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IBM has met their hiring goal for their Baton Rouge office; still expanding

Posted on 9/3/19 at 12:04 pm
Posted by member12
Bob's Country Bunker
Member since May 2008
33142 posts
Posted on 9/3/19 at 12:04 pm
Finally some good news for Louisiana.

quote:

LINK



With the equivalent of 811 full-time Baton Rouge workers tallied on June 30, IBM has met the terms of its revised, contractually obligated hiring quota with the state.

The news comes two years after IBM failed to create the 800 jobs it promised under a 2013 economic development deal with Louisiana, then prompting Gov. John Bel Edwards’ administration to revise its agreement with the tech giant. It’s viewed as a boon to the local economy by Mayor Sharon Weston Broome, the Baton Rouge Area Chamber and others, who all celebrated the announcement in separate prepared statements.

“We changed the way we did recruiting, especially with colleges and universities,” says Charles Masters, IBM vice president for North America client innovation centers. “But it’s also been about putting in more pathways and cultivating them.”


quote:

Still, more than 600 of the 811 workers—who have been counted toward the company’s jobs goal since the third quarter of 2014—are graduates of Louisiana universities, including 180 in the past year. However, specific data related to the number of graduates from each college—including LSU, Southern and BRCC in Baton Rouge—was unavailable before this afternoon’s deadline.

Also included in the count are the 30 apprentices IBM hired shortly before its June 30 deadline. The local apprentices—among 50 statewide—work for IBM full-time while also undergoing a 12- to 18-month training program, receiving salaries on par with those of other full-time workers that vary by job. Meanwhile, about half of the IBM employees are from Louisiana.


quote:

IBM is still hiring, says Masters, who expects to bring on between 30 and 50 new employees each quarter. He declined to say how many employees the center has today, deferring to Louisiana Economic Development, which did not respond to multiple requests for comment before deadline.


I would like to see the state go after service centers for more tech consulting companies (like they did with DXE). Maybe target Accenture, Deloitte Consulting, HP, etc. They all have "service centers" where they farm out some tech work for their larger domestic projects.
This post was edited on 9/3/19 at 12:12 pm
Posted by BeepNode
Lafayette
Member since Feb 2014
10005 posts
Posted on 9/3/19 at 12:19 pm to
quote:


I would like to see the state go after service centers for more tech consulting companies


I'm curious why it's the government's role to pay businesses to compete with local consulting companies?

Deloitte is big on H1b's, and it's especially fascinating to see the state pay IBM to bring jobs here while they pay Deloitte even more to farm them out.

Posted by dewster
Chicago
Member since Aug 2006
26608 posts
Posted on 9/3/19 at 12:23 pm to
quote:

I would like to see the state go after service centers for more tech consulting companies (like they did with DXE). Maybe target Accenture, Deloitte Consulting, HP, etc. They all have "service centers" where they farm out some tech work for their larger domestic projects


If Harrisburg can land one, I'm sure Baton Rouge or New Orleans could.
This post was edited on 9/3/19 at 12:26 pm
Posted by tiger perry
Member since Dec 2009
25668 posts
Posted on 9/3/19 at 12:29 pm to
That is good economic news
Posted by BurningHeart
Member since Jan 2017
10066 posts
Posted on 9/3/19 at 12:40 pm to
quote:

I'm curious why it's the government's role to pay businesses to compete with local consulting companies?


It's the way business is run, and we want our state governments getting creative (doesn't always have to be financial incentives) to improve the state's economy.

Unless every state government agreed to not recruit these companies, then there will always be someone out there willing to do a little more to incentivize them over.

Posted by upgrayedd
Lifting at Tobin's house
Member since Mar 2013
138918 posts
Posted on 9/3/19 at 12:42 pm to


What's the deal with this?
Posted by doubleb
Baton Rouge
Member since Aug 2006
42619 posts
Posted on 9/3/19 at 12:56 pm to
The rest of the story.

quote:

While IBM was yesterday trumpeting the fact it has exceeded its state contractual obligation to hire at least 800 workers at its Baton Rouge center, the tech firm will meet with Louisiana Economic Development in the coming days to determine how it will reimburse Louisiana $1.4 million for falling short on the average number of workers it employed in the most recent contract year.


BRBR

I see someone from IBM lurks.
This post was edited on 9/3/19 at 2:31 pm
Posted by BeepNode
Lafayette
Member since Feb 2014
10005 posts
Posted on 9/3/19 at 1:05 pm to
quote:



It's the way business is run, and we want our state governments getting creative (doesn't always have to be financial incentives) to improve the state's economy.



Do you consider it to be small government conservatism to take money from a local consulting firm and give it to an out of state consulting firm?
Posted by BurningHeart
Member since Jan 2017
10066 posts
Posted on 9/3/19 at 1:10 pm to
quote:


Do you consider it to be small government conservatism to take money from a local consulting firm and give it to an out of state consulting firm?


I don't play with abstract and subjective definitions. This is the free market at work.

If the state government did not actively recruit these companies, it could be considered subsidizing a local business just because it's local.

That leads to higher prices and less innovation because of less competition.

Competition is good.



ETA: It's the same concept as LSU recruiting players from across the country.

Should we not recruit out of state players and just be willing to accept whomever happens to decide they want to play for LSU?
This post was edited on 9/3/19 at 1:20 pm
Posted by N2cars
Member since Feb 2008
39631 posts
Posted on 9/3/19 at 1:11 pm to
Deloitte runs state government; that's a well known fact.
Posted by BeepNode
Lafayette
Member since Feb 2014
10005 posts
Posted on 9/3/19 at 1:19 pm to
quote:


This is the free market at work


LOL wow. So "free market" now means government taking money from one company and giving it to select competitors, and not making that same benefit available to everyone that meets the same arbitrary metrics.

What a time to be alive.
Posted by BurningHeart
Member since Jan 2017
10066 posts
Posted on 9/3/19 at 1:22 pm to
quote:

LOL wow. So "free market" now means government taking money from one company and giving it to select competitors, and not making that same benefit available to everyone that meets the same arbitrary metrics.


Yes, it does...

Why should we limit ourselves to what's already here?

More businesses to BR means more jobs, more competition, and in the end, the lower performing firms will go out of business while the better ones thrive.

This is the cornerstone to capitalism and what has made it successful since the beginning of history. This shouldn't be news to you...
Posted by N2cars
Member since Feb 2008
39631 posts
Posted on 9/3/19 at 1:23 pm to
Yall are arguing two different points.
Posted by BurningHeart
Member since Jan 2017
10066 posts
Posted on 9/3/19 at 1:27 pm to
I believe his point is that he wants the same incentives given to every consulting firm that meets a certain criteria.

Business isn't run that way. The reason some companies are so heavily recruited is the same reason certain players, or employees, are so actively recruited.

High performance puts you ahead of the pack. And if it's decided that one of these international firms nets good to the overall well-being of the state, then it's a net win and we should pursue it.

Posted by N2cars
Member since Feb 2008
39631 posts
Posted on 9/3/19 at 1:34 pm to
You are talking about net new jobs. State gives incentives for a new factory or plant, etc.

His concern is that the the State is rewarding IBM for underpaying consultants, thus eliminating private sector consulting jobs. In other words, using government money to compete against private enterprise.
Posted by member12
Bob's Country Bunker
Member since May 2008
33142 posts
Posted on 9/3/19 at 2:07 pm to
quote:

His concern is that the the State is rewarding IBM for underpaying consultants, thus eliminating private sector consulting jobs. In other words, using government money to compete against private enterprise.


Valid concern.
Posted by BeepNode
Lafayette
Member since Feb 2014
10005 posts
Posted on 9/3/19 at 2:08 pm to
Or if BurningHeart Consulting has to pay taxes that goes to subsidize ACME consulting, then has to compete with ACME for local contracts.

I'm not arguing for or against it here, but it's really strange that this is considered free market now.

I think when businesses look to Louisiana they love the handout but are worried about whose wheels they have to grease to keep it going.

It's perplexing that conservatives would continue to support this spoils system type approach that puts individual economic development activities at the whims and discretion of political appointees.
Posted by member12
Bob's Country Bunker
Member since May 2008
33142 posts
Posted on 9/3/19 at 2:09 pm to
quote:

It's perplexing that conservatives would continue to support this spoils system type approach that puts individual economic development activities at the whims and discretion of political appointees.


I think most "republicans" support overhauling Louisiana's craptastic tax policy.

That's politically impossible, so we have to do this bullshite to attract business to the state.
Posted by N2cars
Member since Feb 2008
39631 posts
Posted on 9/3/19 at 2:18 pm to
quote:

Or if BurningHeart Consulting has to pay taxes that goes to subsidize ACME consulting, then has to compete with ACME for local contracts.



Just get the RFP written so that you're the only one that can win it.

Put language in there that explicitly favors your company, and only your company. That way, you'll win and it can withstand any protests.

Easy peasy.
Posted by N2cars
Member since Feb 2008
39631 posts
Posted on 9/3/19 at 2:26 pm to
quote:

It's perplexing that conservatives would continue to support this spoils system type approach that puts individual economic development activities at the whims and discretion of political appointees.


BTW, I'm confused as to why you say this. The system you refer to is quite honesty deeply embedded on both sides of the aisle, and not just in Louisiana.

What makes Louisiana unique, is that unlike Texas, Florida, Alabama, and even Mississippi, is how they don't protect their own instate based companies.
Our politicians and state administrators will hit those knees in a heartbeat for contributions and favors, no matter where you're based. Other states take your money, but award to the local companies.

Anyone here that has sold in the Southeast to state governments will validate what I've said.
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