This article is bad journalism. I worked in that industry for about 10 years and the way this operates is the company lays off 100 workers and replaces them wit

This article is bad journalism. I worked in that industry for about 10 years and the way this operates is the company lays off 100 workers and replaces them with 120 contractors, 90 of which are offshore and only 30 are in the U.S. These 30 get, on average, about 60% of the wages (including benefits) that laid off FTEs used to get. However, the client company (e.g. Edison) pays the contracting company (e.g. Tata) roughly the same hourly rate for the on-shore guys. The major source of savings for Edison is moving the work offshore. The 90 folks in India cost about 20% of US FTE. This Google spreadsheet has the math: https://docs.google.com/spreadsheets/d/1g3upQ7KOlgo8sgKLf4Qdai1yP5fY5x0acTcaK9LgCcc/edit?usp=sharing https://docs.google.com/spreadsheets/d/1g3upQ7KOlgo8sgKLf4Qd...