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FWD.us Wants More H-1B Visas, But 50% Go To Offshore Firms

theodp writes: "On the day the U.S. began accepting H-1B visa applications for FY2015, Mark Zuckerberg's FWD.us PAC stepped up its lobbying efforts for more tech visas even as ComputerWorld reported that the major share of H-1B visas go to offshore outsourcing firms that use visa holders to displace U.S. workers. 'The two largest H-1B users,' notes ComputerWorld, 'are Indian-based, Infosys, with 6,298 visas, and Tata Consultancy Services (TCS), with 6,258.' ComputerWorld adds that food and agricultural company Cargill is outsourcing IT jobs to TCS, including 300 in Minnesota, the home of Sen. Amy Klobuchar, sponsor of the I-Squared Act of 2013, which would allow H-1B visa caps to rise to 300,000 annually."

32 of 325 comments (clear)

  1. Because by MrKaos · · Score: 4, Insightful

    Management still doesn't understand why you pay for talent.

    --
    My ism, it's full of beliefs.
    1. Re:Because by Thanshin · · Score: 4, Funny

      Wrong. When it applies to executive remuneration they REALLY don't understand why you pay for talent.

      Otherwise, the problem would eventually solve itself.

    2. Re:Because by ebno-10db · · Score: 5, Interesting

      They can start with the CEO's, who are the most globally uncompetitive. Typical American CEO of a large company makes about 400x the average compensation of employees. In the UK it's 45x, and in the rest of the developed world is 10x-20x. Forget about India - just go to Canada and get a CEO for about 5% the cost of a US one. Similar culture, short travel, little time zone difference ... what's not to like?

    3. Re:Because by jlowery · · Score: 4, Insightful

      "I'm not fox news but you can believe me. If you work hard and create value, you can make a lot of money"

      Scientists work hard and create a lot of value and generally do not make a lot of money.

      Many good teachers work hard and create a lot of value, but do not make a lot of money.

      Many engineers work hard and create a lot of value, but do not make a lot of money.

      Many paramedics work hard and create a lot of value, but do not make a lot of money

      Many truck drivers work hard and create a lot of value, but do not make a lot of money

      Many people who put family ahead of working hard create value and do not make a lot of money.

      If you think a person's value to society is directly tied to the amount of money they make, then you need to go soak your head.

      --
      If you post it, they will read.
  2. Isn't the upshot the same? by harryjohnston · · Score: 3, Interesting

    I'm not at all sure I understand the purpose of tech visas, but if the problem they're supposed to solve is that there aren't enough tech workers to fill the available jobs, then surely the upshot is the same either way? The visas issued to Infosys may be used to displace existing US tech workers, but those displaced workers are then available for Facebook to hire.

    1. Re:Isn't the upshot the same? by Sockatume · · Score: 4, Insightful

      There are plenty of STEM workers to fill the available jobs; I think the last figures put a 2:1 or 3:1 ratio of workers to roles. There just aren't enough available at the prices these companies want to pay. Hence offshoring: find a cheaper supply of labour elsewhere.

      --
      No kidding!!! What do you say at this point?
    2. Re:Isn't the upshot the same? by The+Mayor · · Score: 5, Insightful

      This is exactly correct. Plus, H1B visa holders are tied to the company that issues the visa. If they leave the company, they must return to their home country. Tech companies like Facebook like to have such indentured servants.

      H1B visas serve only to drive down wages for US employees. Additionally, they end up training foreign talent that are later kicked out of the country (after 3 or 6 years, depending upon whether the visa is renewed). They don't help the nation's interests, nor the public's interest. They serve only to increase the profit margins of the large firms.

      Get rid of the H1B, and increase the green card slots available to foreign workers, especially the Indians. I've very pro-immigrant, but the H1B visa only provides for indentured servitude.

      --
      --Be human.
    3. Re:Isn't the upshot the same? by L4t3r4lu5 · · Score: 4, Insightful

      The people that make the decisions don't care what happens in 10 - 20 years; They'll be retired at 50 with £X,000,000 in the bank and a new Ferrari every three months.

      --
      Finally had enough. Come see us over at https://soylentnews.org/
    4. Re:Isn't the upshot the same? by TheRaven64 · · Score: 4, Insightful

      How do H1B visas drive down wages when it's vastly more expensive to hire an H1B than to hire a local? That's the part of the anti-H1B thing I just don't get.

      There are some significant costs associated with hiring, however once they're hired you only have to pay them the prevailing wage for the industry. This sounds good, but 'the industry' can be interpreted very broadly, so when you're hiring someone to do realtime C programming they count as being in the same industry as a guy who dropped out of high school and writes PHP. They're also in a very weak position when it comes to bargaining, because if they lose their job they have a very short time to find another sponsor for their visa before they are deported.

      If you want to avoid this, the solution is to offer a full work permit to anyone who has skills in one of the shortage industries, so they can go to the US and work at the real (i.e. defined by the market, not defined by some fixed spreadsheet) prevailing wage. Immigrants don't depress wages when they expect the same standard of living and have the same bargaining power as their native colleagues.

      --
      I am TheRaven on Soylent News
    5. Re:Isn't the upshot the same? by Curunir_wolf · · Score: 3, Insightful

      How do H1B visas drive down wages when it's vastly more expensive to hire an H1B than to hire a local?

      It's not - how on earth did you get that idea? The rules say it's supposed to cost the same, but in practice the H1B worker is much cheaper for the vast majority of companies that use them.

      --
      "Somebody has to do something. It's just incredibly pathetic it has to be us."
      --- Jerry Garcia
    6. Re:Isn't the upshot the same? by ebno-10db · · Score: 3, Insightful

      The visas issued to Infosys may be used to displace existing US tech workers, but those displaced workers are then available for Facebook to hire.

      No, because Infosys uses the H-1B's not just to replace American workers, but to facilitate offshoring. The H-1B's already know how the company works in India, fewer problems from language and cultural differences, etc. Most importantly, the Infosys H-1B's know that if they do a good job on their tour of duty here, they'll be rewarded when they return to India. The Indian Commerce Minister has publicly called the H-1B the "outsourcing visa".

    7. Re:Isn't the upshot the same? by Anonymous Coward · · Score: 5, Interesting

      Suppose you have a guy leading your Java dev team under the title "Java lead engineer". He is paid $100k pa. You want to cut this cost.

      Here's how H1B's work: You decide there is a new role, "Key Java developer", you declare this has all the same skills but it's a "new" role. You declare that people doing this role (which you just invented) get paid $60k pa. Weirdly, no-one applies for a $100k pa job that only pays $60k pa. Damn, there is now a "skills shortage". The imaginary "skills shortage" means you can hire under H1B and pay $60k as you wished. An immigrant is glad to be paid $60k to do the job, and their visa is now legally under your control, so if they displease you then they aren't merely fired, they are thrown out of the country.

      And that's how you replace a $100k pa salaried citizen with a $60k pa indentured servant.

      At its best it's a nasty cynical way to hold down wage costs. At it's worst it's basically a milder modern day slavery.

  3. If you're going to screw... by Rick+in+China · · Score: 4, Interesting

    The American workers out of jobs, at least support American companies in the process, no? I'm not even American, I'm Canadian, so while I don't have a vested interest, I can see and understand the hate. Essentially it makes sense to bring in tech talent with the purpose of filling vacancies that can not otherwise be filled with the domestic talent. It isn't being used for that in many cases, though - rather is used to cut cost and 'get 'er done'. If the gov't is going to enable this cost-cutting advantage, it should make sense to at least offer it to American companies rather than foreign - why would they want to both displace more expensive workers as well as displace them with the intention of supporting a foreign enterprise in the process?

    1. Re:If you're going to screw... by DarkOx · · Score: 4, Insightful

      If you are tiny country or have small population yes it makes sense to bring in talent. When you are the 21st century USA with a plenty big population to fill most roles and a University system that is still considered among the worlds best, no I don't think it makes much sense at all.

      How do reconcile a pro-education social policy with labor and economic policies that are opposed to developing your own talent?

      The idea the USA *needs* to import tech workers is pure farce. If anything USA needs to put much tighter controls around the use of foreign labor. We should treat labor like any other import, wages paid to foreign workers ought to be taxed heavily. So if a company really really does *need* to bring someone in they *can* but would be heavily discouraged from doing so in other cases. There should be payroll taxes on foreign workers working for US companies in foreign countries as well, although these should be a much lower rate.

      Real Immigration on the other hand isn't a problem. If people want to come here, have families here, live here as residents and be citizens; great! Then they are our people, attracting good talent is an investment in our own country.

      Its pretty rare that I advocate taxing anything, but imports are an exception, I think we should go back to funding the operation of government primarily through import tariffs and foreign labor should no exception.

      --
      Repeal the 17th Amendment TODAY! Also Please Read http://www.gnu.org/philosophy/right-to-read.html
    2. Re:If you're going to screw... by dbIII · · Score: 4, Informative

      It isn't being used for that in many cases, though

      Australia adopted the idea as well, just like many other stupid ideas from the USA and not many good ones. Initially is was to fill the shortfall of doctors after we'd cut the numbers of doctors we were training (a lobby group thought scarcity would be a good way to drive up doctors incomes). Now it's even being used to employ cleaners as "skilled workers" that are supposed to be unavailable in the country. The reality is that mining companies and similar are just importing cheaper employees via such a rort whether there are people available to do the job or not. There are certainly large numbers of unemployed people who could do such a job in the areas where cleaners and other nonskilled or semi-skilled staff are employed on indentured servitude visas.

    3. Re:If you're going to screw... by dbIII · · Score: 3, Insightful

      primarily through import tariffs

      The unintended consequences of such a thing on Sugar and Steel completely fucked up both industries, manufacturing, and the health of your countries children. It's an axe to be wielded with care. Overprotection of an industry can lead to putting it on permanent life support, a slow decline, and malign effects on industries that depend upon them.
      In case you haven't heard of these examples before, manufacturing moved to where steel was cheaper and expensive corn syrup ended up being cheaper that cane sugar.
      There's other things that can go wrong with your suggested approach. Byzantium gave it a try up until 1204AD.

  4. Ya know ... by cascadingstylesheet · · Score: 3, Insightful

    ... Klobuchar is a Democrat. And these tech CEOs are noted "progressives".

    It seems that they think that paying low wages is a great idea ... for them.

    Other businesses, mind you, we have to mandate that they pay their employees more. And claim that this will have no effect on the bottom line.

  5. Simple solution by Ecuador · · Score: 4, Insightful

    Instead of increasing H1b's which are abused by offshore firms, make a new category for foreigners who hold a graduate degree from a top US school. The US has by far the best Universities in most areas, but the best foreign students often leave the US because of the very restrictive H1b Visa system (employment-tied, application only on April for October start, dependents not eligible for work etc). Why provide world-leading education and then let the best talent go?

    --
    Violence is the last refuge of the incompetent. Polar Scope Align for iOS
  6. Re:Very bad... by harryjohnston · · Score: 3, Informative

    Have you seen http://www.h1bwage.com/ ?

  7. As someone who was on H1-B, it's a scam by dwillyson · · Score: 5, Interesting

    As someone who worked on an H1-B visa about 10 years back in Silicon Valley, i can confirm that these visas are being misused by IT consulting companies. They take the majority of these visas and then use them as baits in india for IT professionals. Most indian IT companies are nothing but cheap labour shops. If there is a dearth of IT professionals, make H1-B non-employer specific. All it does is make you a bonded labourer for 4-6 years with your employer who promises to process your green card while paying you a low salary. This is a big scam and i hope enough people take notice so that something is done about it. Most people on H1-B won't speak about it cause they don't want to go back home or lose their job. This is what keeps it going.

    1. Re:As someone who was on H1-B, it's a scam by sBox · · Score: 3, Informative

      I am a US citizen (and native) who was employed by Tata for a F500 company (call them BigCo.) I had been with BigCo on a temporary project with another staffing group and BigCo's managers forced Tata to find and hire me for a basic support contract while BigCo's long time employees were slowly laid off. Two of us were citizens of the US on this contract, brought in by management, everyone else was either H1B or offshore. I can assure you that Tata let my contract expire and replaced me with an H1B worker already on their payroll who made significantly less all the while Tata charged BigCo the same rate. The mandatory HR training calls were hilarious. I've been outsourced, been an outsourcer, and an outsourced outsourcer. The H1B system totally abused in a way that non-foreign staffing companies only wished they could do.

  8. Prove its about talent by QuantumRiff · · Score: 3, Interesting

    If the claim is that there is a shortage of talent, then simply add a fee to the process, that is roughly equivalent to a years worth of college education in the state where the job is located, for every year the H1B worker works, into a scholarship program for that industry/disipline. Facebook should jump at the chance to make college more affordable for CS majors, since they seem to need so many of them. And hey, if the student can graduate without "mortgage level" loans, they can actually afford to work for less money.

    --

    What are we going to do tonight Brain?
  9. You've got it all wrong. by Required+Snark · · Score: 3, Interesting
    This isn't selling out resident workers, both green card holders and citizens. It's capitalism in action.

    The US government is for sale, and the highest bidders get what they pay for. You buy enough legislation (and legislators) and you can make anything legal.

    Want to make more money in the short run by gutting STEM employment and destroying US based intellectual capitial? No problem! (Just look at IBM).

    Want to pay no US taxes while you plaster US flags on your equipment? You don't even have to make the flags in the US! (Caterpillar, a proud US giant.)

    It really is equal opportunity at work. You don't even have to be a US company to buy what you want.

    Stop whining, it's unpatriotic. You obviously don't love the US if you can't afford to buy you own slice of the American Dream. Tata Consultancy Services is clearly a much more important American Enterprise then any of the mere citizens who do useless things like live, vote and pay taxes in the US.

    It's not like there is a "Government of the People, by the People and For the People" or any other nonsense like that.

    --
    Why is Snark Required?
  10. Re:Very bad... by Curunir_wolf · · Score: 4, Interesting

    Have you seen http://www.h1bwage.com/ ?

    According to the site - "h1bwage.com is the online wage library for h1b prevailing wage determinations, and the disclosure databases for other programs."

    So it's referencing the standard salaries for positions, and/or the H1B application statements of companies applying for the visas. It in no way reflects what the hired workers actually earn, and is not intended to. Salaries are always "negotiable".

    I suspect that some of those figures are what the consulting firm is charging to place one of those working in another company - so the company is paying that amount for the person, but the consulting firm is taking a good portion of it off the top before they actually pay the worker.

    --
    "Somebody has to do something. It's just incredibly pathetic it has to be us."
    --- Jerry Garcia
  11. Re:I don't *want* US workers by Curunir_wolf · · Score: 4, Interesting

    I donate a LOT of money to FWD.us to try to get the H1-B limits increased. Why? Because while my company does do business in the US, I despise US workers - who are generally a bunch of self-important, entitled brats who think they are God's gift to development. The worst part? They are simply lazy. My God are Americans lazy. Show up at 8:45... leave at 4:15... hour and half lunch.. sitting around surfing the Internet all day while finding a few minutes here and there to do some work in between facebook posts.

    And yet their output is still just as high in quantity and orders of magnitude higher in quality than anything that comes out of your 14-hour-day Bangalore sweatshop. I have to use 5 of those guys to do the work of 1 American developer, and it's still not a deal, because it has to be sent back 5 or 6 times for fixes just to reach the level of "barely acceptable".

    You're still doing business in the US because there are still idiots that thing they're getting a deal. Boeing sure learned their lesson after their Dreamliner got grounded when the steaming pile of crap that HCL delivered was so bad they had to hire a whole new set of American developers to fix it. And yet, incredibly, after multiple failed projects like that which required total re-write to fix, HCL is somehow still getting work.

    --
    "Somebody has to do something. It's just incredibly pathetic it has to be us."
    --- Jerry Garcia
  12. It's going to get much worse by walterbyrd · · Score: 4, Insightful

    There are still good jobs for American tech workers, in America.

    Just wait until we hit the next economic bump.

    When wages really get depressed, Americans will stop studying for tech. Then US employers will point to the declining enrollment and scream that Americans are too stupid, and lazy, to study tech subject. The only answer will be to import more visa workers.

    The more visa workers the US lets in, the more US workers will feel out of place in their own work environments. Then it will get easier to offshore tech jobs for even bigger savings. Then, due to technology transfer, foreign companies will take over - this is already happening in China.

    If you think things are bad now, just wait for about ten years.
     

  13. Bullshit by Anonymous Coward · · Score: 4, Insightful

    A good amount of management salary is based on performence/ percentage of profits and stock options

    That has been blatently untrue for years as boards practice "repricing" and back-dating of these ostensible stock options http://www.nysscpa.org/cpajournal/2007/1007/perspectives/p6.htm

    Those practices of making stock options into can't-lose forms of compensation haved moved them squarely out of the category of "pay for performance".

  14. Re:Most "executives" are morons by WindBourne · · Score: 4, Insightful

    However, he is correct that the system is fucked up. We desperately need to change our immigration laws back to allowing only talented ppl (i.e. skills that we need), their immediate family (spouse and kids), and kill off the H1-Bs.

    --
    I prefer the "u" in honour as it seems to be missing these days.
  15. Replace Congress with H-1Bs by kcdoodle · · Score: 4, Insightful

    Lets issue another 535 H-1B visas, take the first 535 people off of the streets in New Delhi and replace congress with them.

    I bet they would come to every session, special investigation, ad-hoc committee and all have perfect attendance. They would probably do a MUCH BETTER job, since there would be little in-fighting, and they would not be indebted to some controlling political group.

    Just a thought...

    --

    - I live the greatest adventure anyone could possibly desire. - Tosk the Hunted
  16. meanwhile... by tatman · · Score: 3, Insightful

    Americans looking for work remain unemployed.

    --
    I've always said English was my second language. Had Romeo and Juliet been written in C, I might have understood it.
  17. Re:Most "executives" are morons by tompaulco · · Score: 4, Insightful

    Ah, a political bigot. Thanks for putting that up front and saving me the effort of reading any more. Next you'll be telling us how Obama caused your erectile dysfunction.

    Which is a shame, because his post was spot on. We used to import the best and brightest, and now we import whoever has a pulse and is willing to do the job for 20% less money.
    The people that we used to import had PhDs, and had knowledge that was rare in the workforce. Now, we import people who do grunt work for which any number of unemployed Americans have the skill and knowledge to do.

    --
    If you are not allowed to question your government then the government has answered your question.
  18. Re:There are already plenty of US STEM workers by RogueWarrior65 · · Score: 3, Interesting

    So then why does Zuckerberg desperately want to hire foreign workers? If he really needs workers and can't find the skills he needs with US workers, then they aren't being trained in currently marketable skills (I believe that based on personal experience) and he should fund training for the skills he needs which would take less money and time than a four-year college program. If he needs workers but doesn't want to pay what Americans are willing to work for then he's no different than every other company that outsources to China or wherever and any claims of altruism are total B.S.