The New IBM — vampires in our midst

Ginni_RomettyA memo went out this week to managers in IBM’s U.S. Integrated Technology Services division requiring that future use of additional sub-contract (1099) workers must be approved in advance by a director or vice president. This includes coverage for sick days and vacations, not to mention inevitable customer emergencies. The memo further required that the renewal of any ongoing 1099 contracts include an across-the-board 10 percent reduction in labor rates to IBM. While this may not sound like news, inside ITS it has great meaning since the company has already been cut to the bone. There are, for example, reportedly two remaining IBM experts on HP-UX, HP’s version of Unix. Yet IBM supports customer running […]

So that’s how H-1B visa fraud is done!

Screen Shot 2013-07-18 at 12.37.22 AMReader Mark Surich was looking for a lawyer with Croatian connections to help with a family matter back in the old country. He Googled some candidate lawyers and in one search came up with this federal indictment. It makes very interesting reading and shows one way H-1B visa fraud can be conducted.

The lawyer under indictment is Marijan Cvjeticanin. Please understand that this is just an indictment, not a conviction. I’m not saying this guy is guilty of anything. My point here is to describe the crime of which he is accused, which I find very interesting. He could be innocent for all I know, but the crime, itself, is […]

Where have you gone, Engine Charlie?


first-corvette-1953Charles Erwin Wilson, known as “Engine Charlie,” was president of General Motors and later Secretary of Defense under President Dwight Eisenhower. He is broadly — and incorrectly — quoted as having said during his Senate confirmation hearing “what’s good for General Motors is good for America.” His actual quote is more nuanced: “For years I thought what was good for our country was good for General Motors and vice versa.”

This is a fascinating bit of history because we aren’t talking about today’s General Motors or even today’s United States of America but the GM and the USA of 1953 — a time when both were leading the world. Yet look at the equivocation in […]

The Exit Trap

exitI was with a friend recently who has a pretty exciting Internet startup company. He has raised some money and might raise more, his product is in beta and it’s good. It solves a difficult technical problem many companies are struggling with. We argued a little over the name of the product. Of course I thought my suggested name was better or certainly cleverer, but then he said, “It doesn’t matter because we’ll probably sell the company before the product ever ships. It may never appear at all.”

His company will exit almost before it enters. This is happening a lot lately and we generally think it is a good thing but it’s not.

If, like me, […]

Two H-1B’s walk into a bar: more on the visa scam

$10000There’s an old joke in which a man asks a woman if she’ll spend the night with him for $1 million? She will. Then he asks if she’ll spend the night with him for $10?

“Do you think I’m a prostitute?” she asks.

“We’ve already established that,” he replied. “This is just a price negotiation.”

Not a great joke, but it came to mind recently when a reader pointed me to a panel discussion last September at the Brookings Institution ironically about STEM education and the shortage of qualified IT workers. Watch the video if you can, especially the part where Microsoft general counsel Brad Smith offers to pay the government $10,000 each for up to […]