less competitive and profitable globally," said Arun Prabhu, partner at Cyril Amarchand Mangaldas.

Even so, the idea is gaining traction. This month, White House trade adviser Peter Navarro reposted a call from far-right activist Jack Posobiec for tariffs on services, not just goods.

"When political noise turns into regulatory risk, clients quickly insert contingencies, reopen pricing and demand delivery flexibility," said HFS Research President Saurabh Gupta.

"Clients will simply take longer to sign, longer to renew, and longer to commit transformation dollars," Gupta said.

Industry body Nasscom and IT firms Tata Consultancy Services, Infosys, HCLTech, Tech Mahindra, Wipro and LTIMindtree did not respond to requests for comment on implications of the bill.

BACKLASH BECKONS

Companies are likely to lobby hard against the proposed bill and challenge it legally if passed, legal experts and industry watchers said.

"A bill like this would probably face a lot of backlash from U.S. companies that rely heavily on outsourcing, who would likely bring litigation to challenge various aspects of the bill, if it were ever to be passed into law," said Alcorn Immigration Law CEO Sophie Alcorn.

Sweeping restrictions are unlikely given the practical hurdles in enforcing the bill's provisions, experts said.

"More likely is a diluted version, with narrower provisions or delayed enforcement," said HFS Research CEO Phil Fersht.

The bill could also affect U.S. firms' global capability centres (GCCs), which have evolved from low-cost offshore back offices to high-value innovation hubs that support operations, finance, research and development.

"It will be hard to pull back from existing work, but new set-ups and expansion may get impacted," said Everest Group partner Yugal Joshi.

The proposed tax will impact the cost arbitrage advantage that is among the deciding factors when establishing a GCC, said Bharath Reddy, a partner at CAM.

"However, the lack of availability of appropriate human capital in the U.S. will continue as a problem, and which can be addressed in the near future only through outsourcing," he said.

I am loving AT&T’s new company culture under John Stankey. I roll into the Dallas office after 10AM, and collect my badge swipe. Stay until a little bit after lunch. Get to grab something tasty for lunch. As for actual work? I do as little of it possible. Tasks that would take me an hour, I now stretch out to the whole day.

If I have any ideas or thoughts! Cute - I keep them to myself.

That’s all I have to do. I don’t have the same pressure to perform as non-hub people in California or Missouri - fu-k those guys. Just shift your work to non-hub and overseas employees. Stankey does it all the time - like how he shifts blame or responsibility from himself to others. Follow the leader and you’re safe! Fu-k everyone else!

I was outsourced from FT a few years back. That was the worst thing that happened in my career. Going from a nice in-house job to this cost cutting garbage company. I wish that never happened.

https://www.channelfutures.com/channel-sales-marketing/broadcom-hands-services-business-over-to-partners

https://www.moreno.senate.gov/press-releases/new-moreno-bill-would-crack-down-on-outsourcing-fund-american-workers/
The pdf bill here
https://www.moreno.senate.gov/wp-content/uploads/2025/09/The-HIRE-Act.pdf

If you agree post it.

You’ve got Bd Members age 89, 86, 79,79, 72, 68 and so on. In the past, there were board members over 90 and 100 yrs old. Plus, no term limits. When is the next bd meeting ? Any word on Boca people and property sale ? Outsourcing to India or other countries ? What is the latest on projected layoffs ?