While CEOs earn huge annual incomes, multinational software firm IBM is apparently outsourcing more IT employment with American employers to lower-paying India.
According to The Register, IBM has outsourced roughly 80 American developer positions to India. IBM has a long history of firing aging American workers and outsourcing their employment overseas or hiring foreigners on H-1B visas to take their place.
Tech salaries in India are considerably lower than in the US. For example, tech developers in the US get an annual salary of almost $109,000. The average pay for those similar occupations in India is roughly $38,000.
According to an insider who spoke to The Register, the majority of individuals who lost their jobs and haven’t been able to find another one at IBM are “all elderly, retirement-eligible employees.”
According to The Register:
“An IBM insider informed The Register that before this change, which is said to have occurred in the third quarter of 2022, AIX development was split about equally between the US and India. The entire gang has been relocated to India in preparation for 2023’s arrival.”
“Our source calculates that about 80 AIX developers in the US were impacted. According to information provided to us, they were “redeployed” and given an indefinite length of time to locate a new position inside IBM. This is consistent with procedures we previously reported on based on accusations made by other IBM workers.”
“The outsourcing strategy was implemented at the same time as IBM officials reached a settlement with former American workers who had sued the computer company for age discrimination. Those who were sacked claim they were let go and replaced by younger workers.”
IBM CEOs continue to earn large incomes despite having fired thousands of American workers and currently employing more people in India than in the United States.
In Fiscal Year 2021, Arvind Krishna, the CEO of IBM, received a salary of around $18 million. Similarly, CFO James Kavanaugh received more than $10 million, and general counsel Michelle Browdy got over $6.6 million.
After serving in the Trump admin., Gary Cohn is currently vice chairman at IBM and earned around $10 million in Fiscal Year 2021.
The IT company has strong political ties in Washington, DC.
More than $610,000 was donated by IBM executives to the Republican National Committee in 2022, as well as more than $21,000 to the National Republican Congressional Committee, close to $13,000 to the National Republican Senatorial Committee, close to $11,000 to Nikki Haley’s Stand for America PAC, and close to $10,000 to the Save America PAC of former President Trump.
Republicans Rep. Dan Crenshaw (R-TX), Sen. Marco Rubio (R-FL), Rep. Andrew Clyde (R-GA), and Sen. Ron Johnson (R-WI) are just a few who took contributions from IBM executives last year.