McCormick Instructed Companies on Shipping American Jobs Overseas 

PENNSYLVANIANew reporting from Heartland Signal exposes the latest in Connecticut hedge fund executive David McCormick’s history of outsourcing. The report reveals McCormick coached other companies on how to ship American jobs overseas, including “a guide for ‘Low-Cost Country Sourcing’” developed by his company.

Read the full story here and see below for highlights:

  • “From 2001 to 2004, McCormick was the chief executive officer of a global software company called FreeMarkets. The company described its operations as a resource to help other businesses “lower costs, reduce risks and increase profitability.” 
  • When FreeMarkets was purchased by Ariba in 2004, McCormick stayed and became the president of Ariba while FreeMarkets’ many services carried over, which included “procurement outsourcing.”
  • In 2003, Ariba released a guide for “Low-Cost Country Sourcing,” which lays out strategies for businesses to cut costs and save money via shipping jobs overseas. The company also had a specific page on their website that outlined its strategy for “low-cost country sourcing.” One of these “low-cost countries” was India, which McCormick called an important location for country sourcing.
  • “Big multinational companies are interested in doing business in India and, being in the business of spend management, we help them to work out what they buy and who they buy from,” McCormick said in a 2004 interview. “Services like the low-cost country sourcing programme [sic] are a key differentiator for Ariba, as they enable it to offer complete spend management solutions to customers.”