Associated Press – May 25, 2006:
Sprint Nextel is suing computer giant IBM, saying it failed to live up to promises it could save Sprint money by taking over some of its programming work.
Sprint signed a five-year deal with IBM in 2004 valued at $400 million. The outsourcing agreement said that IBM would take over certain programming functions for Sprint. About 1,000 Sprint employees were transferred from Sprint to IBM as part of the deal.
Sprint filed a lawsuit this week in federal court that claims it never saw the promised savings. In fact, the company says the contract cost the company money last year. The lawsuit says IBM owes Sprint at least $6.4 million for 119,000 hours of uncompleted work.
These Indian companies run their companies in America as they do in India. Recently I read about Tata Consulting who is being sued by employees for deducting too much taxes and retaining the refund checks.
http://www.infoworld.com/article/06/02/15/75394_HNtatafaceslawsuit_1.html
I personal have heard of iFlex gave employees L1 visa holders a W2, completed 1040s for reimbursed expenses. But the employees never paid US taxes on wage income or expense reimbursed income, but the employee somehow got a refund check which they were required to turn over to the company. I don’t understand how someone who isn’t required to pay US taxes, gets a refund. I think someone should research this. I work hard and pay all my taxes and always have to pay more at the end of each year and find this whole thing incredibly disturbing because my IT husband was unemployeed yet I worked with teams where more than 60% were Indian and we had such communication difficulties as well as poor quality work.
Please don’t use my name or email address.
I confused with the picture which is about Offshoring, the post is about Outsourcing. The two are totaly different. I guess its just another cheap shot at Bush, go figure.
“I confused…”
So what’s new?!
#1 – the tax deal that makes outsourcing to india “cheap” includes this tax “break”, amoung others. It started in 2000 with Clinton and was increased under the first Bush tax give away.
#2 – No its not. IBM’s main development group is in India. that is how IBM, EDS, Accenture, Deloitte and other claim they save the customer money. How do I know? – I work for one of the biggest outsourcers.
BTW Bush deserves every shot leveled at him, cheap or else. Now go pray to our Bush party doll.
Something just doesn’t add up on this.
In January, Sprint Nextel was amending the contract with IBM. The original contract was with Sprint and then it merged with Nextel. Obviously the situation has changed since the contract was signed.
Secondly, also in January, Sprint Nextel and IBM worked out a $2 Billion, five yr deal on having IBM handle the call center duties.
Re: picture of Bush with the caption…. Begs the question, when is the whitehouse administration going offshore? I reckon offshoring could produce good, cheap whitehouse administrations, with included presidents being smarter, working 17 hours a day, never taking vacations (just 1 week a year) and actually speaking better english, and all for a tenth of the price.
BWAHAHAHAHAHAHAHA!
It’s called learning. The nice consultants are out to take your money, not save it.