Report: Politically-Connected IBM Outsources More U.S. Tech Jobs to India

BARCELONA, SPAIN - MARCH 02: View of the IBM booth on day 3 of the GSMA Mobile World Congr
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Multinational tech corporation IBM is reportedly outsourcing more United States-based tech jobs to lower-wage India as executives rake in enormous annual salaries.

IBM, with a long history of laying off older American employees to either outsource their jobs to a foreign country or replace them with foreign H-1B visa workers, has sent about 80 American developer jobs to India, according to The Register.

In India, tech wages are significantly lower than in the U.S. For instance, tech developers in the U.S. earn, on average, more than $109,000. Meanwhile, those same positions in India go for an average salary of about $38,000.

Most of those who saw their jobs sent to India and who have not found another job within IBM are “all older, retirement-eligible employees,” an insider tells The Register.

The Register reports:

Prior to this transition, said to taken place in the third quarter of 2022, AIX development was split more or less evenly between the US and India, an IBM source told The Register. With the arrival of 2023, the entire group had been moved to India. [Emphasis added]

Roughly 80 US-based AIX developers were affected, our source estimates. We’re told they were “redeployed,” and given an indeterminate amount of time to find a new position internally, in keeping with practices we reported last week based on claims by other IBM employees. [Emphasis added]

The outsourcing scheme comes as IBM executives settled with former American employees who sued the tech corporation, alleging age discrimination. According to those fired, they were let go and replaced with younger employees.

Despite laying off thousands of American workers, and now having more employees on the payroll in India  than the U.S., IBM executives continue raking in enormous salaries.

IBM CEO Arvind Krishna, in Fiscal Year 2021, enjoyed a nearly $18 million salary. Likewise, General Counsel Michelle Browdy took in more than $6.6 million while CFO James Kavanaugh earned more than $10 million.

Gary Cohn, now vice chairman at IBM after serving in the Trump administration, raked in nearly $10 million in Fiscal Year 2021.

The tech corporation has vast political connections in Washington, DC.

In 2022, IBM executives gave more than $610,000 to the Republican National Committee, more than $21,000 to the National Republican Congressional Committee, nearly $13,000 to the National Republican Senatorial Committee, almost $11,000 to Nikki Haley’s Stand for America PAC, and nearly $10,000 to former President Trump’s Save America PAC.

Other Republicans who accepted donations from IBM executives last year include Rep. Dan Crenshaw (R-TX), Sen. Marco Rubio (R-FL), Rep. Andrew Clyde (R-GA), and Sen. Ron Johnson (R-WI), among others.

John Binder is a reporter for Breitbart News. Email him at jbinder@breitbart.com. Follow him on Twitter here.

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