Mercury News | 12/19/2003 | Offshoring labor savings don't add up: "Offshoring labor savings don't add up
By Mike Cassidy
Mercury News

Uzair Sattar had heard all about the beauty of moving work overseas: cheap labor, round-the-clock operations, bigger profits.
Offshoring was the thing to do, the wave of the future.
So, when he launched his business software company two years ago, he hired three engineers in Hyderabad, India, to develop his product. He quickly expanded to seven engineers.

``Then things didn't go so right,'' says Sattar, chief executive of Proteligent of Sunnyvale.

There have been a gusher of stories about tech companies moving thousands of U.S. jobs to India, China and other countries where labor is cheap. But it turns out, offshoring brings with it its own business problems."

 
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Think tank calls for reform of Arizona's jobless program


Christine L. Romero
The Arizona Republic
Dec. 17, 2003 12:00 AM


Arizona should fix its unemployment system to stop multimillion-dollar waste due to fraud and other flaws, a Goldwater Institute report suggests.

Arizona's jobless workers get $205 a week maximum, the lowest rate in the nation, and legislators are considering increasing that amount.

The report, commissioned by the conservative think tank, will be released in late January. Oregon-based economist William B. Conerly, in an early overview Tuesday morning in Phoenix, said:


• Arizonans took $60 million in fraudulent unemployment claims last year out of the $357 million paid. This is higher than the average 9 percent overpayment nationally, Conerly said, citing U.S. Labor Department research.

People continued receiving benefits after they got a job, or they duped the system altogether by receiving benefits even though they weren't eligible. Systems exist to track this type of fraud, but state officials would need money to better enforce them, Conerly said.


• President Bush's New Balance proposal would eliminate the federal unemployment-insurance tax on companies, giving states more decision-making authority over the money used to administer the program.


• Arizona could cut spending by implementing mandatory job-training programs. In other states, the time on unemployment drops when people are forced to attend regular meetings or job-search seminars lasting up to two days, he said

 
Governor says fort is well-positioned; Explains state's efforts to help save its bases

BY BILL HESS
Herald/Review

SIERRA VISTA -- Arizona's military installations are foremost critical to the nation's defense infrastructure and equally as important economic treasures for the state, Gov. Janet Napolitano said Wednesday.

As the Department of Defense wants more installations to be capable to do joint and combined training, Fort Huachuca is fortunately one place where it is being done and there can be expansion, she told more than 100 people who attended a community forum.

...

Tailoring her comments to Fort Huachuca, Napolitano said the Department of Defense will be making major changes that will impact the country for the next 25 years, and Arizona has to be ready to respond to them.

 
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