In the debate over high-technology work migrating abroad, there has been widespread agreement on at least one thing: The jobs requiring higher levels of skill are the least at risk. \nRoutine software programming and testing jobs, analysts agree, are the ones most susceptible to being grabbed by fast-growing Indian outsourcing companies. By contrast, the people who devise the early blueprints for projects -- the software architects -- have been regarded as far less likely to see their jobs farmed out. \nBut Microsoft contract documents show that as far back as 2001 the big software maker had agreed to pay two Indian outsourcing companies, Infosys and Satyam, to provide skilled "software architects" for Microsoft projects. The documents were obtained earlier this month by WashTech, an organization of technology workers based in Seattle, which gave copies to The New York Times. \n"The policy prescription you hear from people again and again as the response to the global competition of outsourcing is for Americans to move to high-end work," said Ronil Hira, an assistant professor for public policy at the Rochester Institute of Technology. \n"It's important to dispel the myth that high-end work is immune to offshore outsourcing," he said. \n"What is not clear," Hira added, "is how much of that high-end work will go abroad." \nA Microsoft spokeswoman, Stacy Drake, said that as a matter of policy the company did not comment on individual contracts with suppliers. But, she said, "We often use outside companies for projects." \nThe outside contractors, Drake said, are used to bring in specialized expertise Microsoft may not have in-house or to bring additional technical support onto a project. \nStill, Drake said, building the "core intellectual property" in Microsoft products is left to full-time company employees. \nThough definitions vary, software architects are highly skilled workers who often earn six-figure salaries in the US. The Microsoft contracts with Infosys and Satyam show that the work of software architects, senior software developers and software developers was being done by employees of the Indian companies working at Microsoft facilities in the US. \nTheir work did not come cheap for Microsoft, which was billed US$90 a hour for software architects, or at a yearly rate of more than US$180,000. Senior software developers were billed at US$72 an hour and software developers US$60 an hour. \nThe on-site work, said Hira, an expert on offshore outsourcing, is usually done by Indian software engineers who come to the US on H-1B visas, which allow foreign workers to be employed in the US for up to six years. \nThe Indian workers themselves are paid a fraction of what their employers collect. The top annual salaries paid by Indian outsourcing companies to Indian software experts working in the US are US$40,000 or so, Hira said. \nThe contracts also say that for short stints of work, less than 90 days, Microsoft will pay for round-trip economy airfare for travel between India and the US. \nThe contracts also include work done in India, by project managers and by software development and testing engineers. The billing rate for this work ranges from US$36 an hour to US$23 an hour. \nA spokeswoman for Infosys said the company did not comment on its contracts, and a Satyam spokesman could not be reached. \nCritics of the outsourcing trend regard such agreements with Indian contractors, with work done both in the US and in India, as a step toward shifting more and more skilled technology jobs overseas. \n"Microsoft has hired vendors whose whole reason for being is to transfer work offshore," said Marcus Courtney, president of WashTech, an affiliate of the Communications Workers of America. \nThe foreign competition for work at Microsoft, Courtney said, will help the company's management put more pressure on wages for its American workers and reduce employee benefits. Last month, Microsoft announced that it planned to cut costs by an estimated US$80 million a year by trimming prescription-drug benefits, tightening parental-leave policies and making it more expensive to buy Microsoft shares through the employee stock purchase plan. \nDespite its use of foreign contract workers, Microsoft expects to add 3,000 to 3,500 full-time employees to its US payroll of 37,000 in the fiscal year that ends next month.
UNDETERRED: The US chip designer’s plan showed that Taiwan remains attractive for investment by global companies despite cross-strait tensions, Wang Mei-hua said US graphics chip designer Nvidia Corp is planning to relocate its Hong Kong-based logistics center to Taiwan, Minister of Economic Affairs Wang Mei-hua (王美花) said on Wednesday. The government had been in discussions with Nvidia regarding tax incentives to facilitate the move since last year, Wang said in an interview with the Central News Agency, adding that the two sides had reached a consensus. Wang did not provide details about the timetable for the move or the planned tax arrangements for Nvidia. The relocation would boost the local economy, as Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) is a major supplier of graphics processing
Kaohsiung police last week busted a money laundering operation suspected of seeking to interfere in tomorrow’s local elections. The operation was allegedly headed by a man surnamed Lee (李), who had received NT$9.5 billion (US$306.18 million) from China over the past six months, Kaohsiung police said yesterday, adding that Lee’s ring is suspected to be part of a larger Chinese effort to interfere in the elections and support pro-China candidates. Officers arrested Lee, 35, and his girlfriend, searched his mansion, and seized the money he had allegedly received from China and three luxury vehicles, police said. The operation was disguised as an online
‘NEWEST’: The company’s Arizona plant is to produce 5-nanometer chips in the initial stage and would later manufacture 3-nanometer chips, Morris Chang said Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) founder Morris Chang (張忠謀) yesterday confirmed that the company plans to produce its most advanced 3-nanometer chips in the US as part of the company’s phase 2 plan at its plant in Phoenix, Arizona. The 91-year-old entrepreneur, who has been appointed as Taiwan’s envoy to APEC six times, yesterday morning held a news conference at the Presidential Office Building to discuss his delegation’s accomplishments at this year’s APEC Economic Leaders’ Week in Bangkok, which ended on Saturday. He was asked whether TSMC has plans to build advanced chips in the US. “TSMC’s plant in Arizona is
SURRENDER PLEDGE: Prosecutors said Hsiang Te-en was not charged with treason or contravening the National Security Act, because evidence had been removed The Kaohsiung District Prosecutors’ Office yesterday charged army Colonel Hsiang Te-en (向德恩) with corruption, accusing him of pledging allegiance to China and receiving payment from Chinese operatives to work as a spy. Prosecutors asked a court to sentence Hsiang to 12 years in prison. Hsiang is head of the Kaohsiung-based Army Infantry Training Command’s Operations Research and Development Division. He allegedly signed a “pledge of surrender” and promised to “serve, as best he may, in his office for the benefits of the motherland in the event of war across the [Taiwan] Strait,” the office said. Hsiang could not be charged with contraventions of