The latest Democrat to enter the 2020 presidential race has quietly exited the governing board of the job-outsourcing firm, Bain Capital.
Deval Patrick is a former governor of Massachusetts and is a close ally of former President Barack Obama. He joined Bain Capital’s board in 2015, but the company’s website has removed a page showing his role at the company.
However, the page is still displayed on search engines:
An old press release at the Bain Capital website says:
BOSTON – April 14, 2015 – Bain Capital, a leading global private investment firm, today announced that former Massachusetts Governor Deval L. Patrick will join the firm to found a new business that will focus on delivering attractive financial returns by investing in projects with significant, measurable social impact. Patrick will lead the new business and serve as a Managing Director of Bain Capital. He officially joins the firm today.
Bain Capital makes money by exporting U.S. jobs to cheap labor counties, such as China. But it also earns revenue by importing cheap labor to take jobs from Americans.
For example, Bain Capital reportedly owns 13 percent of a Genpact, a U.S. firm that imports Indians workers into Americans’ jobs.
Genpact was spun-off from General Electric to create stock market value for investors by delivering Indian workers to many companies in the United States. The transfer of Indian workers is made possible by the federal visa programs, such as the H-1B and L-1 programs.
In 2018, the company asked the government for 271 H-1Bs. In 2017, it asked for 410 H-1Bs, and in 2016 it asked 307 H-1Bs. In 2018, Genpact also got 160 L-1 visas, which allow Indian employees in India to transfer to the United States to work for Indian-level wages. Genpact is prospering on the U.S. side of the vast and growing U.S.-India Outsourcing Economy, which is now worth roughly tens of billions per year.
This August, Genpact won a contract from Walmart to provide foreign workers to replace 569 Americans in Walmart’s finance and accounting department.
Many of the Walmart jobs may be moved to Central America, according to a company statement. Genpact “will open a new finance and accounting (F&A) delivery center in Heredia, Costa Rica, and a digital innovation hub in Guadalajara, Mexico focused on advanced analytics, as a result of its expanded partnership with Walmart.”
NASDAQ.com says that institutions own 96 percent of Genpact. Ownership is split among 182 million shares in the firm. Bain Capital is the biggest stakeholder in Genpact, with 23.5 million shares in the company, worth roughly $934 million.
Genpact’s $3.3 billion in revenue is enough to generate $7.5 billion in stock value for its many investors, which also includes Blackrock and Charles SchwabInvestment Management.
Throughout the 2012 election, Democrats blasted the GOP candidate, former Gov. Mitt Romney, for his leading role in Bain Capital. Fox News reported President Barack Obama’s 2012 criticism:
“When you’re president, as opposed to the head of a private equity firm, your job is not simply to maximize profits. Your job is to figure out how everybody in the country has a fair shot.”
Bain and Genpact now stand to gain from a group of GOP Senators which is trying to boost the U.S.-India outsourcing economy.
The Senators’ bill offers citizenship to additional Indians who take U.S. jobs from American graduates. The S.386 bill is being pushed by Utah GOP Senator Mike Lee. His allies include North Dakota GOP Sen. Kevin Cramer and North Carolina GOP Sen. Thom Tillis.
The S.386 bill is also backed by many Democrats, including California Sen. Kamala Harris.