Showing posts with label H1-B. Show all posts
Showing posts with label H1-B. Show all posts

Thursday, July 2, 2009

, , ,

H1B petitions: Over 20,000 vacancies still left

Nearly three months after the US immigration agency started accepting petitions for the H-1B visas for highly-skilled foreign professionals, it is still looking for more than 20,000 applications to fill the Congressionally-mandated cap of 65,000.

Amid the economic downturn and protectionist provisions in the US stimulus package, the demand for the visas, which is mostly availed by Indian professionals, has slowed down. The latest figures released by the US Citizenship and Immigration Services (USCIS) reveal that approximately 44,800 H-1B petitions have been received by it so far.

In the last few years, there was huge demand of H-1B visas, with the USCIS receiving several times the quota of 65,000 in the first few days itself. It had to resort to computerised lottery to determine the successful applicants.

But with current economic downturn and certain provisions in the economic stimulus package, the H-1B petitions to the USCIS centres are now coming in ones and twos.

This is in contrast to the last few years, when the US Postal Services had been making special arrangements for delivery of bundles of H-1B petitions. The economic stimulus package prevents hiring of foreign workers by companies receiving federal aid money.

However, officials at the USCIS said it is work back to normal. "This is what it used to be couple of years ago, before it turned out to be a great rush in the last few years," a USCIS official said.

The USCIS also said it would continue to receive applications for the advanced degree category, in which the cap is 20,000. The USCIS had received about 20,000 H-1B petitions in the first few days itself, but it is still continuing to accept such applications, it said.

"USCIS will continue to accept both cap-subject petitions and advanced degree petitions until a sufficient number of H-1B petitions have been received to reach the statutory limits, taking into account the fact that some of these petitions may be denied, revoked, or withdrawn," it said.

Monday, June 29, 2009

,

US immigration rules blamed for brain drain

Silicon Valley is facing a brain drain of high-achieving foreign-born students, more of who are leaving in the face of a chilly local immigration envi-ronment in a trend experts say will hurt US high-tech industry competitiveness in the long run. A more attractive employment environment over-seas and a bad local economy are increasingly prompting graduates to head home in search of rosier prospects. This is depriving the Valley — often called the cradle of global tech innovation — the fresh blood it needs to remain at the vanguard of hot new industries such as clean technology.

“I believe we are going to innovate our way out of the economic woes we have, and in order to do that you need innovators,” Zoe Lofgren, a Democrat who chairs the immigration subcommittee, said. “It means not sending out people who are innovators who want to become Americans,” said Lofgren, one of the congressional leaders who will meet this week to discuss the matter with president Obama.

More than half the start-ups that emerged from 1995 to 2005 in Silicon Valley — the area near Stanford University in Northern California that spawned the likes of Intel and Apple — had a founder who was a foreign-born national, according to a 2007 study by Duke University professor Vivek Wadhwa. But many foreigners now face a long wait for permanent residence and have come to believe that will never change.

Ken Wilcox, president of Silicon Valley Bank in Santa Clara, said the US now faces an imperative to help talented foreigners stay. “We’re simply not producing, in relative terms, significant numbers of engineers or scientists from people who have already been here for a number of generations,” said Wilcox, who specialises in helping the start-ups that gave his bank its name. “You’ve got to bring them in from the outside.”

Foreign nationals earn half the master’s degrees and 71 per cent of the doctorates in electrical engineering at US universities, according to the House immigration subcommittee. But they are increasingly unlikely to stay. Duke University’s Wadwha said the US lost 100,000 highly educated foreigners over the last 20 years, but faces accelerating losses of 100,000 to 200,000 in the next five years. “The US is experiencing a brain drain and doesn’t even know what that means,” he said.

The combination of better job climates in India and China and seemingly interminable waits for US permanent resident status has changed the calculus for most students, he said. Wadhwa said 60 of the 65 foreign engineers among the 120 he helped train this year to be business executives are leaving for India, China, and Turkey.

Sunday, June 28, 2009

, ,

H1B Cap : June 19, 2009 Update

The USCIS cap count as of June 19, 2009 reports 44,500 regular cap cases. This is slightly higher than the cap count given on June 12, but is still lower than a count given for May 22, 2009. As of this writing, both the Advanced Degree and Regular H1B Caps remain open. We will continue to provide updated cap count information as it is made available.

Wednesday, June 24, 2009

,

Temporary US visa holders in Washington to get subsidised tuition

Under the new House Bill 1487, which is to be introduced on 1 July, foreigners working in the US state of Washington on certain temporary US visas such as H-1B visas will receive the same subsidized tuition fee charges as American citizens. Low-cost tuition fees will also apply to the workers' spouses and dependants.

The bill has been nicknamed the ‘Microsoft Subsidy Bill’ and has caused some controversy, but has been passed through the House and the Senate as a good way to help large international firms in Washington attract foreign talent to come and work in the US. Currently, 13 other states offer some subsidised tuition for foreign workers and the Washington bill is intended to help the state compete with these.

Under the plans, an immigrant state resident will pay $7,677 for a years tuition at the University of Washington, which compares to the £24,352 that was payable before the subsidy scheme.

Lydia Tamez, Microsoft’s director of global migration, says the new bill allows spouses, who often cannot work under their US marriage visas, to study while they are living in the US.

She explains, "these are people who are here lawfully, and are going to be here for a long period of time. It makes it affordable for workers who are your neighbors, pay taxes, buy homes and whose kids hang around with your kids to possibly earn a second degree at night."
, ,

Wipro: Deal pipeline healthy

Wipro Ltd, India’s third-largest software-services provider, has a “healthy pipeline” of projects this year as customers rebound from the recession, said Suresh Vaswani, head of the company’s information-technology unit.

“We’re fairly confident in terms of customer activity, booking, and a healthy pipeline,” Vaswani, the division’s co- chief executive officer, said in an interview. “Lots of meaningful discussions are taking place.”

Customers in manufacturing and retailing are among Wipro’s strongest, said Vaswani, 49. Some clients had curbed technology budgets to shield themselves from the worst global economic slump since at least World War II, leading Wipro to project little change in this quarter’s sales from a year ago.

Wipro designs and builds software programmes, maintains computer networks and provides product-engineering services and back-office support to General Electric Co, Cisco Systems Inc, Citigroup Inc and other customers. Computer services contributed more than 90 per cent of Wipro’s operating income in the year to March 31. The company also makes soap, light bulbs and hydraulic equipment.

Wipro, which trails Tata Consultancy Services Ltd and Infosys Technologies Ltd, fell 1 rupee to 379.35 rupees in Mumbai trading yesterday. The stock has gained 63 per cent this year. Wipro’s American depositary receipts fell 6.1 per cent to $10.66 at in New York Stock Exchange composite trading.

US growth
Wipro plans to hire more workers in the US to drive sales and reassure Congress at a time when President Barack Obama is predicting the US unemployment rate will climb to 10 per cent. The US accounts for about 60 per cent of the information-technology unit’s sales.

“Growth has to be there in the US and growth has to be there in Europe for growth overall to sustain,” Vaswani said. The World Bank said that the global recession will be deeper than predicted and warned that there will be a flight of capital from developing countries.

A proposal by Senators Dick Durbin and Charles Grassley would bar companies from hiring more workers with H-1B or L-1 visas if more than half of their US employees have such visas.

Tuesday, June 23, 2009

, , ,

H1B Cap: Count Decreases to 44,000 as of June 12, 2009

US visas for foreign workers still available:
The most recent USCIS H1B cap count indicates a lower number of cases than had been previously reported. The updated count reports the receipt of 44,400 “regular” cap cases, through June 12, 2009. This is lower than the previous count of 47,700, given as of May 22, 2009. No explanation was provided. Thus, this reduced number may reflect either withdrawals by employers, denials by the USCIS, duplicate filings, or an error in the prior cap counts.
, , , ,

US protectionism will be counter-productive: Azim Premji

Wipro Technologies founder Azim Premji, has stressed that the recent American decision to clamp down on H1B visas for skilled workers which could halve the number of Indian IT specialists entering the country, would be counter-productive.

"If we get into protectionism, then the West is going to get a wave of protectionism in response, and that is going to turn back the clock 20 years," Premji told The Sunday Times. "And it will be America and Europe that suffer," he said because they will be excluded from the only growth markets left, in Asia, Africa and China. You are not going to grow at 10 per cent trading in London, are you," he asked.


Premji, who holds 79 per cent stake in Wipro, one of the world's biggest software support groups said, "We will grow this year, though it won't be at the 16 per cent rate of last year. First, there is significant slowdown taking place, there are budget cuts, deferment of decisions..."

Wipro Technologies, headquartered in Bangalore and with revenues of 3 billion pounds, has become the world's largest provider of independent research and development services, working with technology partners like Microsoft and Cisco.

In Britain it provides IT services for firms, including Tesco, Wm Morrison and Friends Provident. Beyond IT, Wipro also has interests in consumer products, medical systems and engineering divisions. "We are the second-largest hydraulic cylinder company in the world," Premji said.

The Indian outsourcing giants would benefit from the current downturn, as all multinationals seek further economies, he said. But will an Indian IT giant ever buy one of its larger western rivals. He shrugs. Wipro has always preferred to buy small, Premji added.

The founder of the IT giant further indicated that he would pass over large amount of shares to his education foundation in India.

Thursday, June 18, 2009

,

Protectionism, racist attacks to affect Indians' dollar dreams

The protectionist measures in the West and attacks on Indian students in Australia are likely to negatively affect the Indians' overseas job dreams and the aspirants may prefer domestic offers, experts believe.

The anti-outsourcing pitch has been gaining momentum in the US ever since the Barack Obama administration assumed office early this year and the government has been encouraging the companies there to hire local people.

Besides, the recent attacks on some Indian students, allegedly on racism grounds, in Australia is also said to be affecting the Indians' plans to go to the Asia-Pacific nation, which has been a favoured destination thus far.

"People are apprehensive for overseas jobs after these recent attacks. Australia as a country will be somehow affected in attracting overseas talent," executive search firm GlobalHunt India Professional Leader Sunil Goel said.

Global staffing services major Manpower's India Managing Director Naresh Malhan also said: "We should take cognisance about the recent incidents (attacks on Indian students) that have happened in Australia.

"There would be an impact on Indian people looking for jobs abroad but it would be short lived as the need for Indian talent and its attractiveness is established beyond doubt across the world."

The recent attacks on Indian students Down Under has left both students as well as overseas job seekers shaken and apprehensive.

Coupled with this, US President Barack Obama's recent statement on the increased importance of Indian students and the growing concern that jobs are being offshored to places like "Bangalore", have left the Indian community baffled.

While unveiling plans for tax reforms recently, Obama said that his country would "stop letting American companies that create jobs overseas take deductions on their expenses when they do not pay any American taxes on their profits."

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.

"We are advanced in technology and serving global market as back operation hub. Definitely, anti-outsourcing and racist attacks will encourage Indians to take up jobs in home country, which in turn will increase competitive edge for us," Goel said.

At a recent meeting, Obama urged the nation to hone their skills and become more competitive.

"We have got to pick up the pace because the world has gotten competitive. The Chinese, the Indians are coming at us and they are coming at us hard, and they are hungry and they are really buckling down," the US President had asserted.

According to experts, India is one of the fastest growing economies of world and offers ample opportunities at competitive compensations.

Goel noted that BPO industry in India has grown “because of cost effectiveness and skills availability.

Tuesday, June 16, 2009

, , , ,

FAQs: H1B Workers and Layoffs

Courtesy: murthy.com
Question 1. I am in H1B status, but I also filed my I-485 and received an Employment Authorization Document (EAD). Do I need to maintain H1B status, or can I just rely upon my EAD?

It is permissible to rely upon the EAD. However, it is advisable to maintain H1B status if possible. The level of risk when relying upon the pending I-485 and EAD depends upon the specifics of the case. The risk is much greater if the employer's I-140 petition has not been approved. Some of these matters were addressed in articles on AC21 "green card" portability, available on MurthyDotCom.

Question 2. I was laid off a month ago and my company has informed me that it sent U.S. Citizenship and Immigration Services (USCIS) a letter revoking my H1B petition. What happens if I find another H1B employer in the meantime?

The USCIS typically takes several months to process H1B revocation notices. The revocation does not prevent the approval of an H1B by a new employer, although the ability to extend H1B status in the U.S. is affected by whether or not the individual is maintaining H1B status at the time the new employer files its H1B petition.

As a practical matter, the revocation of the H1B may not appear in the USCIS system immediately. However, this is a matter of procedure and not official policy. It is necessary to make efforts to find another job as soon as possible and have the new employer sponsor another H1B promptly. The USCIS will review the proof of status submitted with the new employer's case. This is normally in the form of current pay stubs. If there are not current pay stubs as proof of continuing status, it may not be possible to obtain an extension of stay (reflected in an approval notice with an I-94 at the bottom.) Thus, the new employer's H1B petition may be approved, but with an instruction to depart the U.S. and request a visa at a U.S. consulate. In this event, it would be necessary to travel abroad, obtain a new H1B visa at the consulate (if needed), and obtain a new I-94 card at the Port of Entry.

---

Question 3. I have an H1B petition with Company B and was just laid off. I have an H1B petition through Company A, where I used to work, which has not expired. Company A would like me to come back to work for them. They did not revoke the H1B petition when I left. Can I go back to work for Company A?

Potentially, yes. Under a USCIS opinion letter, it is permissible to return to work for employers with "dormant" H1B petitions and maintain status in that fashion. This may create issues for the employer, as employers are required to pay H1B employees, unless they are terminated. Therefore, Company A in this situation was required to revoke the H1B petition upon the termination of employment. By hiring the employee again later, there is a potential for the Department of Labor to enforce payment of back wages. (Of course, this potential also exists when the H1B petition isn't terminated, even without rehiring the employee.) This is an employer matter. Employers in this situation should consult with their immigration attorneys to protect their interests.

---

Question 4. If I am being laid off, can I apply for some other status?

In certain circumstances, it may be possible to apply for another status. There are a number of different options. Depending upon one's individual circumstances, s/he may qualify for another category. The most direct option, if it is available, would be as a dependant of one's spouse. This is potentially possible if one has a spouse who holds an independent nonimmigrant status, such as her/his own H1B, L1A or L1B. This may permit a change to H-4 or L-2. The L-2 is particularly beneficial, since it allows one to request employment authorization.

Some individuals apply for student status (F-1), if they wish to return to school to further their educations. This can be a good option, as people often choose to enhance their skills during difficult economic times. There are those who may choose to depart the U.S. and look for options in their home countries or elsewhere. These individuals may be eligible to apply for changes of status to tourist (B-2) in order to wrap up their affairs in the United States.

---

Question 5. If I apply to change my status, is it then possible to revert to H1B if I find a new employer?

Generally, yes. It can be a bit complex and confusing if the first request to change status is not yet granted. It is generally best not to have multiple applications or petitions filed in parallel. These issues of coordination of filings should be discussed with a qualified immigration attorney.

It is normally possible to change, for example, from H-4 status back to H1B, if one is eligible for more time in H1B status. The change to H-4 or any other interim status does not subject the individual to the H1B cap. The same is true of changing back to H1B after completion of studies as an F-1.

---

Question 6. What happens if I am terminated but the company keeps me on as an employee without pay?

It is extremely unlikely that USCIS will consider a person as being “in status” when s/he is not actually employed and being paid. This is a dangerous option to pursue, both for the individual and the company. When applying for a change or extension of status, it is expected that one's current status is documented by recent pay stubs. Without these, the USCIS is unlikely to regard one as having been in status. It may, in this situation, be possible to obtain an H1B petition approval for consular processing, rather than as an extension or change of status in the United States.

---

Question 7. If the company gives me a severance package that includes receiving pay for two months or more after I am laid off, am I still considered terminated and therefore “out of status” during those months?

According to a legacy INS memo on the subject, H1B workers are considered out of status from the day they stop working. It makes no difference that they may still be receiving pay. However, status is normally shown through pay stubs submitted with the new employer's H1B petition. As long as there is no misrepresentation of the situation, since the USCIS often overlooks brief gaps in pay stubs, it may be possible to obtain an extension or change of status during a period when one is receiving severance payments.

---

Question 8. Can I still file for an H1B "transfer" one month from the time I was laid off? What about four months from the time I was laid off? I do not have recent pay stubs.

Technically, H1B status ended upon termination of the position. Since H1Bs are not "transferred," however, the fact that one does not hold H1B status does not prevent obtaining approval of an H1B petition through a new employer. USCIS regulations prohibit the change or extension of status for individuals who are out of status (with limited exception for certain unusual situations). Status for H1B workers normally is demonstrated via pay stubs. However, the USCIS is sometimes a bit flexible and will overlook minor gaps in status when making decisions regarding these cases. If the gap in status is too great, the employer may be able to obtain the approval of the H1B petition, but it will not be accompanied by an I-94 authorizing additional time in H1B status in the U.S. It will be approved for consular processing outside the U.S. This means that it becomes necessary to leave the country, make application for an H1B visa at a U.S. consulate (if needed) and obtain an I-94 card upon reentry. If there have been extended periods without status, this may create problems in obtaining a new visa at the consulate. There are also matters of bars on reentry to the U.S. for individuals who were unlawfully present in the United States for extended periods. Thus, the importance of having each situation analyzed by an experienced and qualified immigration attorney, who can assess these risk factors, cannot be over stated.

---

Question 9. I was recently laid off and was told that my employer is obligated to continue paying me until the USCIS revokes the petition. Is this true?

According to Department of Labor (DOL) Regulations, an employer must continue to pay the H1B worker until there is a “bona fide” termination of the employment relationship. There are various cases interpreting the precise expectations in different ways. Employers would be well advised to put terminations clearly in writing, and take all necessary internal steps within their organizations. They must also request revocation of the H1B petition in a timely manner, and comply with the return airfare obligation. As it can take several months for the USCIS to act on a request to revoke, employers generally do not continue wages awaiting this action. An employer usually notifies the employee of the termination date, and continues payment only for the length of any standard company notice or severance pay policy.

Conclusion

The U.S. economy suffers downturns at times that are followed by periods of relative prosperity. Even financial experts do not seem to know how long the economy will struggle before there is a recovery. While difficult for everyone, such conditions can be particularly stressful for foreign nationals in employment-dependent immigration statuses. We at the Murthy Law Firm will continue to guide our readers so that they can manage their immigration through these trying times.

Monday, June 15, 2009

, ,

US protectionism: Infosys hires Americans

Infosys Technologies Ltd, India’s second-largest provider of software services, plans to boost hiring in the US if a proposal to restrict the country’s work visas becomes law, said B G Srinivas, a company executive.

The recruitment would be in addition to existing projects, Srinivas said in an interview from London, where the senior vice president heads the company’s operations in Europe and manufacturing-services unit worldwide. Bangalore-based Infosys has budgeted 1,000 new US employees by the end of 2010.

“We have already started the hiring engine, but we haven’t hired yet,” Srinivas said in the telephone interview. “All actions have been taken, including locations where this hiring will happen, what kind of profiles -- those plans are in place and we can execute at any time.”

Infosys, whose clients include General Electric Co and General Motors Corp, has about 10 per cent of its 104,900 employees in the US, mainly Indians on H-1B foreign work visas. The proposal by Senators Dick Durbin of the Democratic Party and Republican Charles Grassley would require the company to replace half of them with Americans. They submitted the bill in April as the US battles its highest unemployment rate since 1983.

“The first signs of protectionism are there,” Krishnakumar Natarajan, the chief executive officer of Infosys’s smaller rival MindTree Ltd, said in an interview this week in Bangalore. “The sentiment is clearly, ‘Hey, when there are job losses here, why should they go outside?’”

A possible US law limiting foreign visas comes as Armonk, New York-based International Business Machines Corp, the world’s largest provider of computer services, adds staff in India and challenges Infosys, larger rival Tata Consultancy Services Ltd and their peers in their home market.

Infosys has risen 57 per cent in Mumbai trading this year, compared with a 62 per cent gain at Tata Consultancy. The benchmark Bombay Sensitive Index has advanced 62 per cent.

The Durbin-Grassley bill “obviously is a concern if it gets implemented in full and with no time lag,” Srinivas said. “Over a period of two years, we can easily manage.”

Friday, June 12, 2009

, , , ,

Anti H-1B visa bill introduced in U.S. Senate

Two months after introducing the Durbin-Grassley visa reform bill in India and the U.S., the bill has once again been brought before the U.S. Senate. The bill if legalized will have serious implications for Indian IT companies as well as Indians seeking H-1B visas.

The bill, introduced by U.S. Senators Dick Durbin and Charles Grassley, contains specifications that companies will have to follow to attain U.S. work visas called H-1Bs and L-1s. The bill according to the Senate's website has officially been logged as, S. 887; A bill to amend the Immigration and Nationality Act to reform and reduce fraud and abuse in certain visa programs for aliens working temporarily.

The most controversial of these stipulations is the '50/50' provision which would prohibit companies from obtaining any additional work visas if they have more than 50 U.S. employees and more than 50 percent of their entire U.S. workforce is made up of H-1B or L-1 visa holders. The provision could prevent companies like Wipro and Infosys from hiring more Indian workers to work in the U.S.

Rising unemployment in the U.S. has been cited as a reason for introducing the bill. Claiming that the provision would help protect American jobs, Grassley says, "The original rationale was that we needed to allow importation of managers and technical people when there weren't enough Americans available. It seems to me ridiculous that companies now have more than half of their workers on these visas when there are certainly a lot of workers in the U.S. who can fill in some of those positions."

There have been numerous outcries against the bill. Opponents in the U.S. for instance called the bill a piece of socialist legislature and a sign of growing U.S. protectionism. Top executives at firms like Tata and Infosys have said that the argument over the legislation could eventually lead to a trade dispute between India and the U.S.
,

India is an 'absolutely critical country' for U.S.: Obama

U.S. President Barack Obama has despatched a personal letter to New Delhi making it clear that India is "an absolutely critical country" with which Washington is keen to work, a top official has said.

U.S. Undersecretary of State William Burns, who is in New Delhi to make the first high level contact with the Manmohan Singh government since its return to power, would be delivering the "presidential letter", the envoy, Richard Holbrooke, told reporters Wednesday without providing details on the contents.

"It's a private letter," said Holbrooke. "But the important thing is that the number three person in the Department of State has gone to India to reaffirm immediately after the election,"said the U.S. special envoy for Afghanistan and Pakistan.

"Burns is now beginning the dialogue with the newly elected government in an atmosphere of great positive feelings," he said. "And without getting into Indian politics, all I can say is that all of us - Secretary (of State) Hillary Clinton, Bill Burns, myself, President Obama - everyone looks forward to working with the newly elected Indian Government."

"He is carrying the messages that I would have carried if I had had time to go to New Delhi on this trip, but I couldn't do it," said the envoy, who visited Pakistan last week to assess relief efforts to help the estimated two million people who have fled a Pakistani offensive against the Taliban.

"All I can tell you is that this Administration believes that what happens in Afghanistan and Pakistan is of vital interest to our national security. And ...that India is a country that we must keep in the closest consultations with."

"And we consider India an absolutely critical country in the region," Holbrooke said. "They're not part of the problem, but they are vitally affected, and we want to work closely with them," he added explaining what some observers have described as a hole in Obama administration's foreign policy focused on Pakistan and Afghanistan.

"The Indians were very frank with us. They wanted to keep in touch with us during the election period, but they had to wait through the election, just like we do. It's the world's two greatest democracies."

Holbrooke, who visited New Delhi on his first two trips to the region, said next week he would be meeting the new Indian ambassador to the U.S., Meera Shankar, whom he already met twice.

Monday, June 8, 2009

,

Work Visa Bill Threatens Indian Outsourcers

Source: BusinessWeek
A controversial "50/50" provision in the Durbin-Grassley visa reform bill could hurt Indian outsourcing firms. Advocates say it will save American jobs.

A new bill in Washington aimed at tightening the rules for companies in the U.S. that hire skilled workers from abroad could threaten the business model for outsourcing firms such as Wipro Technologies (WIT), Infosys Technologies (INFY), and Tata Consultancy Services (TCS.BO). Top executives at those firms say the legislation could also escalate into a trade dispute between India and the U.S.

The bill, introduced by Senators Dick Durbin (D-Ill.) and Charles Grassley (R-Iowa), would change many of the rules companies must follow to obtain temporary work visas, known as H-1Bs and L-1s. The most controversial new rule would bar companies with more than 50 U.S. employees from getting any additional work visas if more than 50% of their U.S. workforce is made up of H-1B or L-1 visa holders.

THE 50/50 RULE
Grassley says the "50/50" provision would help protect American jobs at a time of rising unemployment. "The original rationale [for the visa program] was that we needed to allow importation of managers and technical people when there weren't enough Americans available," he said in an interview. "It seems to me ridiculous that companies now have more than half of their workers on [these visas] when there are certainly a lot of workers in the U.S. who can fill in some of those positions."

Som Mittal, president of the NASSCOM trade group that represents India's software and services companies, says the Durbin-Grassley bill has some valuable elements, including tougher oversight to prevent visa fraud. But he says the 50/50 provision is misguided and dangerous. If enacted, the legislation would stop virtually all of the major Indian outsourcing firms from bringing new employees into the U.S., jeopardizing their work for American clients. "Both U.S. and Indian industry would suffer," says Mittal. "A lot of disruption would happen."

Azim Premji, executive chairman of Wipro, says the Indian government is likely to take action if the legislation passes in its current form. The technology-services sector is critical to India's economy, with software and services together accounting for about a quarter of the country's exports. "There is no way our government can take it lightly," says Premji. "It's a vital piece of the economy." NASSCOM and its member companies are also making their case to American lawmakers and the Obama Administration.

THE INDIAN OUTSOURCING MODEL
The work visa program was established nearly 20 years ago to allow U.S. companies to bring workers with rare skills into the country. Among the most active participants are Microsoft (MSFT) and IBM (IBM), as well as Wipro, Infosys, and Tata. But American tech companies tend to use work visas differently than Indian outsourcers. While companies like Microsoft and Google (GOOG) often use the temporary visas as a stepping stone to permanent residency for talented workers, outsourcing firms typically post visa workers in the U.S. on a short-term basis, in many cases about 18 months. The workers then return to India, where they continue to work for the outsourcer on behalf of U.S. clients.

The outsourcing firms' business model, developed over the past decade, has worked well for them and their American clients. When they win contracts to manage the technology, accounting, or other operations for U.S. corporations, the Indian firms typically handle the work with about 20% to 30% of the employees in the U.S. and 70% to 80% offshore. The mix allows the companies to benefit from the lower wage rates offshore, while doing the most critical work, such as testing software applications, on-site. In the past several years, offshore outsourcing firms, particularly from India, have dominated the list of companies awarded H-1B visas.

Mittal says outsourcing firms and visa workers have helped American companies—and by extension the U.S. economy. "They have added to the competitiveness of the U.S.," he says. "They are extremely important to U.S. companies seeking to lower costs."

But U.S. tech worker groups say this arrangement allows outsourcers to displace American workers both while the visa holders are in the U.S. and when they return home. They say the visas depress wages in the U.S. by increasing the supply of workers. An April 2009 report written by Prasanna Tambe of New York University's Stern School of Business and Lorin Hitt of the Wharton School at the University of Pennsylvania estimates that H-1B admissions at the current levels are associated with a 5% to 6% drop in wages for computer programmers and systems analysts over time. Durbin and Grassley say their legislation is aimed at halting the use of U.S. work visas to send jobs overseas and lower wages.

OPTIONS FOR OUTSOURCERS
If the bill were to pass in its current form, outsourcing firms could change their practices in several ways to reduce the ratio of visa holders to total employees in the U.S. Options include hiring more American workers, creating more jobs overseas, acquiring other companies to dilute visa holder ratios, or some combination of these moves. Infosys CEO Kris Gopalakrishnan says that if the bill passes, his company will pursue a mixed strategy: "We will have to increase our recruitment in the U.S., and some work that's now done on-site will have to shift to offshore locations." Gopalakrishnan says that while the business model would change, he is confident that the bill wouldn't affect the company's financials in the long term.

Wipro's Premji says that passage of the bill would mean "transition periods during which business will suffer". Like Gopalakrishnan, his strategy would be a combination of more U.S. hiring with more hiring offshore. His company would likely reduce its onshore staff for U.S. work from 25% to between 10% and 12%. He says that in anticipation of visa law changes, Wipro has already started hiring more Americans at its centers in Atlanta and Troy, Mich. Other outsourcing firms may follow suit: An analyst report by UBS (UBS) estimates that Cognizant Technology Solutions (CTSH) would need to hire 4,300 to 6,500 additional American employees to meet the legislation's requirement.

There is no guarantee that the Durbin-Grassley bill will become law. It is likely to be considered in Congress alongside proposals for comprehensive immigration reform. The bill would still need to pass the Senate and the House, and it could be modified along the way. However, its chances of passing likely will increase if the unemployment rate in the U.S. continues to rise. Executives at the outsourcing firms vow to fight the legislation and particularly the 50/50 provision, which they say is an unfair restriction of Indian companies' ability to compete in the U.S. "It certainly does surprise us that the U.S., being so capitalist, is now going in the opposite direction," says Natarajan Chandrashekaran, chief operating officer of Tata Consultancy. "We certainly have to be watchful.

Monday, June 1, 2009

, , , ,

Wipro `warns’ US on H1-B

Wipro's executive chairman, Azim Premji, has warned that a proposal to restrict hiring holders of H1B visas for skilled workers will choke America of talent coming in and could generate a trade war with countries such as India.

"In my opinion it's a very drastic initiative," he said in an interview, referring to a bill in the US Senate basically preventing firms from hiring H1Bs in the US or bringing in holders of L1 visas for semi-skilled workers.

"It will choke the United States of talent coming in. You will not be able to substitute the absence of this talent with local hires because it's not easily available," Premji said.

"Also, you'll generate a trade war with countries such as India," he said, calling it as a freedom-of-trade issue. "It's precisely what President (Barack) Obama said in the G20 meeting: The United States will not get into a spate of protectionism."


Premji suggested the US must realise that today 60 to 70 percent of the growth of the revenues of large American companies comes from India and China.

"These are the growth markets. It's a simple thing for our government to raise tariffs. It's a simple thing for our government to say no American corporation will get central or state government contracts, or defence contracts," he warned.

Noting that the software and BPO industries for India represent 24 percent of its exports, Premji said: "These are critical industries for emerging countries... There's no way our government can take it lightly."

Asked what would happen if the bill passes, the Wipro chief said Obama "is too sensible to pass it. He's too mature".

Describing global trade in IT as vital "because the economies of all countries are getting more and more the dominance of services, versus manufacturing and agriculture", Premji said: "To risk a cycle of protectionism, it's not worth it."

"What's the total of visas issued in a year? 20,000 to India. What will you achieve? The 20,000 will come down to 12,000. You'll create 8,000 more jobs, theoretically, with the rules. "What's that compared to 9 per cent unemployment on a total labour force of 100 million?" he asked, calling it "a very short term approach".

Asked why IBM and Accenture were employing so many people in India, Premji said: "They like the low labour rates... the quality of the people, the willingness to work hard. They're not getting the people they need in the United States. That's the bottom line."

Tuesday, May 26, 2009

, ,

Why Infosys cuts H1-B visas

Even as the strong anti-outsourcing lobby in the US is forcing US lawmakers to take a relook at their H1-B visa strategy amid huge job losses, Infosys Technologies - which holds the largest number of H1-B visas among all the Indian IT services companies - has started reducing the number as a part of the company's policy to reduce its 'overseas bench' strength.

The number of H1-B visa holders in the company, which was 8,700 as of December 31, 2008, came down to 8,200 as of March 31, 2009, according to information available with Business Standard.

This number is expected to come down further by another 500 at the end of the first quarter of FY10, as the company is further rationalising its workforce in the US by inducting more locals (Americans) in its rolls, a source close to the development said.

However, even as the company is reducing its 'overseas bench', it has simultaneously committed to add another 1,000 American citizens to its rolls in the next 12-18 months, which will take the total number of US citizens on its rolls to 1,800.

However, Infosys member of the Board and Head of HR, T V Mohandas Pai, insisted that the current reduction in the number of H1-B visa holders had nothing to do with the 'reduction in the overseas bench'.

"The number of people (H1-B visa holders) go up and down based on business requirements. When the business is down due to the recession, we don't need so many people (in the US)," he said.

He said the company had been hiring in the US for the past three years and it's part of the company's strategic plan to hire more locally.

"It has nothing to do with Obama's announcement and the US government's proposals to lower the H1-B visa limit," he added.

According to the latest update from the US Citizenship and Immigration Services, as against an available upper cap of 65,000 as mandated by the US Congress, only about 45,000 H1-B visa applications were received till May 19 this year.

Other than the global recession, experts say the fact that each H1-B visa costs about $3,000-5,000 per applicant is reason enough for companies not to invest so much on obtaining such visas.

Of late, most India companies have increased their uptake of local talent in the US. Wipro has already announced its intention to hire over 750 US workers for its newly opened centre in Atlanta.

IT major TCS is also focussing on more US citizens in its workforce, according the company's COO N Chandrasekharan.

"It's important to create critical mass and have a local delivery capability to service onsite clients. If we do this from India, it will be quite costly," he said.
Source: rediff.com

Saturday, May 23, 2009

, ,

Infosys cuts H1-B visas to 'reduce overseas bench'

Even as the strong anti-outsourcing lobby in the US is forcing US lawmakers to take a relook at their H1-B visa strategy amid huge job losses, Infosys Technologies – which holds the largest number of H1-B visas among all the Indian IT services companies – has started reducing the number as a part of the company’s policy to reduce its ‘overseas bench’ strength.

The number of H1-B visa holders in the company, which was 8,700 as of December 31, 2008, came down to 8,200 as of March 31, 2009, according to information available with Business Standard. This number is expected to come down further by another 500 at the end of the first quarter of FY10, as the company is further rationalising its workforce in the US by inducting more locals (Americans) in its rolls, a source close to the development said.

However, even as the company is reducing its ‘overseas bench’, it has simultaneously committed to add another 1,000 American citizens to its rolls in the next 12-18 months, which will take the total number of US citizens on its rolls to 1,800.

However, Infosys member of the Board and Head of HR, T V Mohandas Pai, insisted that the current reduction in the number of H1-B visa holders had nothing to do with the ‘reduction in the overseas bench’.

“The number of people (H1-B visa holders) go up and down based on business requirements. When the business is down due to the recession, we don’t need so many people (in the US),” he said.

He said the company had been hiring in the US for the past three years and it’s part of the company’s strategic plan to hire more locally.

“It has nothing to do with Obama’s announcement and the US government’s proposals to lower the H1-B visa limit,” he added.

According to the latest update from the US Citizenship and Immigration Services, as against an available upper cap of 65,000 as mandated by the US Congress, only about 45,000 H1-B visa applications were received till May 19 this year. Other than the global recession, experts say the fact that each H1-B visa costs about $3,000-5,000 per applicant is reason enough for companies not to invest so much on obtaining such visas.

Of late, most India companies have increased their uptake of local talent in the US. Wipro has already announced its intention to hire over 750 US workers for its newly opened centre in Atlanta.

IT major TCS is also focussing on more US citizens in its workforce, according the company’s COO N Chandrasekharan.

“It’s important to create critical mass and have a local delivery capability to service onsite clients. If we do this from India, it will be quite costly,” he said.

Friday, May 22, 2009

, ,

Infosys to add 1,000 more US citizens to its rolls

Indian software firm Infosys plans to hire about 1,000 people in the US in the next 12 to 18 months amid a gloomy job market. In an interview with the local media, Infosys Chief Executive Kris Gopalakrishnan, who is currently in Seattle for Microsoft's CEO Summit this week, said that the company plans to add more than 100 new employees as part of a big US expansion in anticipation of growth resuming in 2010.

Altogether, Infosys plans to hire about 1,000 people across the US over the next 12 to 18 months, he said. Already, 14,000 of the company's 1,04,000 employees are based in the US.

"We believe business will be there if we add capabilities, more services and solutions to our portfolio and increase the business volume with the existing customers -- that's how we see growth coming to our business," Gopalakrishnan said.

Regarding the recovery in the Indian economy, he said that it is in, "Very early stages." Gopalakrishna said, "I hope it is sustained and picks up. The difference with the US is that it has gone from 2-3 per cent in GDP growth to approximately zero, about a 3 per cent decline.”

“India has also declined 3 per cent -- it's gone from 8 to 9 per cent growth to 5 per cent to 6 per cent. On the positive side it's still 5 to 6 per cent growth, but the decline is similar, actually."

Hoping the gathered executives will have insights into what fundamental changes will result from the downturn, so they can distinguish between the greed that marked the financial meltdown and innovations that were happening, he said.

"If you look at the Internet boom, everybody jumped in, many of those companies got funded, lots of money was poured in," he said. "Of course many of those companies failed, lots of money was lost but some good things happened -- some companies emerged very strong, became the leaders in that space..."

Gopalakrishnan clearly sees the dangers in industry consolidation and in changes in the nature of outsourcing, with more businesses taking the same tack as they have with their internal IT organisations by looking at business process applicability rather than discrete technical capability.

Infosys seems well-oriented to adapt to this new world since Gopalakrishnan identifies their value proposition as a strong knowledge of customer businesses.

Thursday, May 21, 2009

USCIS updates count of H-1B petition filings, continues to accept petitions

US Citizenship and Immigration Services (USCIS) announced April 27, 2009, that it has only receive about 45,000 of the 65,000 H-1B non-immigrant visa petitions needed to meet the fiscal year (FY) 2010 cap (beginning October 1, 2009). This represents approximately 3,000 additional filings since USCIS' April 8 announcement and means that new H-1B petitions may still be filed. 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. USCIS began accepting petitions on April 1.

The agency has received approximately 20,000 H1-B petitions for aliens eligible for the advanced degree exemption. However, USCIS continues 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.

Once the relevant H-1B cap has been met, USCIS will issue an update to advise the public that, as of a certain date (the "final receipt date"), the respective FY 2010 H-1B caps have been met. The final receipt date will be based on the date USCIS physically receives the petition, not the date that the petition is postmarked. The date or dates USCIS informs the public that the respective caps have been reached may differ from the actual final receipt date. To ensure a fair system, USCIS may randomly select the number of petitions required to reach the numerical limit from the petitions received as of the final receipt date (this would be done subject to a lottery). USCIS will reject cap subject petitions that are not selected, as well as those received after the final receipt date.

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. USCIS will provide regular updates on the processing of FY 2010 H-1B petitions.

Petitions filed on behalf of current H-1B workers who have been counted previously against the cap do not count towards the congressionally mandated H-1B cap. Accordingly, USCIS will continue to process petitions filed to:

  • Extend the amount of time a current H-1B worker may remain in the United States
  • Change the terms of employment for current H-1B workers
  • Allow current H-1B workers to change employers
  • Allow current H-1B workers to work concurrently in a second H-1B position
  • Updates on the cap count can be found on the USCIS' website: http://www.uscis.gov/h-1b_count.

H1-B visas are given to US companies seeking to hire nonimmigrant aliens in specialty occupations of distinguished merit and ability when such workers are in limited quantities in the United States. A specialty occupation requires the theoretical and practical application of a body of specialized knowledge and a bachelor's degree or the equivalent in the specific specialty (e.g., sciences, medicine and health care, education, biotechnology and business specialties, etc). The numerical limitation on H-1B petitions for fiscal year 2010 is 65,000. Additionally, the first 20,000 H-1B petitions filed on behalf of aliens who have earned a US masters' degree or higher are exempt from the fiscal year cap. Holders of these visas can stay in the United States for up to six years.

20,000 H-1B visas still left

Once the most sought after H-1B American work visa is still having nearly 20,000 slots open seven weeks after the US Citizenship and Immigration Services (USCIS) started receiving applications for the financial year 2010 beginning October this year.

The USCIS yesterday said it has so far received approximately 45,500 H-1B petitions counting toward the Congressionally-mandated 65,000 cap. As such, the USCIS would continue to accept petitions subject to till the cap is reached.

This is in contrast of the previous few years when the USCIS had to resort to computerised draw of lots as it received petitions outnumbering several times more than the Congressional mandated cap of 65,000 within the first few days after it started receiving H-1B applications.

USCIS said it has received approximately 20,000 petitions for the advanced degrees category. However, it would continue to accept advanced degree petitions since experience has shown that not all petitions received are approvable, the USCIS said in a statement.

Congress mandated that the first 20,000 of these types of petitions are exempt from any fiscal year cap on available H-1B visas.

Wednesday, May 20, 2009

, , ,

Obama must stop neglecting India: Forbes

With India and America sharing both principles and interests, a leading US columnist wants President Barack Obama to stop "neglecting" India and visit India soon saying it would pay "very rich - and very reliable -dividends."

"What is significant is that the convergence of India and America rests just as much on shared principles as it does on shared interests," writes Tunku Varadarajan, a professor at New York University and executive editor for opinions at Forbes magazine.

"As Pakistan tears itself apart, America needs India more than ever. The moment, therefore, is Obama's to seize," he said citing an Asia Society report emphasising, "India matters to virtually every major foreign policy issue that will confront the United States in the years ahead."

"As an Indian who has made his home in the US, I say to Barack Obama: Don't neglect India. Go to India, and go there soon. Or if you can't leave town, invite (Prime Minister) Manmohan Singh to stop by," Varadarajan said. "This is an investment of your time that will pay very rich - and very reliable - dividends."

"Obama's handling of the financial crisis, his stewardship of America's foreign and security policy has been surprisingly deft. But the one part of America's foreign policy that Obama can be argued to have flubbed so far is its relations with India," he writes suggesting since taking office in January, Obama has paid India scant attention.

There are two ways to read Obama's neglect of India. The first reading - one that gives him the benefit of the doubt that he's not keen, by disposition, on India - is that he was maintaining a prudent distance from New Delhi as India went to the polls, he said.

The second, darker reading of Obama's coolness toward India rests on a sense that the president is punishing the Indian political establishment for its closeness to former President George W. Bush.

"Yet if there is any pique at all in Obama's approach to India, he needs to get over it fast," Varadarajan said. "The alliance is too valuable to jeopardise. In Hillary Clinton, the president has a secretary of state with a real feel for India."