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May 10, 2007

Alternative Strategy For Offshore Outsourcers

This is an open letter to the Corporations who are engaged in the Outsourcing of our IT Jobs Offshore.

 

To All Firms Involved in Offshoring IT Jobs:


Your present efforts of reducing your operating costs by engaging in Offshore Outsourcing to support USA based operations is headed for failure.

The economic advantage of such a strategy is based on the fact that the offshore resource is not subject to USA Federal, State, Social Security and Medicare taxes and that you will not have to pay matching Social Security, Medicare taxes nor pay the unemployment insurance taxes.
 

You must be aware by now that such a strategy is doom to failure as it is based on a Tax Evasion effort and as the effort to offshore grows, the tax burden left in the USA based employees will have to increase to compensate for the “USA Tax Exemption” that the offshore resources and you illegally  enjoy.  That will generate a backlash in the USA to have the laws respected and enforced and you will be in the wrong side of this battle.   The use of cheap labor in large quantities is not a winning strategy and it is condemned to failure.
 

A more enlighten strategy will be to use the old and proven method of improving costs and productivity by systematization and automation.  It is true that such efforts will lead to increased productivity by the fact that fewer employees will be able to do more work.  This process takes time to implement and that delay in the process allows for the labor force to relocate to new endeavors where their services will be in demand without a major disruption and the increased productivity by allocating the employees to where they are needed will raise the standard of living of all concerned and guarantee your organization’s continued acceptance in the USA market.
 

As to the Offshore efforts, it will prove very beneficial to the USA and your organization if you develop the Third World creating new markets but not by having your efforts financed by the USA taxpayers.
 

It is understandable that most of our CEOs are the product of the bureaucracy and that the time of the owner-entrepreneur is past and therefore with that we have lost the vision that those entrepreneurs possessed.  It will serve us well to re-learn those skills or face the decline and fall of those that insist on using the general public as indenture servants.

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.

 

May 01, 2007

Strategy For An American IT Consultant In An Offshore World

 

Ant vs. TurkeyWith all these “prestigious” names in Information Technology doing all they can to monopolize our IT Consulting Industry…….while driving down the Consultants hourly rates…….and……shipping  as many jobs as they can offshore…it’s enough to drive one crazy!!!

Driving the effort to Offshore jobs is the fact that an American corporation can offshore jobs to individuals that are not subject to Federal, State, Social Security taxes and the employer does not have to pay matching Social Security and Medicare taxes, as well as, avoid paying Unemployment insurance.  These offshore resources are then used to support operations in the USA, that if supported locally, will be burden by the associated costs of taxation.  This tax evasion could not be perpetuated without the participation of all of our Government regardless of political stripes.  It is not important to the IT Consultant why is this happening, but the need to face the reality that it is happening.

Those that claim that this is free enterprise let us assume for argument sake that in order to level the field of competition…. from now on all Americans are exempt from taxation.  Obviously this is not a satisfactory proposal, but that is what the Outsourcers believe except that this “American tax exemption” is only for offshore resources.

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.

Peningo seeks to join with the individual Consultants and the End Client together to reverse this trend by cutting out these “Prestigious Ones”,   Let us fight back by Outsourcing the Outsourcers!!

“One Ant can not take down a Turkey but thousands of Ants can”

Peningo advocacy is concentrated in the IT Industry and within that for that segment of the market that provides advance software support and development.  For the larger market of Americans who are besiege by a similar problem we invite them to join our Grass Roots movement to change the minds of our Government and the CEOs of American corporations who are engaging in blind Offshore “selves flagellation”

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.

Many of our Representatives are not leaders, they only follow trends and it is up to us to create a new trend.