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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.