H1-B, NRIs
Asserting that "handcuffing" employers from hiring talented workers will hurt the US economy, two experts have criticised proposals to limit hiring of holders of H-1B visas coveted by Indian technocrats as "misguided."
"In order to grow the American economy and support the American workforce, Congress should expand and improve the H-1B visa programme," said James Sherk and Diem Nguyen.
As adding regulations to the H-1B programme would be a serious setback to US visa policy and would only end up hurting the US economy, the Congress should instead raise the cap from the current 65,000 to the 2001 quota of 195,000 visas a year, they said.
Sherk is a fellow in labour policy and Nguyen is a research assistant for foreign policy studies at The Heritage Foundation, a Washington think tank.
Referring to reports that two senators, Republican Chuck Grassley and Democrat Dick Durbin plan to introduce a bill that would limit the ability of companies to hire H-1B employees, the experts said an argument that H-1B visa recipients are a threat to American workers is "misguided."
"Given the current economic climate, handcuffing employers from hiring talented workers will hurt-not help-the economy, further delaying the ability of businesses to restart the national economic engine," Sherk and Nguyen said.
Many believe H-1B workers merely compete with Americans looking for work, the duo said. But "They are wrong. The US workforce is not a 'zero-sum game’, " they said.
"One hired H-1B worker does not mean an American is out of a job. In fact, the National Foundation for American Policy found that employers hired four new American workers for each new H-1B employee they hire."
Additionally, hiring H-1B employees does not lower the wages of American workers. Current law requires that when employers apply for H-1B visas, they must attest that they will pay the visa recipient the same wage they would pay an American with similar skill sets.
Rather than limiting the ability of employers to hire H-1B workers by adding more rules and restrictions, Congress should ensure the federal government exercises appropriate oversight in enforcing current laws, Sherk and Nguyen said.
Preventing companies from hiring foreign workers harms the US economy's ability to rapidly adapt to marketplace demands, they said suggesting, "Companies must be able to hire persons best suited to fill positions based on their skill sets-not their nationality."
cognizant, CTS, H1-B, NRIs
There is no cut in H-1B visas for Indians, US Consul-General for Hyderabad, Cornelis M Keur, has clarified. While the US Government had made it clear that companies give preference to Americans in employment as the jobless rate had risen to 9 percent in the wake of the recession, there had been no significant change in the H-1B visa policy, Keur maintained.
In a programme organised by the Press Club, he described as misconceived the notion that H-1B visas were detrimental to jobs for US nationals.
Raising the cap on H-1B visas would help promote economic growth by bringing in extraordinary and boosting competitiveness, he said. However, the slowdown had meant that companies receiving funds under the US Government’s bailout package would have difficulty hiring H1B workers.
However, students with requisite skills were still attractive for US employers.
Many had also interned with US companies who were now sponsoring them for their H1Bs, he said.
“There are three million Indians in United States who are contributing to its prosperity,’’ Keur said, and also made special mention of the Telugus who have made a mark in various fields besides IT.
Keur said that the Hyderabad Consulate General was processing around 350 visas a per day as against the targeted 500. But this would pick up in June once the new staff were trained by the experienced hands who had been brought in from Chennai and Delhi. There were one lakh students from Andhra Pradesh pursuing higher studies in the USA and demand was likely to increase, he said.
On students and professionals from India being at risk from violent crime, Keur pointed out that nationals of other countries also faced such hazards and that the US administration was taking steps to curb the menace.
Press Club President GS Vasu and General Secretary Ravikanth Reddy were present.
cognizant, CTS, H1-B, NRIs
The US Consulate on Wednesday denied any curtailment of H1B visas to Indians. "Due to economic slowdown world over, the US Government has taken a decision to tie up its unemployment problem which is nine per cent. But, there was no significant change in visa policy," US Consulate General, Hyderabad, Cornelis M Keur said.
"We continue to issue H1B visas with little more scrutiny", Keur told reporters at 'Meet the Press' programme organised by Press Club Hyderabad.
At the same time, the US Government has framed a policy for the companies to give preference to native Americans in employment, he added.
Obama administration has taken up a practical approach in establishing relations with the countries while there were efforts for strengthening relations with India because of the "Brain Borrowing", he said.
Making a special reference about the Andhraites whose presence can be marked in various fields in the US including IT, Keur said, "there are three million Indians in United States who are contributing to its prosperity."
The Hyderabad Consulate, the fourth in the country, was established due to the growing trade and development in the State in the fields of IT, Pharma and Biotechnology, he added.
cognizant, CTS, H1-B, NRIs
Microsoft chief executive Steve Ballmer provided a window into his family’s immigrant past to make a case for America keeping its doors wide open to allow the best and brightest to work in the land of opportunity.
The son of a Swiss immigrant father and a Jewish-American mother, the 53-year-old evoked the example of his parents as he spoke of his unease with the protectionist measures that are being planned by the new Obama administration.
“My father was an immigrant right after World War II when he went to work for the US Army as an interpreter in the Nuremberg war crimes trial. And then he met Americans in the army who sponsored him to migrate to the US in 1949,” Mr Ballmer said in an interview to ET on Tuesday.
“We are prepared to participate in broader immigration reform which allows us to bring hitech talent. My father, my mother’s parents were all immigrants. It’s a great thing for the US,” he said in response to a question about the brouhaha over H1B visas.
American companies having overseas operations are worried about President Barack Obama’s proposed taxes on income earned abroad, and India’s top tech firms such as TCS, Infosys and Wipro are anxious about rising anti-offshoring sentiment in the US.
Ballmer said his initial reaction was that such tax proposals are not good for business and that his company would continue to hire skilled professionals in countries such as India and China if Microsoft is unable to employ them in the US.
Microsoft, which was criticised by US Senator Chuck Grassley for retaining and hiring more foreign workers even as it announced plans to lay off around 5,000 employees, is one of the biggest users for H1B work permits issued by the US to skilled migrants from countries such as India.
“We opened a development lab in Vancouver of Canada because we could not get visas for everybody, and the Canadians were willing to give visas,” Ballmer said. “If the US government allows us, we will have those people to work for us in the US, but if the government does not allow us, we are prepared to have those people work elsewhere, whether it be here in India or in China.”
Regarding President Obama’s plans to tax overseas earnings of American companies to create more local jobs, Mr Ballmer said he would wait for more details. “I think the government have to be thoughtful because there are unintended consequences: will their actions create jobs in the US, or will they tend to drive even more jobs out of the US. In general, business is saying this is not a good thing,” he said. Ballmer, who had offered to buy Internet search rival Yahoo last year to compete with Google, said Microsoft is seeking to develop its own technology for search.
“People still speculate, but I have made it clear: they turned down our offer, it’s fine and we will move on. The truth is in this economic
condition I am glad they did not accept the offer of $33 (per share). They might be sad they did not accept an offer for $33, but we crossed the bridge and now we are exploring other opportunities,” he said.
Despite enjoying a near-monopoly in the computer desktop market, Microsoft still lags behind Google and Yahoo in Internet search. And open source software Linux, which is available for free downloads, also continues to put pressure on the company.
“We have competition from this funny thing called Linux, which does not even require it to be successful. In a sense we have all the best and the worst of competition; we have a competitor that’s going to keep competing whether it’s successful or not because it does not require financial resources, it’s keeping our prices down.” Ballmer, however, added that Microsoft would be open to work with Yahoo and create a stronger offering for those currently spending on advertising with Google.
“We are not going to acquire them but are open to work together. We and Yahoo together will be stronger. Everybody who advertises on Google in the US and elsewhere would like to advertise on a combination of Yahoo and Microsoft,” he added.
H1-B, Infosys, Outsourcing
Expressing concerns over the possible measures by foreign countries, especially the US, to restrict off-shoring and movement of work visa-holders, Indian IT bellwether Infosys has said that such steps could adversely impact the company's business.
The Obama administration has restricted the hiring of H-1B visa-holders by companies bailed out by the Federal government and recently announced a plan to end tax incentives for American entities generating jobs overseas.
Both moves are expected to impact the Indian IT sector, whose major chunk of revenues come from the US.
Infosys has said that in the prevailing economic environment, there could be a change in the existing laws or the enactment of new legislation, restricting "offshore outsourcing" or imposing restrictions on the deployment of work visa holders at client locations.
Such actions "may adversely impact our ability to do business in the jurisdictions in which we operate, especially with governmental entities," the IT firm said in its annual filing with the US Securities and Exchange Commission.
Nearly 60 per cent of Indian IT-Business Process Outsourcing industry caters to the US companies, according to latest figures. India's BPO industry employs over 17 lakh professionals.
Every year, a major chunk of the Indian professionals receive H-1B visas, which is basically a working visa for highly skilled people. In the previous fiscal year, nearly 8,200 Infosys employees held H-1B visas.
Moreover, Infosys has pointed out the possibility of private sector companies working with these governmental entities, being restricted from outsourcing projects which are related to government contracts. These firms could even face "disincentives if they outsource certain operations", the filing noted.
Many foreign governments mainly in the US and the UK have pumped in billions of dollars into companies battered by the financial turmoil. In return, these administrations have snapped up significant stakes in those bailed out firms.
"Equity investments by governmental entities in, or governmental financial aid to, our clients may involve restrictions on the ability of such clients to outsource offshore or otherwise restrict offshore IT vendors from utilizing the services of work visa-holders at client locations," Infosys said.
Infosys has expressed concern that restriction on deployment of trained people at client locations could require the company to seek local talent. In such a case, the "local resources may only be available at higher wages," it said.
"Any resulting increase in our compensation, hiring and training expenses could adversely impact our revenues and operating profitability," the firm said.
cognizant, CTS, H1-B, NRIs
US tightens H-1B visa rules for Indians
The United States has adopted fraud prevention tactics to prevent misuse of the H-1B visa programmes for highly skilled professionals, after complaints of outrageous abuse by Indian firms, according to a top US official.
According to the US Department of Homeland Security Secretary, new fraud prevention techniques will be used now.
The top most priority of the Obama administration is to provide jobs to the Americans but of late the senator has accused many Indian companies have been accused of misusing this visa system and profiting from it.
The H-1B work visas are for highly skilled professionals and have been most beneficial for IT sector professionals from India.
The US move is likely to hit the Indian IT industry.
On April 23, the US Senate proposed H1B visa legislation, much to the dismay of India’s IT sector.
The country’s third largest software exporter Wipro said the proposal is an antithesis to globalisation and is a restrictive trade practice.
The apex software body Nasscom said though the stated objective of the Bill is to prevent fraud and visa abuse, several of the provisions of this bill are against the principles of free trade and are creating trade barriers.
"In many ways, it is targets Indian companies and restricts their ability to compete in the US marketplace. This is also against President Obama's stand against protectionism at the G20 summit," Nasscom President Som Mittal said.
Source: ibnlive.com
H1-B, IT market, NRIs, Recession
Last November, Abhimanyu Gupta, an MBA student in New York University’s Stern School of Business, was on the top of the world when he landed a job offer from Bank of America’s investment banking division. This February , he felt right at the bottom of the abyss as the bank withdrew the offer and Mr Gupta’s world crashed just like the global markets.
Now, the 27-year-old chartered accountant, who left Mumbai in 2007 to become an investment banker in the world’s financial capital, plans to return home if he doesn’t get an offer by June when his course ends.
With five months of recruitment time gone, Mr Gupta concedes that his chances of finding similar job in the US, which is battling the worst downturn in decades, are bleak. His chances are as bleak as hundreds of other Indian and foreign national students across top universities in the US, UK and other western economies, who now plan to go back home.
The Harvards, Whartons, NYU Sterns, Kelloggs, MIT Sloans, Michigans and Dukes the dream destinations of students till the other day — no longer guarantee top-dollar jobs. One year of downturn has turned the students’ world upside down.
According to a recent study by the University of California, Berkeley, almost 84% of Indian students and 76% Chinese students in the US think it will be difficult to find a job in their field in the country.
Even lenders are tightening the noose on international students. First-year MBA students, who were relying on loans from US banks to fund their second-year expenses, are in trouble because the banks have stopped lending to international students without co-signers .
According to some students, the Obama administration’s move to put visa restrictions on companies accepting Troubled Asset Relief Programme (Tarp), a bailout fund set up by the government to help US companies come out of the downturn, too, has hit international students’ prospects there.
Now, most Indian students in the West are betting on their home country. “Not getting an offer there, they are looking homewards. Given the economic
health of the US, India seems a better option right now,” says Birla VXL chief restructuring officer Brijtendu Sarkar, who did his MBA in general management for senior professionals from London Business School last year.
The US has been in recession for 18 straight months now and has lost 5.1 million jobs so far. The world’s largest economy shrunk 6.1% yearon-year in the first quarter of 2009, following a 6.3% decline in the last quarter of 2008. A recovery is unlikely before the end of the year even in a best-case scenario.
Indian economy, which has seen a slowdown after growing at over 9% for three years, is still expected to grow at a healthy pace of 6-7 % in the current fiscal. India and China , the other emerging giant, are expected to bounce back faster and drive a global recovery.
In fact, according to the University of California study that surveyed 1,224 foreign nationals from India, China and Western Europe, almost 86% Indian students and 74% of Chinese students believe their home countries’ economies will grow faster in the future than they have in the past decade. Most students coming back home are scouting for openings in sectors where they came from, as switching industries makes it difficult to get jobs. Some are approaching their seniors settled in India. Mr Sarkar himself has got three such requests.
According to Mr Sarkar, a number of Indian students in his batch read the signs early and returned home last year, to be lapped up by a booming Indian industry. Now they are helping their juniors search jobs in Asia, he adds.
While it may be easier for these students to find jobs in India, salaries here are not very attractive for most of them who are sitting on huge education loans. An MBA in a top western university costs anywhere between Rs 40 lakh and Rs 60 lakh. Also, many Indian students in the US are married and have families to support.
Convinced that a job in India won’t earn them enough to pay off their debt and support families, some students like Arihant Chowdhury (name changed) are delaying their degrees to buy time.
Source: TheEconomicTimes
H1-B, IBM, IT market, Outsourcing, Wipro
The decision by President Barack Obama to plug loopholes in the tax regime for US multinational companies is likely to impact their Indian operations as well. Indian subsidiaries of US firms may no longer be able to claim benefits under the Indo-US double-tax avoidance agreement (DTAA).
Current US laws allow businesses to claim credit against their US tax bill on taxes paid abroad on overseas profits. Obama is planning to close such foreign tax credits, and hopes to net $43 billion. "Article 25 of the Indo-US DTAA provides relief from double taxation, subject to US domestic laws. This may now be open for a reinterpretation," pointed out KPMG head of taxation Uday Ved.
Obama's Monday announcement comes close on the heels of moves by the current administration in Washington to further restrict H-1B visas, which will not only have a direct bearing on Indian IT companies, but also on US firms that depend on overseas talent to remain competitive.
The US president has proposed outlawing three offshore tax-saving strategies commonly used by US multinationals, and is expected to generate $210 billion over the next decade. Companies like General Electric, PandG and Citigroup were being seen as among those likely to be affected. All three have a significant presence in India.
The immediate impact, reckon experts, is that Indian subsidiaries of US firms such as Pfizer, Microsoft, IBM and Oracle could see their tax bills rise significantly once lawmakers pass the measures. Deloitte tax analysts estimate that the Obama changes could boost overall US corporate taxes on average by 8%.
The new tax proposals would be effected by removing relaxations that currently allow businesses to deduct expenses on their overseas operations while paying taxes in the US and by closing foreign tax credit loopholes.
By disallowing business expenses, US multinationals working out of India or any other low-cost outsourcing hub may no longer be able to deduct costs such as employee wages while filing tax returns in the US, thereby increasing their tax liability. Corporate income attracts a 35% tax in the US.
Reacting to the tax credit proposal, Nasscom in a statement, said: "Global companies that earn profits in India are subject to a tax rate of 33.9% (including surcharge and cess) and the impact of the proposed reforms on them would be marginal." However, until the exact details of the Obama tax proposals are available, the jury is still out on their precise impact.
Analysts said Indian subsidiaries of US firms that are export-oriented units are almost certain to be hit. At present, such companies only pay an 11% minimum alternate tax and a 15% dividend distribution tax in India and claim a tax credit on these in the US. But with the planned amendment, they could end up paying a 35% tax in the US on their entire income from operations in India.
What's more, with the proposed changes, analysts said the US may no longer be suitable for setting up holding companies for non-US entities. "Even traditionally, the US has not been a favoured jurisdiction for holding non-US entities. The direction of this policy only confirms this view. More companies will reorganise their non-US businesses away from a US holding company," said Ernst and Young partner Srinavas Rao.
The Indian outsourcing industry, though, is likely to remain insulated from Obama's move. Nevertheless, in a related development, the $40-billion domestic IT industry could see significant new restrictions if the H-1B and L-1 Visa Reform Act introduced by senators Dick Durbin and Chuck Grassley is passed as it would require employers to pay H-1B and L-1 workers the highest local prevailing wage for the job.
Nasscom president Som Mittal, in an interaction with the US-India Business Council on Monday, described the legislation as "draconian". "It will have an extremely adverse impact on Indian and US companies. While Nasscom does support measures to reduce fraud and abuse of the H-1B visa programme, the provisions of this Bill deliberately targets US and Indian companies," he added.
Though H-1B employees must be paid according to the US prevailing wage structure, there is no such provision for L-1 workers. But, says KPMG India director-IT advisory services Viral Thakkar: "Wages paid to H-1B visa-holders is market dependent and usually less than what a local employee would get." Industry insiders say employers typically pay H-1B employees between $45,000 to 60,000 a year.
The Act is set to increase the cost of IT companies who now bank on low wages paid to the Indians for onsite projects. At the moment, the wage bill works out to 15-20% of sales for onsite employees for larger companies. With the proposed legislation, operating margins that were already tumbling on account of pricing pressure could narrow further.
"This provision is basically to curb the misuse of bringing employees on H-1B and paying them less than the mandatory wage. But the larger issue is there is a lack of available skills in the US and these restrictions could become a concern," said Zensar Technologies global CEO Ganesh Natarajan.
Also, employers would be prohibited from displacing a US worker with an H-1B worker in the period beginning 180 days before and after the filing of an H-1B or L-1 petition, increased from 90 days under existing law. This is expected to have an impact on project implementation, and thereby collections.
cognizant, CTS, H1-B, NRIs
First Count : April 9, 2009 - 42,000 and 20,000
The USCIS issued the first cap count on April 9, 2009. As of that count, approximately 42,000 H1B petitions had been received under the “regular” cap. While the 20,000 advanced degree limit had been reached, USCIS indicated that some more advanced-degree cases would continue to be accepted, to allow for normal rates of denials and withdrawals.
Second Count : April 13, 2009 - 43,000 and 20,000
The next count was issued April 20th, for cases filed through April 13, 2009. As of that date, the USCIS had received 43,000 regular cap cases. Additionally, advanced-degree cases were still being accepted due to the expectation that it is normally necessary to accept some percentage more than 20,000 cases to end up with 20,000 H1B petitions with approvals.
Third Count : April 20, 2009 - 44,000 and 20,000
The count for April 20, 2009 reflected an additional 1,000 regular cap filings in the week following the previous count. The advanced-degree cap filings must have been very light, as the USCIS had still not reached the limit for those cases.
Fourth Count : April 27, 2009 - 45,000 and 20,000
The fourth count was issued April 27, 2009. As of that date, approximately 45,000 regular cap cases had been received by the USCIS. Advanced-degree cases were still being accepted.
Conclusion
Regarding the H1B cap, FY2010 was very different from the couple of years immediately preceding. This is driven primarily by the economy. It appears to be a clear indication that the request for H1B workers is largely self governing, and that, when the job market is depressed, the H1B filing levels drop accordingly. Critics of the H1B program, who claim that the H1B numbers should not be increased, are incorrect in their assessment, as the supply-and-demand cycle seems to be working again with H1B filings greatly reduced due to the decrease in demand, even for highly skilled workers.
cognizant, CTS, H1-B
For all those seeking to find a job in the land of opportunity, protectionism may be eating into their dream and aspirations. In what could turn into a bitter ruling for overseas job seekers, two US senators have introduced a bill seeking to reform H1B visa procedures that would make it harder for companies to hire non-Americans.
Most importantly, the bill puts an onus on employers to prove that they had tried to recruit an American citizen before hiring an H-1B, which wasn't the case before. It also prevents companies who have a majority of H-1B employees on their payroll to hire any more.
The bill says that the employers must first make "good-faith attempt" to recruit a qualified American worker. It prohibits advertisements for only H-1B employees and also says that a company cannot hire more H-1B workers if 50 per cent employees are under the same category.
Moreover, it seeks the labour department to have more authority to investigate abuse.
However, Nasscom says it is surprised because it was in touch with people in the US Congress and administration.
“What really impacts us is the one that prohibits Indian companies from getting H1 and L1 visas. From our perspective this is targeting Indian companies. It’s protectionist in nature and it would prevent Indian companies to compete in the US markets,” Som Mittal, President of Nasscom said.
The Indian companies earned nearly $47 billion from the export of software and services around the globe during fiscal year 2009. The industry leaders say while they agree with stricter measures, the move should not be protectionist.
Suresh Senapaty CFO of Wipro, said, “There are two aspects—one is to remove the anomalies of the existing law to stop misuse and we completely support that. But if it is to promote protectionism policies, then it is against what all the leaders agreed in G20 including president Obama.”
Well, American President Obama has promised to talk comprehensively on immigration reform in May.
The US issued 85,000 visas under the H-1B category during the last financial year, of which Indian companies got 12,500. Now, getting one of these going ahead would become tougher, especially if such bills get passed.
cognizant, CTS, H1-B
US lawmakers have introduced a new bill with additional restrictions on H1 B visas. Ganesh Natarajan, Chairman of the National Association of Software and Services Companies (NASSCOM), said if this proposal passes in the current format then it will have a fairly disastrous impact on the IT sector.
“But I am hopeful that over the next three-months we will not see this really becoming an Act.” Meanwhile, Commerce Minister Kamal Nath said he is concerned by the contents of H1B visa bill by Senator Durbin and Senator Grassley. "The bill will restrict the ability of Indian IT companies to compete in the US market place. The bill is not in line with US President Barack Obama's stand against protectionism at the G20 meet and not in line with our desire to mainstream development in the Doha negotiations."
H1-B
The US has introduced a new H1-B visa legislation, which may, if voted into law, affect Indian IT companies adversely. According to the new bill, only those companies that employ a majority of American workers will be eligible for H1-B visas.
The legislation, if passed, would mean Indian IT companies in the US will need to hire locally for their work. The IT companies will also need to re-jig their onsite-offshore employee ratio, something that they say is a difficult job and may take about three to four quarters to do CNBC-TV18 was the first to report the development on February 9 where it said a team of NASSCOM officials was on its way to the US to talk with Senators Durbin and Grassley — the brains behind the legislation — to ensure that such a piece of legislation did not get pushed through.
cognizant, CTS, H1-B
As against the Congressional mandated per annum quota of 65,000, the US Citizenship and Immigration Services (USCIS) has received just 44,000 H-1B petitions in the first three weeks after the American agency started accepting applications for the most sought work visas for highly skilled professionals.
Professionals from India, specially those from the IT sector, have been benefitted the most.
But because of the certain provisions in the stimulus package which prevents American companies, having received federal grant money, from hiring overseas highly skilled workers, not many companies are willing to apply for the H-1B visa petitions this year.
"USCIS has received approximately 44,000 H-1B petitions counting toward the Congressionally-mandated 65,000 cap. The agency continues to accept petitions subject to the general cap," USCIS said in a statement Monday.
Although it has received 20,000 petitions in the advanced degrees categories, the USCIS said it would continue to accept advanced degree petitions since experience has shown that not all petitions received are approvable.
"Congress mandated that the first 20,000 of these types of petitions are exempt from any fiscal year cap on available H-1B visas," the USCIS said. "For cases filed for premium processing during the initial five-day filing window, the 15-day premium processing period began April 7.
"For cases filed for premium processing after the filing window, the premium processing period begins on the date USCIS takes physical possession of the petition," it said.
H1-B
Source: computerworld.com
Researchers say new study 'dispels the myth that globalization generates no losers'.
The use of H-1B workers by U.S. companies is decreasing wages for computer programmers, system analysts and software engineers by as much as 6%, according to a study released this week by researchers at New York University's Stern School of Business and the Wharton School of the University of Pennsylvania.
The researchers said they found evidence that the wages are falling by accessing tens of thousands of resumes provided by a "leading online job search site" they wouldn't identify, to gain demographic and wage data of individual companies. They took all that information and combined it with government and other public data sources, including H-1B visa use and outsourcing, to get what they termed a "micro-data" view of what is going on in public companies that hire visa holders and offshore work.
H1-B
US Citizenship and Immigration Services (USCIS) announced April 8, 2009, that it will continue to accept H-1B nonimmigrant visa petitions subject to the fiscal year 2010 (FY 2010) cap. USCIS will continue to monitor the number of H-1B petitions received for both the 65,000 regular cap and the 20,000 US master's degree or higher educational exemption cap. This is the first time in many years that the cap for H-1B nonimmigrant visa petitions was not hit in the initial five day filing period.
H1-B
The demand for H-1B visas to work in the US has eased as concerns mount about a possible wave of protectionism, but the scene is different for those with advanced American degrees who are eligible for 20,000 visas over and above the 65,000 H-1B visas issued annually.
The United States Citizenship & Immigration Services (USCIS) is yet to receive enough applications to exhaust the total number of H-1B visas, which are capped at 65,000 annually. However, the agency has crossed 20,000 petitions already in the advance degree category and is still accepting applications as a lot are rejected every year in this section.
“The slowdown and job losses in the US and the Employ American Workers Act, which makes it difficult for companies that have received funds under the US government’s bailout package to hire H-1B workers are the reasons behind fewer takers for H-1B visas. However, students with masters degrees and above from the US are still attractive for US employers who are finding the right kind of skills that they require. Many of these students have also interned with US companies who are now sponsoring them for their H-1Bs,” says Sudhir Shah, an immigration lawyer based in Mumbai.
Education consultants feel that US companies still need certain specialised skills and will have to hire H-1B workers and Indian students already in the US could become the first choice.
H1-B
Source: TheWallStreetJournal
Our research shows that hiring H-1B visa holders is associated with increases in employment at U.S technology companies in the S&P 500 ("Work-Visa Numbers Get Squishy -- and Get Played," The Numbers Guy, April 1).
One reason the study has been widely cited is because it reflects the real-world experiences of tech companies in hiring highly skilled foreign-born professionals and international graduate students from U.S. universities. In addition to citing the research, Bill Gates noted Microsoft's own internal findings that H-1Bs lead to increased complementary employment. Discussions with executives at eBay and other tech companies reveal the same experiences. It's common sense to job creators that hiring talented individuals leads to growth and innovation.
Our study stated that correlation isn't the same as causation. However, making inferences based on association in a regression analysis is common in much significant research, such as that showing a connection between higher levels of education and higher wages. Our findings are consistent with information from tech companies on the dynamic process of job creation, and the results hold up in estimates with different controls and subsets of firms.
While both the article and our study acknowledge that H-1B visas could indicate broader hiring, we controlled for the overall business climate and found little change in the result that H-1B professionals are associated with increased hiring at large technology companies.
If Congress continues to keep the quotas low on H-1B visas and pushes more outstanding potential immigrants outside America's borders, then we won't have to worry about debating the results of our research on job creation, since it's likely a greater proportion of new technology-related jobs and innovations will be happening in other countries.
H1-B
Source: MercuryNews
At the G-20 meeting in London, President Barack Obama showed how to act diplomatically and be collaborative and cooperative with other leading world figures. It's a shame his efforts are thrown into jeopardy by "hire American" provisions in the U.S. stimulus bill in Congress.
Make no mistake, "hire American" is no less protectionist than "buy American," which is also part of the stimulus plan. Protectionism tarnishes our soft power with which to engage.
The G-20's work becomes more imperative now that it's clear that the United States and Europe alone cannot lead us out of the economic mess we're in. Whereas the United States and Europe are in deep trouble, countries like China, India and Brazil are experiencing positive, though slower, growth. China targets 8 percent gross domestic product growth in 2009. For India, that number is 6 percent; for Brazil, 4 percent.
That the G-20 is working on a $1.1 trillion stimulus package to bring the global economy back on track transcends ideology. We — as Obama showed — must rely on our soft power to engage and collaborate with nations of different social and economic systems. Protectionism erodes this capacity because it creates an inward-looking attitude that diminishes our persuasiveness to enroll others in the free market. It calls into question our fundamental values of democracy and freedom.
America will pay a heavy price for promoting activities such as "hire American." If the United States, commanding 21 percent of the world GDP, limits trade and talent flows, and the world follows suit, our own overseas investments will suffer.
A lot is at stake. Our foreign direct investments, amounting to $2.1 trillion, will be hurt. Our multinational corporations, whose parent companies in the U.S. account for a quarter of our private sector output, will also be hurt. And finally, U.S.-owned foreign assets abroad, amounting to more than $18 trillion, will be hurt.
Protectionism is rising around the world. Only last month, a World Bank survey found that 17 of the G-20 countries have imposed some kind of protectionist policy since the beginning of this year. A bad example set by the United States will trigger a round of much more serious nationalistic acts worldwide.
With history as a guide, we know how disastrous high-intensity protectionism can be. The infamous Smoot-Hawley Tariff Act in 1930 triggered widespread international retaliation and exacerbated the Great Depression. With the World Trade Organization forecasting global trade shrinking by 9 percent this year, we can't afford measures that will lead to further slippage.
This month foreign workers are entering H-1B visa applications into a lottery, which was put in place to handle submissions far exceeding the 85,000 cap for visas. For years, America has been turning away skilled foreigners. These intellectuals are not feeling the love.
A recent study conducted by Harvard and Duke universities shows an increasing number of foreign students in American institutions plan to return to their home countries after we have helped to educate them. "Very few would like to stay in the U.S. permanently — only 6 percent of Indian, 10 percent of Chinese, and 15 percent of European students," according to the report.
The situation will only worsen as the stimulus package discourages bailed-out financial services firms from hiring H-1B visa holders.
We simply won't have enough labor down the road. The U.S. Labor Department predicts a net drop of 3.1 million in labor supply comparing the period of 2006-2016 to the prior decade. What all this means is that "hire American" will only harm America.
John Chen is chairman, CEO and president of Sybase Inc. He wrote this article for the Mercury News.
cognizant, CTS, H1-B
Reflecting the mood of the Silicon Valley, prominent media outlets from California have come out openly in support of the H-1B work visas and opposed increasing the "hire Americans" call in the United States.
"The H-1B program is good for California and good for the country," wrote San Francisco Chronicle in an editorial today.
Speaking out against the provision of the stimulus bill that blocks H-1B hiring by companies, which have received federal money, the newspaper asked the two Californian Senators, Barbara Boxer and Dianne Feinstein, to work towards reversing this provision.
"This is more than just a political debate," it argued. "The H-1B program, though small in relative numbers (new H-1B visa holders represent just 7 out of every 10,000 workers in the United States, according to the National Foundation for American Policy), has real impacts on our economy and our society," the newspaper said.
"Foreign students and workers who might prefer to stay in the US can, and increasingly will, return to their home countries to launch businesses. They can then compete with American companies instead of adding value to them. And when they return home, they can honestly say that America is not the land of opportunity for people like them," it said.
In another column, CEO and president of Sybase Inc John Chen wrote in Mercury News that "Hire American" is a slogan which does not help America.
The situation in the country would only worsen, Chen said, as the stimulus package discourages bailed-out financial services firms from hiring H-1B visa holders.
"We simply won't have enough labour down the road. The US Labour Department predicts a net drop of 3.1 million in labour supply comparing the period of 2006-2016 to the prior decade. What all this means is that hire American will only harm America," he wrote.
H1-B, NRIs
As the US is having a tough time in filling up its annual quota of 65,000 H-1B work visas for highly skilled categories, an official report here has said that the Indian nationals accounted for the 38 per cent of the total H-1B visas issued by the United States last year.
India also accounts for maximum number of people entering the US on L-1 visa, which is primarily used for intra-company transferees, said the Annual Flow Report released by the Office of Immigration Statistics.
The report is based on the information gathered from the I-94 on the number and characteristics of non-immigrant admissions to the US in 2008.
The report said Indian nationals accounted for 157,726 (37.8 per cent) of the 409,619 H-1B Admissions in the US in 2008. In actual figures, this is a drop of about 3,000 as compared to 2007 when 157,613 Indian citizens were admitted to the US on H-1B visas. In 2006 the figure was 125,717.
The annual report reveals that Canada is a distant second in terms of H-1B visa admissions. In 2008 as many as 23,312 Canadian nationals were admitted to the US on this visa category, followed by Britain (19,209), Mexico (16,382) and China (13,828).
"The leading countries of citizenship for H-1B admissions in 2008 were India (38 per cent), Canada (5.7 per cent), and the UK (4.7 per cent). Nationals from these three countries accounted for 48 per cent of H-1B admissions," the report said.
As for the L-1 visas, it said, in 2008 leading source countries in this category were India (17 per cent), Britain (14 per cent), and Japan (9.8 per cent). The nationals of these three countries accounted for 40 per cent of L-1 admissions, it said.
Of the total of 382,776 L-1 Admissions in 2008, as many as 63,156 were from India. This is almost twice the 33,414 admissions in 2006. This is for the first time that India has topped in the L-1B visa category, which so far was occupied by Britain for the past few years.
With H-1B visas becoming tough in the last few years, Indian companies had increasingly relied on L-1 visa category for sending highly skilled workers to the US.
