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US Senators Question Indian Firms Over H-1Bs

xzvf sends us a link to a BusinessWeek report on the campaign of two US senators to get answers to how H-1B work visas are actually being used. Yesterday Senators Chuck Grassley (R-IA) and Richard Durbin (D-IL) sent a letter (PDF) to nine Indian outsourcing firms that, among them, snapped up 30% of the H-1B visas issued last year. The senators want to know, among other things, whether the H-1B program is being used to enable the offshoring of American jobs. "Critics say outsourcing firms, including Infosys Technologies and Wipro, are using the visas to replace US employees with foreign workers, often cycling overseas staff through US training programs before sending them back into jobs at home."

5 of 415 comments (clear)

  1. The US is the big loser in this abuse by Opportunist · · Score: 4, Informative

    Aside of the abuse to create cheap offshoring opportunities that hurt both, the US population and the US taxes, this creates a problem: H1Bs ain't a goodwill thing of the US, "generously" granting people from other countries the opportunity to live in the US. H1Bs are first and foremost to enable companies to hire good, qualified people from abroad. No company would go through the hassle of an H1B app to get a new janitor. What they try to hire is simply someone with a qualification or experience that you can't find in the US, or at the very least, not in enough quantity.

    In other words, by leeching those H1Bs from the pool, those companies harm the US economy by creating a shortage of qualified workers. And I do see this as grounds for investigation and, if they're guilty of such a practice, applicable fines and punishments.

    --
    We used to have a Bill of Rights. Now, with the rights gone, all we have left is the bill.
  2. Re:Yes... by Anonymous Coward · · Score: 5, Informative

    ...and they are certainly not paid lower than their American counterparts.


    WRONG! Sorry to bust your bubble, but this has been studied. H1-B's average less than their American counter parts. You can't pull that one off here Buckwheat!

    Have you been through an MBA program lately? Well along with my 15 years of engineering experience and my BS EE and MS CS, I earned my MBA 3 years ago. We studied these sorts of things. The use of H-1B's and offshoring were stressed as a means to bring down laybor costs (not just in tech, but in health care, accounting, etc).

    And as a manager I can tell you that upper management EXPECTS us to lower costs using these "tools".
  3. happy this is happenning by thinkingpen · · Score: 5, Informative

    I worked at one of these firms in India before. The common practice there is to file for a H-1B visa in anticipation of future onsite trips. Many hundreds go unused. A number of my collegues got their visas stamped, but never travelled. Some were never intended to be used at all. The project manager told me they are just a backup in case of emergency situations (e.g., an onsite contractor might have to go back to India within short notice etc.) I think this is the main reason behind the recent inflation in number of H1-B applicants. This is certainly abuse of the H1-B program!

    These companies should not be granted so many visas. If you want to increase competitiveness grant more visas to foreign students from top universities in the US. Giving out visas to these companies will only get you mediocre people who know nothing about computer science (yeah well, they know a lot about time sheets, status reports and how not to manage a team) - ofcourse there will be exceptions, but the largely the crowd that comes here aren't any super skilled programmers. They would just know a bit of their client's business and a few programs in some subsystem that is written in COBOL.

    I am happy to have left that sweat shop in pursuit of my masters degree a couple of years ago. Never wanna go back to them! they do not do anything related to computer science there! it's all plain business. You are not allowed to fix ugly code if you feel like it - the client should be ready to pay for that too !! no smart ideas here please .. every solution to every possible problem is documented (hey we're a CMM level 5 company!) and no process that wassn't used before should ever be encouraged.

    Trust me, tis nothing like cutting edge. Far from it. I laugh when Bangalore is called the silicon valley of the East!

  4. Re:Yes... by penrodyn · · Score: 5, Informative

    I'm on a H1-B and I can guarantee that I am not paid less than my peers.

  5. Re:Yes... by Billly+Gates · · Score: 4, Informative

    Alot of newer MBAs do not consider I.T. workers capital.

    Instead they view IT workers as cost centers. Accountants write their salary in red as a loss since I.T. does not make anything and brings 0 value. But something like Sales can be written as capital as they can show they bring money in for example.

    Of course that is BS but alot of new MBA graduates whose professors spewed this crap when the .com boom collapsed, are now bringing this philosphy into practice. They view outsourcing as a way to slash red ink of the cost center in labor rather than selling capital. Wow, that sounds alot better to the CEO and CFO doesn't it?