No visa for firms hiring less than 50 percent Americans

No visa for firms hiring less than 50 percent Americans

By SiliconIndia   |   Monday, 30 August 2010, 03:16 Hrs   |    31 Comments
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No visa for firms hiring less than 50 percent Americans
Bangalore: After Washington's decision to double the visa application fees as a part of its border security law, another bill has been proposed to axe visas (whether H1-B or L1) to foreign companies that do not employ at least 50 percent local people in the U.S.

The Comprehensive Immigration Reforms Bill, which aims to curb illegal immigrants to the U.S. from Mexico, is likely to hit the Indian IT outsourcing industry in November, with potentially disastrous consequences.

If the bill is passed, it is expected to affect the Indian IT outsourcing sector, which is nowhere near this 50 percent figure and still relies on H1-B and L1 visas to transition clients' contracts offshore.

"Most politicians are trying to capitalize on the issue on the back of rising unemployment and a lot of negative sentiment floating around that," said a senior executive of one top Indian IT outsourcing firm. He did not wish to be named, as his company has significant business interests in the U.S.

Indian IT service companies depend heavily on H-1 and L-1 visas to send engineers from India on a temporary basis to transition clients' work to India: gathering client business requirements, getting the design ready; and sometimes to support a client's IT infrastructure maintenance works onsite.

Most companies also send Indians for various front-end roles like account management, relationship management and sales and support. Besides, most IT employees in India consider onsite (U.S.) postings a prime motivation factor to further their career growth. If that disappears, most companies will find it difficult to get talent.

Nasscom, the apex industry body representing the software services industry in India, has been asking U.S. authorities and lawmakers to introduce temporary service visas or work permits similar to those of the UK, Germany and France. It made this clear in 2009 when senators Chuck Grassley and Dick Durbin were planning to introduce the Visa Reforms Bill in the U.S. Senate.

A major part of the Durbin-Grassely proposals are now believed to have been incorporated in the Comprehensive Immigration Reforms Bill. Nasscom is awaiting an official draft of the Bill before renewing its campaign against the move.

According to Nasscom President Som Mittal, there is no official draft available at the moment, which is why there are many versions floating around. There are discussions between the U.S. administration and Congress on a 10-point agenda on the shape of the Bill.

Industry insiders say the recent spurt in anti-outsourcing initiatives in the U.S. are due to political reasons. The U.S. economy is also passing through a rough patch, with talk of double-dip recession growing louder with each passing day. Unemployment rates are high and private indebtedness is very high.

Because of growing fiscal deficit, most new U.S. government programmes are self-funded, otherwise it would be difficult to get Congressional approval.

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Posted by:valeepherge - 16 Aug, 2011
6: This is plain and sheer hypocrisy and double standard.
Nothing else.
Posted by:Madhumita R - 06 Sep, 2010
7: Hey,i accept,there is a bit of discrimination in indaian companies regarding job,even i faced this but the fact is here manpower is more so they don't compromise much.
But look at the other side is it the indian companies only getting benefit from outsourcing,its the clients of US who get benefit too and moreover by doing outsourcing now we all have become global.I am sure discrimination can't make profits its the talent that will be the ultimate winner.
US Govt should not think by neglecting others it can grow,because to grow means one have to be globalised.And this a high time to analyze the real consequences before coming to any conclusion.
Posted by:indian - 30 Aug, 2010
8: Oh Sure! Being Indian, after being refused jobs by our own Indian brothern, I feel a lot and I support what US Govt. is doing for Indian companies not hiring Americans. These Indian companies 'play' with the candidates by conducting interviews (one on phone, one/2 on 'white board' style asking the candidates to write the code on the board) irrespective of the candidates MS in CS, work experience and/or Certifications and/or age. These discriminating Indian recruiting companies deserve this kind of treatment by US Govt.

Indain American
Posted by:Bruce Bond - 30 Aug, 2010
Mr. Indian American,
Can you highlight when you were refused a job in India?
Why not this bill was proposed at that time?
When US Govt is not able to combat the recession effects, that time only they are realizing these discrepancies in Indian firms. Why dont they throw you out of their country, in that case?
Till 2 yrs back they were singing the rhymes of Free Trade Policy, what happened to it now?
Do you have any answers for any of these questions?
Gagan Replied to: Bruce Bond - 31 Aug, 2010
10: To USAcitizen: You may be proud of your citizenship here. But I can tell you time is not so far when USA CITIZENS will be standing in queue to get visa for Asian Countries. Direction for US is only one way, that is southward... Real issues are conveniently ignored, this is just one more clue to understand that. More protectionism they follow, more they will go down. Currency of highly protectionist country don't deserve to be worldwide acceptable currency, and moment world economy start implementing these, you will hear death bell Mr. USACitizen.... sharpen your skillsets & get ready to stand in queues in Asia.
Posted by:GSP101 - 30 Aug, 2010
I am a INdian and live in the US. You can dream about this but only dream. Our Indian companies are cheap out soruceing destination where there no innovation. YOU ARE DREAMING A DREAM
IndianAmerican Replied to: GSP101 - 04 Sep, 2010
12: India has reservations on all things from education to employment and what so ever. Come on guys ! this is not something new to you , stop complaining and play by the rules.
Posted by:USAcitizen - 30 Aug, 2010
Agree one hundred percent
Mansoor Replied to: USAcitizen - 30 Aug, 2010
USA have own rules, and they don't care any countries peoples. Actually they afraid from India, China etc. because we are moving on top, last year Obama already said that, we are moving down, because Indians, Chiness are moving on top fast. So they are trying to his power, but we Indians can't like this.

We know our POWERS, and all Countries also KNOW India is a big country and no body want to bit them.

We care peoples, countries, and we are kind.
Sanjay Kumar Replied to: Mansoor - 02 Sep, 2010
Afraid of what. We are divided too much by religion, language, caste and what so ever. No country wants to bite forgot 26/11? Kasab? what did you do. They butched 175 indians. Spineless indian govt. Still 70% weapons imported from other countries.
IndianAmerican Replied to: Sanjay Kumar - 04 Sep, 2010
indian american after reading to all the comments that u have posted firstly have u decided who u r indian or american
hitesh Replied to: IndianAmerican - 05 Sep, 2010
What do U mean India is a big country, on respect, sure on population and poverty? India needs to be careful about the present growth. What percent of Indians live an average life? If you take a survey of indains, majority would say they want to come to the USA? Why?
TvJ Replied to: Sanjay Kumar - 04 Sep, 2010
18: H1-B's , Start packing up your bags guys, India is calling you ! you guys have used enough loopholes in the system to stay but not anymore. Great move by Obama administration.
Posted by:USAcitizen - 30 Aug, 2010
lets boycott the USA jobs as Mr Lal Bahadur shashtri Did boycott USA's help during Ind-Pak war.
and I tell you you guys will come crawling.
dude believe me it benefits more than Indians.
for every USD given to Indians you save 5 USD and in that one USD Indians only save may be 20 cents.
Think this boet. you guys save 25 times more than an average Indian would do.
and if thats fine with you than Indians are OK
and at the end just to remind you that Columbus found you...........................................
ashok Replied to: USAcitizen - 31 Aug, 2010
Dont be a idiot ! Think ..Think loud ! It was because of this same H1B costs of services and products are less in US, which itself is causing headache to US Citizens. From Health care to Education this cost itself is unbearable to US Citizens. Yes its true that H1B works cheaper and same H1s pay to the american exchequer as tax..and benefit is for both Indians and US Citizens. Now let Mr. Citizen come and do the job with same rates. I challenge you cant leave that lifestyle in that rate. And if you do in that premium rate your bills will increases and you have to bear that. Result is even if you work you will finally get screwed up !

The wealth in the world is a constant entity. So if the growth happens somewhere the wealth gets spread somewhere else. Its a irreversible global phenomenon. Now India and China are growing funneling wealth from Europe and US. After sometime it will get distributed to Africa also..
Poor Obama or any force cant help prevent this. May be he will get some claps for short term but cant prevent the inevitable. Protectionism is going to screw America more than anyone else because its one economy built on capitlistic fundamentals. Its happening but you are not realising thats the fact. Why your Social security department is crying saying we dont have enough money to pay for you for retirement ? have you ever thought ? Why Americas health care cost is mounting ? Why education cost is mounting ? Ever thought ?

The only thing Americans can do is to swim with the growth of high growth countries and benefit from that. Or time will ring the death knell in 20 years from now. I dont mean a complete destruction , but I can tell you citizens will not be happy any more and the great American dream will remain as a dream. By the way I am a citizen.
TheUnbiasedEcnomist Replied to: USAcitizen - 30 Aug, 2010
Wait until your own supply of million fresh engineers every year comes out of college and take away your jobs for a cheaper salary and when it happens will you be happy saying that things are done at a cheaper rate and your costs are low ,so do something about it and stop complaining and we can manage our own inflation.
USACitizen Replied to: TheUnbiasedEcnomist - 08 Sep, 2010
22: India's economy has grown a lot in past few years because of IT.Yes,this type of decision is going to affect Indian IT companies and the people too.
But the truth is if this is going to happen then instead of outsourcing the people the companies may outsource the whole project to india there by reducing all the risk there is a chance of increasing demand in skilled man power in IT sectors,this will increase more jobs and will be in econimical benefits for the companies.
Posted by:Bandana - 30 Aug, 2010
23: Well, Companies (be it Indian or American) don't hire any nation's citizen, they look only the talent & they pay for the talent only. I don't think hiring only or >50% American will help them fight recession. It will even give a negative feedback to companies operating from America.

Even if talk too much here, Govt. will do what they want. Let them try this too :)
Posted by:Indian - 30 Aug, 2010
Your are right :)
Indian Replied to: Indian - 30 Aug, 2010
GSP101 Replied to: Indian - 30 Aug, 2010
26: "at least 50 percent" ?
50% of what? Is it the total work force? (or) number of people sent to the US from India as an onsite employee?

Clarify what you wanted to convey by that 50%

Moreover, a company (IT outsourcing) operating in India might no do business only with the US. Business is usually transnational. If every country demands 50% just like the US, the issue gets funny.
Posted by:Saran - 30 Aug, 2010
sorrry i want full details
Naresh Chowdary Replied to: Saran - 30 Aug, 2010
28: Obama wants to get an appraisal from his countrymen....
Posted by:sona - 29 Aug, 2010
President Obama is under immense pressure. It takes 3 seconds to promise charismatic and takes years ... to fulfill it. It's nothing but a move to lure his voters.
Rudra Alok Replied to: sona - 30 Aug, 2010
It looks the companies must now hire the nationals irrespective of their talents... then what happens to the productiveness....does it make any sense of adding to the GDP of nation.
Sanjay Pattnaik Replied to: Rudra Alok - 30 Aug, 2010
There are plenty of people and talents available today to get hired in USA to add to the GDP there is no need for complimenting from india and thanks for your concern if it's a true one :).
USAcitizen Replied to: Sanjay Pattnaik - 30 Aug, 2010