Information technology and outsourcing company Cognizant Technology Solutions Corp. said Tuesday its second-quarter profit and sales grew as companies turned to its services to save money.
The company earned $141.3 million, or 47 cents per share, up 36 percent from $103.9 million, or 35 cents per share, in the same period a year earlier.
Revenue rose 13 percent to $776.6 million from $685.4 million. Analysts, on average, were expecting a profit of 37 cents per share on sales of $762 million, according to a poll by Thomson Reuters.
"Large corporations are seeking us out to streamline global delivery, rationalize costs and create new business capabilities," said Francisco D'Souza, president and CEO, in a statement. The company expects third-quarter earnings of 40 cents per share on sales of at least $800 million.
Showing posts with label CTS. Show all posts
Showing posts with label CTS. Show all posts
Wednesday, August 5, 2009
Tuesday, August 4, 2009
cognizant, CTS, H1-B, NRIs
H1B Cap : July 24, 2009 Update
The H1B cap count remains unchanged. The USCIS issued a count of the cases received as of July 24, 2009, which was identical to the previous one. There have been 44,900 regular cap cases and 20,000 advanced-degree cap cases filed for the fiscal year 2010 limits. As of this writing, the USCIS continues to accept cases under both the regular and advanced-degree caps.
Wednesday, July 29, 2009
cognizant, CTS, H1-B, NRIs
Analysis: The next H-1B fight begins by Labor Day
Source: ComputerWorld
Sen. Charles Schumer (D-N.Y.) plans to introduce a comprehensive immigration reform bill by Labor Day that seems certain to include a way to increase the H-1B cap.
Sen. Charles Schumer (D-N.Y.) plans to introduce a comprehensive immigration reform bill by Labor Day that seems certain to include a way to increase the H-1B cap. By introducing the bill in the worse possible economic climate, and then citing Labor Day as his deadline for introducing it, you could almost argue that Schumer is egging on his opponents. But that's not new for him. Among the people he has enlisted to help him is Federal Reserve Chairman Alan Greenspan, who testified this year at an immigration committee hearing that the cap protects U.S. workers from global competition, creating a "privileged elite."
Schumer's view follows naturally from his unabashed support of the H-1B visa program and his belief that foreign workers are critical to U.S. economic success. And as head of the Senate Subcommittee on Immigration, Refugees and Border Security, Schumer is in a position to make changes.
Schumer outlined his plans in an interview with Associated Press last week; the bill is still being drafted.
The Senate has had no problem approving increases in the H-1B cap in the past. The Comprehensive Immigration Reform Act of 2006, for instance, proposed raising the cap on H-1B visas to 115,000 and included a market-cap provision that allowed the the number of visas to grow by 20% a year if the prior cap was reached.
The cap is now set at 85,000, which includes 20,000 that are set aside for people who earn masters degree.
This time around, Schumer may take a different approach on high-skilled immigration.
One proposal that may get traction in Congress would create an independent commission to manage employment-based visas. The commission would determine whether there are labor shortages and have the authority to make annual adjustments on the cap based on economic need. That idea was pitched by the AFL-CIO in April. Schumer will also have to deal with Sens. Dick Durbin (D-Ill.) and Chuck Grassley (R-Iowa), both of whom are on the immigration subcommittee and have introduced legislation restricting H-1B use to the ire of Indian government and industry groups, in particular. Durbin and Grassley are among the harshest critics of the H-1B visa.
In a speech last month before an immigration policy group, Schumer outlined what he wants to achieve when it comes to high skilled workers.
"We must encourage the world's best and brightest individuals to come to the United States and create new technologies and business that will employ countless American workers, but must discourage businesses from using our immigration laws as a means to obtain temporary and less-expensive foreign labor to replace capable American workers," said Schumer. Schumer also endorsed a report in 2007, Sustaining New York's and the U.S. Global Financial Services Leadership, prepared by McKinsey & Co., that called for increasing access to H-1B visas to help keep the financial services industry competitive. President Barack Obama has appointed a top McKinsey official, Diana Farrell, to serve in his administration as a deputy economic advisor.
Angela Kelly, vice president for immigration policy and advocacy at the Center for American Progress, a Washington-based group that's headed John Podesta, President Clinton's former chief of staff, said an element of any immigration reform bill would have to be its labor protections.
"How do we ensure that by bringing these workers in we're not disadvantaging American workers and how do we invest in our folks for the long haul, so that we've got kids in computer science, math, and engineering programs, which are right now, frankly, dominated by kids who aren't from the U.S. That's the reality and we need to deal with it," she said, in a conference call with reporters.
Sen. Charles Schumer (D-N.Y.) plans to introduce a comprehensive immigration reform bill by Labor Day that seems certain to include a way to increase the H-1B cap.
Sen. Charles Schumer (D-N.Y.) plans to introduce a comprehensive immigration reform bill by Labor Day that seems certain to include a way to increase the H-1B cap. By introducing the bill in the worse possible economic climate, and then citing Labor Day as his deadline for introducing it, you could almost argue that Schumer is egging on his opponents. But that's not new for him. Among the people he has enlisted to help him is Federal Reserve Chairman Alan Greenspan, who testified this year at an immigration committee hearing that the cap protects U.S. workers from global competition, creating a "privileged elite."
Schumer's view follows naturally from his unabashed support of the H-1B visa program and his belief that foreign workers are critical to U.S. economic success. And as head of the Senate Subcommittee on Immigration, Refugees and Border Security, Schumer is in a position to make changes.
Schumer outlined his plans in an interview with Associated Press last week; the bill is still being drafted.
The Senate has had no problem approving increases in the H-1B cap in the past. The Comprehensive Immigration Reform Act of 2006, for instance, proposed raising the cap on H-1B visas to 115,000 and included a market-cap provision that allowed the the number of visas to grow by 20% a year if the prior cap was reached.
The cap is now set at 85,000, which includes 20,000 that are set aside for people who earn masters degree.
This time around, Schumer may take a different approach on high-skilled immigration.
One proposal that may get traction in Congress would create an independent commission to manage employment-based visas. The commission would determine whether there are labor shortages and have the authority to make annual adjustments on the cap based on economic need. That idea was pitched by the AFL-CIO in April. Schumer will also have to deal with Sens. Dick Durbin (D-Ill.) and Chuck Grassley (R-Iowa), both of whom are on the immigration subcommittee and have introduced legislation restricting H-1B use to the ire of Indian government and industry groups, in particular. Durbin and Grassley are among the harshest critics of the H-1B visa.
In a speech last month before an immigration policy group, Schumer outlined what he wants to achieve when it comes to high skilled workers.
"We must encourage the world's best and brightest individuals to come to the United States and create new technologies and business that will employ countless American workers, but must discourage businesses from using our immigration laws as a means to obtain temporary and less-expensive foreign labor to replace capable American workers," said Schumer. Schumer also endorsed a report in 2007, Sustaining New York's and the U.S. Global Financial Services Leadership, prepared by McKinsey & Co., that called for increasing access to H-1B visas to help keep the financial services industry competitive. President Barack Obama has appointed a top McKinsey official, Diana Farrell, to serve in his administration as a deputy economic advisor.
Angela Kelly, vice president for immigration policy and advocacy at the Center for American Progress, a Washington-based group that's headed John Podesta, President Clinton's former chief of staff, said an element of any immigration reform bill would have to be its labor protections.
"How do we ensure that by bringing these workers in we're not disadvantaging American workers and how do we invest in our folks for the long haul, so that we've got kids in computer science, math, and engineering programs, which are right now, frankly, dominated by kids who aren't from the U.S. That's the reality and we need to deal with it," she said, in a conference call with reporters.
Tuesday, July 28, 2009
cognizant, CTS, H1-B, NRIs
Lured by the prospect of climbing to the top of his field, New Delhi native Swaroop Ganguly came to the US 10 years ago and earned a PhD in electrical and computer engineering from the University of Texas at Austin in 2005. He became an expert in an emerging technology called spintronics, used to power semiconductors, and worked at several chip companies, including Freescale Semiconductor. But Ganguly, now 32, is moving back to India this summer.
Although he has been doing postdoctoral work at the University of Texas, he figures his prospects for research and professional development are probably better in his home country. "I feel quite excited about going back," he says.
Ganguly has already accepted a job as a professor of electrical engineering at the Indian Institute of Technology, Bombay. The position will pay a fraction of the salary he had been earning in the private sector—about $15,000 compared with $100,000—but it will offer considerably more job security and the freedom to do the exploratory research he wants to do. "The real lure of being in the US is to do really innovative work, but the space for that seems to be shrinking," he says. "The Indian government is putting a huge amount of funding into science and technology, so even if they can't pay high salaries, it's an attractive prospect."
Ganguly is one of a number of highly skilled immigrants preparing to leave the US as the nation's economy slows. With the US unemployment rate approaching double digits, job opportunities are diminishing and calls to restrict immigration have gotten louder. Those who favor tightening the rules argue that US citizens should get first priority for jobs.
A Blow to Prospects for Economic Recovery
But the issue is tricky when it comes to the most educated and skilled immigrants—people like Ganguly. When well-paid individuals leave the country, that cuts into already depleted tax revenues for state and local governments. The departure of top talent in technology and science may also undercut the prospects for a recovery in the US, many economists say. These immigrants often start companies and come up with technological breakthroughs, creating new job opportunities for all.
"We benefit from a flow of really smart people coming here to work in our companies and start new ones," says David Hart, a professor of public policy at George Mason University in Arlington, Va., who co-authored a study on immigrant entrepreneurship released this month. "It's important that the US remain a magnet for people who fuel innovation and growth."
The Obama Administration has said it will push for comprehensive immigration reform later this year, but it's unclear if any legislation will pass or how it would affect skilled immigrants. One unresolved issue is how to define a "skilled" immigrant. While many politicians would support policies to attract the most educated and highly paid, there is more controversy over foreign workers who come into the US on H-1B visas, which require only a bachelor's degree and, in many cases, modest salaries. Senator Charles Schumer (D-N.Y.), chairman of the Senate immigration subcommittee, said in June that US policy will aim to "encourage the world's best and brightest individuals to come to the US and create the new technologies and businesses...but must discourage businesses from using our immigration laws as a means to obtain temporary and less expensive foreign labour."
Other Lands of Opportunity: China and India
Advocates for skilled immigrants emphasise the value they create and warn against developing overly restrictive policies. Dr. Jan Vilcek, a professor of microbiology at New York University School of Medicine, defected from Czechoslovakia in 1964 and is now renowned in his field for treatments he developed for chronic illnesses such as Crohn's disease. He co-founded a New York-based nonprofit called the Vilcek Foundation to enhance the public profile of exceptional immigrants. "Foreign-born entrepreneurs and scientists are a tremendous asset to the US economy," Vilcek says. "It is tragic that bureaucratic obstacles are preventing more talented and motivated people from helping to get us out of the economic slump."
For now, economic woes—and to a lesser extent, immigration policies—are the most acute problem driving departures from the US A study by Duke University professor and Harvard researcher Vivek Wadhwa, for example, found that among Chinese nationals who emigrated to the US and later returned home, 72% said they thought professional opportunities were better in China. Among Indians who returned home, 56% said the same of their country. Wadhwa estimates that as many as 200,000 skilled workers from India and China will go home over the next five years, compared with roughly 100,000 over the past 20 years.
"We're in a recession, and there is enough good talent now [in the US], but long term, it will hurt like you won't believe," says Wadhwa, who is also a BusinessWeek.com columnist. "Losing critical talent means arming the US's competition. The next Google (GOOG), Microsoft (MSFT), or Apple (AAPL) could be launched in Shanghai or Bangalore."
Green Card Applicants Have a Long Wait
Kapil, a 33-year-old software consultant for IBM (IBM) in Silicon Valley, shares Vilcek's frustration. (Kapil asked that his last name not be used out of concern for his job.) He joined IBM in 2001 with the hope of gaining permanent residency in the US so he could ultimately start his own company. IBM filed an application for his green card for permanent residence in 2004, and he has yet to receive it. Due to limits that allow for just 9,800 green cards per year per country, the wait for people from India and China can be up to 10 years. Kapil estimates that his five-year wait could stretch into 7 or 10. In the meantime, he remains on an H-1B visa tied to IBM, where he must keep the same position to remain in the green card queue. He's earning six figures now, he says, but suspects he could earn more if he had the freedom to change jobs. "I'm not allowed to advance, and it's really frustrating," says Kapil. "At this point, I'm losing my patience."
Kapil is eager to found a startup. He has developed the technology for an online job-search engine that taps into social networks such as Twitter, Facebook, and LinkedIn. He says he is considering launching it from India. "Most likely, I am heading back," he says. "In a way, I feel cheated. I've contributed, paid taxes, and even picked up a California accent. But it's not enough."
Arun Kumar, 30, is also in the US on an H-1B visa and is considering moving to Canada. Kumar, who lives just north of Philadelphia, works for a US bank and is helping to develop a startup within the company. His employer, the name of which he asked not be used, put in his application for a green card last year. Kumar realises that it could take years for his application to move through the queue, and he's growing restless to start his own business. He has the capital to launch his product, an educational tool to help sixth- to eighth-graders learn math and science. But he doesn't want to do so in the US because assuming a new job or even changing titles within his own company would nullify his existing green card application. Kumar and his wife are now considering moving to Toronto, where they could more quickly become permanent residents.
"I feel restricted here," says Kumar. "I understand the US has a responsibility to its citizens, and I understand its dilemma. But the country would be better off if it could isolate and identify skilled workers who want to come here and build things and welcome them in."
Source: BusinessWeek
Why Skilled Immigrants Are Leaving the U.S.: BusinessWeek
-Other Lands of Opportunity: China and India
-Green Card Applicants Have a Long Wait
-New research shows that highly skilled workers are returning home for brighter career prospects and a better quality of life.
Although he has been doing postdoctoral work at the University of Texas, he figures his prospects for research and professional development are probably better in his home country. "I feel quite excited about going back," he says.
Ganguly has already accepted a job as a professor of electrical engineering at the Indian Institute of Technology, Bombay. The position will pay a fraction of the salary he had been earning in the private sector—about $15,000 compared with $100,000—but it will offer considerably more job security and the freedom to do the exploratory research he wants to do. "The real lure of being in the US is to do really innovative work, but the space for that seems to be shrinking," he says. "The Indian government is putting a huge amount of funding into science and technology, so even if they can't pay high salaries, it's an attractive prospect."
Ganguly is one of a number of highly skilled immigrants preparing to leave the US as the nation's economy slows. With the US unemployment rate approaching double digits, job opportunities are diminishing and calls to restrict immigration have gotten louder. Those who favor tightening the rules argue that US citizens should get first priority for jobs.
A Blow to Prospects for Economic Recovery
But the issue is tricky when it comes to the most educated and skilled immigrants—people like Ganguly. When well-paid individuals leave the country, that cuts into already depleted tax revenues for state and local governments. The departure of top talent in technology and science may also undercut the prospects for a recovery in the US, many economists say. These immigrants often start companies and come up with technological breakthroughs, creating new job opportunities for all.
"We benefit from a flow of really smart people coming here to work in our companies and start new ones," says David Hart, a professor of public policy at George Mason University in Arlington, Va., who co-authored a study on immigrant entrepreneurship released this month. "It's important that the US remain a magnet for people who fuel innovation and growth."
The Obama Administration has said it will push for comprehensive immigration reform later this year, but it's unclear if any legislation will pass or how it would affect skilled immigrants. One unresolved issue is how to define a "skilled" immigrant. While many politicians would support policies to attract the most educated and highly paid, there is more controversy over foreign workers who come into the US on H-1B visas, which require only a bachelor's degree and, in many cases, modest salaries. Senator Charles Schumer (D-N.Y.), chairman of the Senate immigration subcommittee, said in June that US policy will aim to "encourage the world's best and brightest individuals to come to the US and create the new technologies and businesses...but must discourage businesses from using our immigration laws as a means to obtain temporary and less expensive foreign labour."
Other Lands of Opportunity: China and India
Advocates for skilled immigrants emphasise the value they create and warn against developing overly restrictive policies. Dr. Jan Vilcek, a professor of microbiology at New York University School of Medicine, defected from Czechoslovakia in 1964 and is now renowned in his field for treatments he developed for chronic illnesses such as Crohn's disease. He co-founded a New York-based nonprofit called the Vilcek Foundation to enhance the public profile of exceptional immigrants. "Foreign-born entrepreneurs and scientists are a tremendous asset to the US economy," Vilcek says. "It is tragic that bureaucratic obstacles are preventing more talented and motivated people from helping to get us out of the economic slump."
For now, economic woes—and to a lesser extent, immigration policies—are the most acute problem driving departures from the US A study by Duke University professor and Harvard researcher Vivek Wadhwa, for example, found that among Chinese nationals who emigrated to the US and later returned home, 72% said they thought professional opportunities were better in China. Among Indians who returned home, 56% said the same of their country. Wadhwa estimates that as many as 200,000 skilled workers from India and China will go home over the next five years, compared with roughly 100,000 over the past 20 years.
"We're in a recession, and there is enough good talent now [in the US], but long term, it will hurt like you won't believe," says Wadhwa, who is also a BusinessWeek.com columnist. "Losing critical talent means arming the US's competition. The next Google (GOOG), Microsoft (MSFT), or Apple (AAPL) could be launched in Shanghai or Bangalore."
Green Card Applicants Have a Long Wait
Kapil, a 33-year-old software consultant for IBM (IBM) in Silicon Valley, shares Vilcek's frustration. (Kapil asked that his last name not be used out of concern for his job.) He joined IBM in 2001 with the hope of gaining permanent residency in the US so he could ultimately start his own company. IBM filed an application for his green card for permanent residence in 2004, and he has yet to receive it. Due to limits that allow for just 9,800 green cards per year per country, the wait for people from India and China can be up to 10 years. Kapil estimates that his five-year wait could stretch into 7 or 10. In the meantime, he remains on an H-1B visa tied to IBM, where he must keep the same position to remain in the green card queue. He's earning six figures now, he says, but suspects he could earn more if he had the freedom to change jobs. "I'm not allowed to advance, and it's really frustrating," says Kapil. "At this point, I'm losing my patience."
Kapil is eager to found a startup. He has developed the technology for an online job-search engine that taps into social networks such as Twitter, Facebook, and LinkedIn. He says he is considering launching it from India. "Most likely, I am heading back," he says. "In a way, I feel cheated. I've contributed, paid taxes, and even picked up a California accent. But it's not enough."
Arun Kumar, 30, is also in the US on an H-1B visa and is considering moving to Canada. Kumar, who lives just north of Philadelphia, works for a US bank and is helping to develop a startup within the company. His employer, the name of which he asked not be used, put in his application for a green card last year. Kumar realises that it could take years for his application to move through the queue, and he's growing restless to start his own business. He has the capital to launch his product, an educational tool to help sixth- to eighth-graders learn math and science. But he doesn't want to do so in the US because assuming a new job or even changing titles within his own company would nullify his existing green card application. Kumar and his wife are now considering moving to Toronto, where they could more quickly become permanent residents.
"I feel restricted here," says Kumar. "I understand the US has a responsibility to its citizens, and I understand its dilemma. But the country would be better off if it could isolate and identify skilled workers who want to come here and build things and welcome them in."
Source: BusinessWeek
Monday, July 20, 2009
cognizant, CTS, H1-B, TCS
TCS makes no H1B visa application this fiscal
Tata Consultancy Services has not filed for a single H1B visa this year mainly due to its focus on shifting more work to low-cost destinations such as India and China.
Moreover, the company already has around 18,000 employees with valid H1B visas, both in India and overseas, said Mr Ajoy Mukherjee, Vice-President and Head Global Human Resources.
TCS relocated over 1,000 of its overseas staff during the quarter ended June 30 to increase offshoring revenues. The move had a positive impact of about 95 basis points on the company’s margins.
According to him, bringing back staff to India is beneficial for TCS, its clients and its employees. “If you shift work offshore, the customer’s overall costs reduce. It is advantageous for TCS because margins are obviously higher when you deliver from an offshore location. For employees too, it is good as they get to work in their home base,” said Mr Mukherjee.
The people who were called back were stationed at its centres in the US, the UK, Europe and Asia-Pacific.
“These are not the sales people but those involved in actual projects and delivery. Instead of doing it from the customer’s location, they would now carry forward from our India location,” he said. TCS feels that there is ‘more scope left’ to move work and people onshore.
Moreover, the company already has around 18,000 employees with valid H1B visas, both in India and overseas, said Mr Ajoy Mukherjee, Vice-President and Head Global Human Resources.
TCS relocated over 1,000 of its overseas staff during the quarter ended June 30 to increase offshoring revenues. The move had a positive impact of about 95 basis points on the company’s margins.
According to him, bringing back staff to India is beneficial for TCS, its clients and its employees. “If you shift work offshore, the customer’s overall costs reduce. It is advantageous for TCS because margins are obviously higher when you deliver from an offshore location. For employees too, it is good as they get to work in their home base,” said Mr Mukherjee.
The people who were called back were stationed at its centres in the US, the UK, Europe and Asia-Pacific.
“These are not the sales people but those involved in actual projects and delivery. Instead of doing it from the customer’s location, they would now carry forward from our India location,” he said. TCS feels that there is ‘more scope left’ to move work and people onshore.
Saturday, July 18, 2009
cognizant, CTS, H1-B
H1B Cap : July 10, 2009 Update
The H1B cap count moved backward slightly, with a count of 44,900 as of July 10, 2009. No explanation was provided for the decrease. Both the advanced-degree and regular caps remain open for FY2010.
Friday, July 17, 2009
CTS
Invensys Signs Cognizant as Software Development Partner
Cognizant, a leading technology, consulting and business process outsourcing services provider, has entered into a strategic global product research and development alliance with Invensys Operations Management (IOM), a global provider of technology systems, solutions and consulting services in the process and manufacturing space.
Cognizant has signed a five-year multi-million dollar contract with IOM, a division of Invensys, to augment and maintain Invensys’ suite of products. As part of the alliance, offers would be made to over 400 IOM professionals to join Cognizant.
The relationship, according to a Cognizant release, would strengthen its presence in the manufacturing segment and further enhance its ability to provide end-to-end services to customers. It would enable Cognizant to expand its base in discrete manufacturing, process manufacturing, energy and utilities, pharmaceutical and consumer goods segments.
IOM Chief Executive Officer and President Sudipta Bhattacharya said manufacturing technology market was at an inflection point as the companies were moving to seamlessly stitch plant floor applications to enterprise applications to act on real-time manufacturing information.
According to Cognizant President and CEO Francisco D’ Souza, the relationship would help both the companies to solidify their leadership positions in the manufacturing space and expand their range of capabilities in engineering services.
Cognizant has signed a five-year multi-million dollar contract with IOM, a division of Invensys, to augment and maintain Invensys’ suite of products. As part of the alliance, offers would be made to over 400 IOM professionals to join Cognizant.
The relationship, according to a Cognizant release, would strengthen its presence in the manufacturing segment and further enhance its ability to provide end-to-end services to customers. It would enable Cognizant to expand its base in discrete manufacturing, process manufacturing, energy and utilities, pharmaceutical and consumer goods segments.
IOM Chief Executive Officer and President Sudipta Bhattacharya said manufacturing technology market was at an inflection point as the companies were moving to seamlessly stitch plant floor applications to enterprise applications to act on real-time manufacturing information.
According to Cognizant President and CEO Francisco D’ Souza, the relationship would help both the companies to solidify their leadership positions in the manufacturing space and expand their range of capabilities in engineering services.
Friday, July 10, 2009
cognizant, CTS, H1-B
H1B Cap : July 3, 2009 Update
The H1B cap count continues to inch forward, with an approximate count of 45,000 as of July 3, 2009. This is a slight increase over the last count. As of this writing, both the advanced-degree and regular caps remain open for FY2010.
Thursday, July 9, 2009
CTS
Cognizant to promote, hike employees' salaries
Will be effective from October this year
Amidst gloom in the IT sector, there is a section that’s smiling- employees of software services firm Cognizant. At a time when other top IT players have frozen promotions, Cognizant seems to have bucked the trend.
The Nasdaq-listed company has sent a mail, stating that it has kicked off the process to promote and hike salaries for employees across levels, which will be effective from October this year.
Cognizant’s president and managing director R Chandrasekaran confirmed the development and attributed the promotions to the company’s better than industry performance.
Despite an economically challenging environment, Cognizant outperformed the industry and grew by 32% in 2008, surging ahead of Nasscom’s estimate of 16-17% for the industry. It has guided to grow by at least 10% for 2009-10, at a time when its peers in the industry say they expect revenues to shrink thanks to lower demand.
“99% of our growth has been organic and we want to recognise people who have contributed towards that. Since we continue to maintain industry-leading growth, this year also we wanted to recognise outstanding contribution from our associates and that’s the reason for the announcement on promotions,” Mr Chandrasekaran said.
A performance review process has already begun to select employees eligible for promotion. ET has a copy of the e-mail, which was sent out to the company’s 63,700 employees on Tuesday.
The opening lines of the mail reads, “We are pleased to announce the initiation of the next round of promotions, which will be effective from October 1, 2009. It wasn’t long ago that we shared the results of our industry-leading performance with you by way of good incentives for the year 2008. With this round of promotions, we are set to buck the trend, yet again.” The incentive being referred to is the company’s bonus payouts to its employees some months back.
The mail further says that since the headcount growth has slowed down in recent year, the number of promotions will also be lower than the past. “The promotions will happen across the board. We don’t want to be segregating people within the company, so this will be applicable at every level. Those who are moving up as part of promotions, will see a raise in their salaries, but its too soon to determine a range,” Mr Chandrasekaran added.
But sources within the company said the increment range could be anywhere between 7-10%. Also, there will be no differentiation on how employees would be assessed onsite and offshore. Cognizant has a 75:25 offshore-onsite ratio.
News of imminent promotion has spread cheer on Cognizant’s campus but the question is whether the over two million IT/BPO employees in India can take this as a sign and expect something similar. Probably not, because Cognizant stated that it has rewarded employees not because it sees better demand in the market place but because it has been growing faster than the industry.
“Given that we have been doing reasonably well, we want to pass on the benefit to our associates. There is nothing different that we are seeing in the market than what we saw three or four months ago,” Mr Chandrasekaran said.
Source: ETNow
Amidst gloom in the IT sector, there is a section that’s smiling- employees of software services firm Cognizant. At a time when other top IT players have frozen promotions, Cognizant seems to have bucked the trend.
The Nasdaq-listed company has sent a mail, stating that it has kicked off the process to promote and hike salaries for employees across levels, which will be effective from October this year.
Cognizant’s president and managing director R Chandrasekaran confirmed the development and attributed the promotions to the company’s better than industry performance.
Despite an economically challenging environment, Cognizant outperformed the industry and grew by 32% in 2008, surging ahead of Nasscom’s estimate of 16-17% for the industry. It has guided to grow by at least 10% for 2009-10, at a time when its peers in the industry say they expect revenues to shrink thanks to lower demand.
“99% of our growth has been organic and we want to recognise people who have contributed towards that. Since we continue to maintain industry-leading growth, this year also we wanted to recognise outstanding contribution from our associates and that’s the reason for the announcement on promotions,” Mr Chandrasekaran said.
A performance review process has already begun to select employees eligible for promotion. ET has a copy of the e-mail, which was sent out to the company’s 63,700 employees on Tuesday.
The opening lines of the mail reads, “We are pleased to announce the initiation of the next round of promotions, which will be effective from October 1, 2009. It wasn’t long ago that we shared the results of our industry-leading performance with you by way of good incentives for the year 2008. With this round of promotions, we are set to buck the trend, yet again.” The incentive being referred to is the company’s bonus payouts to its employees some months back.
The mail further says that since the headcount growth has slowed down in recent year, the number of promotions will also be lower than the past. “The promotions will happen across the board. We don’t want to be segregating people within the company, so this will be applicable at every level. Those who are moving up as part of promotions, will see a raise in their salaries, but its too soon to determine a range,” Mr Chandrasekaran added.
But sources within the company said the increment range could be anywhere between 7-10%. Also, there will be no differentiation on how employees would be assessed onsite and offshore. Cognizant has a 75:25 offshore-onsite ratio.
News of imminent promotion has spread cheer on Cognizant’s campus but the question is whether the over two million IT/BPO employees in India can take this as a sign and expect something similar. Probably not, because Cognizant stated that it has rewarded employees not because it sees better demand in the market place but because it has been growing faster than the industry.
“Given that we have been doing reasonably well, we want to pass on the benefit to our associates. There is nothing different that we are seeing in the market than what we saw three or four months ago,” Mr Chandrasekaran said.
Source: ETNow
Saturday, July 4, 2009
Cost cutting, CTS, Infosys, TCS, Wipro
IT firms gear up to strong background checks
IT firms gear up to verify their employees’ backgrounds more strictly in order to check fraudulent claims of tenure, designations and degrees.
Verifying backgrounds of employees, which major IT companies like Tata Consultancy Services (TCS), Infosys Technologies, Wipro and Cognizant have been doing for 5-6 years, is becoming more stringent after the terror attacks throughout the country.
It’s being done with good reason. Pre-screening players allege that ‘fake degrees’ can be obtained and verified in India with ease. Consider this. Of all the discrepancies recorded in the first quarter (Q1) of January 2009, about 71 per cent are related to past employment data, according to a pre-screening firm, First Advantage. About 20 per cent are related to past educational data; and 4 out of 5 educational discrepancies relate to cases of fake documentation.
Incorrect tenure (35 per cent), inflated designations (11 per cent), false employment information (39 per cent), inflated compensation (3 per cent), suppression of negative supervisor/HR feedback (11 per cent), and criminal discrepancies (North-25.8 per cent, South-22.6 per cent, West-38.7 pre cent & East-12.9 per cent) comprise the ailments that plague companies, according to Ashish Dehade, managing director (West Asia), First Advantage.
IT firms agree with these statistics. Wipro, for instance, hires close to 10,000 employees every year. “We have been using multiple methods over the past few years to verify the claims of employees. Fraudulent certificates abound. We work with both an in-house team and have an assessment by the external HR agencies. Final interviews are always conducted in person (earlier telephonic and video conferencing was permitted),” explains Arvind J, head — Talent Acquisition, Wipro Infotech.
Wipro has blacklisted close to 300 companies which issue false experience certificates (employees pay to get such endorsements). Moreover, it has “placed under a scanner around 150 colleges and institutes which are known to be of dubious credentials.” It has to take such stern measures since the company has at least 600,000 active resumes, and validates around 1,000-1,500 resumes every week.
Wipro’s not a lone case. Most of the other IT majors perform a similar exercise. Moreover, while they may compete for IT services deals and poach each other’s employees too, they collaborate (but do not go on record) when it comes to sharing the databases of fraudulent companies and errant colleges and institutes.
TCS, for instance, hires nearly 30,000 employees annually. “Background verification is a very good way of identifying the genuiness of candidates,” avers K Ganeshan, VP (HR), TCS. The IT major also has an accreditation methodology and has “accredited around 1,300 campuses and close to 315 colleges.” The plan appears to be working for the company. Last year, for instance, of the 6,000 lateral (experienced) hires, it detected only around 230 fraudulent cases. “And the number is dwindling with every passing year due to our strong audit process,” says Ganeshan.
Mohandas Pai, director (Human Resources), Infosys Technologies, concurs with this view. The company implemented this “vigorous process nearly six years back, and employees are wary of our strategies. The crafty ones stay away since they know they will be identified and penalised,” cautions Pai.
Nasdaq-listed Cognizant, too, has a stringent due diligence processes and practices in place for whetting prospective candidates at different levels. “We avail of the services of third-party firms to carry out thorough background checks of prospective as well as inducted employees. This involves processes ranging from cross-checking with the HR function at former employers, to digging out pertinent information from respective colleges, and has been quite effective,” says Bhaskar Das, vice- president, Human Resources, Cognizant. The HR personnel initiate a reference check well before an employee joins the organisation. “In most cases, this process is completed prior to the employee joining us,” adds Das.
Incidentally, Cognizant has over 30,000 of its India-based employees registered as part of software body Nasscom’s National Skills Registry (NSR), among the highest in the industry.
Nasscom had set up the NSR in 2005 — a database of details of the IT Professionals (ITPs) — and currently has around 400,000 employees registered with it. However, employers must ensure that checks are done with the employee’s consent. Ensuring that employees are given proper notice is a very important part of positioning your firm to be able to act at a later date should something go awry with employee records, note HR experts.
After registering the details on the NSR site, IT Professionals (ITPs) need to visit Point Of Service (POS) offices appointed by NSDL Database Management Limited (NDML) for submitting their finger-prints (biometric identification), photograph, signature and fee (if not paid through payment gateway).
“How vigorous the background checks should be depends on the sensitivity of the project,” notes Som Mittal, president, Nasscom. He adds that Nasscom is in the process of combining the information contained in the NSR database and the independent databases of IT companies.
But there’s a problem. While the larger companies may have their act in order, smaller IT-BPO companies will have to depend on the NSR database. It’s here where the challenges lie.
Rohit Mahajan, executive director, KPMG Forensic, acknowledges that background verification of employees is just the “first level of assurance to the client.” He adds, though, that there’s a challenge when the verification process is “defined as a commodity. Had it been perceived as a risk management process, it would have been a better value proposition.”
There’s another hurdle to cross. Pre-employment screening players say there is no centralised public access to police records, which makes a comprehensive nationwide search impossible. One has to identify the correct police station of the area of residence to track a person. If a person has resided at different addresses in the same city, one has to request for separate searches. This is a tedious process.
Finally, the IT sector is way ahead when it comes to background verification. If all sectors are taken into consideration, the revelation is scary. Over 98 per cent of all registered Indian firms (across all sectors) do not conduct any background screening. Inquiries related to fraud get restricted to internal audits in most cases. “Even for the 2 per cent that do,” says Kunwar Vikram Singh, chairman, Central Association of Private Security Industry and The Association of Private Detectives and Investigators, “nearly 80 per cent of the information that is verified by third-party investigators is not reliable.”
Source: BusinessStandard.com
Verifying backgrounds of employees, which major IT companies like Tata Consultancy Services (TCS), Infosys Technologies, Wipro and Cognizant have been doing for 5-6 years, is becoming more stringent after the terror attacks throughout the country.
It’s being done with good reason. Pre-screening players allege that ‘fake degrees’ can be obtained and verified in India with ease. Consider this. Of all the discrepancies recorded in the first quarter (Q1) of January 2009, about 71 per cent are related to past employment data, according to a pre-screening firm, First Advantage. About 20 per cent are related to past educational data; and 4 out of 5 educational discrepancies relate to cases of fake documentation.
Incorrect tenure (35 per cent), inflated designations (11 per cent), false employment information (39 per cent), inflated compensation (3 per cent), suppression of negative supervisor/HR feedback (11 per cent), and criminal discrepancies (North-25.8 per cent, South-22.6 per cent, West-38.7 pre cent & East-12.9 per cent) comprise the ailments that plague companies, according to Ashish Dehade, managing director (West Asia), First Advantage.
IT firms agree with these statistics. Wipro, for instance, hires close to 10,000 employees every year. “We have been using multiple methods over the past few years to verify the claims of employees. Fraudulent certificates abound. We work with both an in-house team and have an assessment by the external HR agencies. Final interviews are always conducted in person (earlier telephonic and video conferencing was permitted),” explains Arvind J, head — Talent Acquisition, Wipro Infotech.
Wipro has blacklisted close to 300 companies which issue false experience certificates (employees pay to get such endorsements). Moreover, it has “placed under a scanner around 150 colleges and institutes which are known to be of dubious credentials.” It has to take such stern measures since the company has at least 600,000 active resumes, and validates around 1,000-1,500 resumes every week.
Wipro’s not a lone case. Most of the other IT majors perform a similar exercise. Moreover, while they may compete for IT services deals and poach each other’s employees too, they collaborate (but do not go on record) when it comes to sharing the databases of fraudulent companies and errant colleges and institutes.
TCS, for instance, hires nearly 30,000 employees annually. “Background verification is a very good way of identifying the genuiness of candidates,” avers K Ganeshan, VP (HR), TCS. The IT major also has an accreditation methodology and has “accredited around 1,300 campuses and close to 315 colleges.” The plan appears to be working for the company. Last year, for instance, of the 6,000 lateral (experienced) hires, it detected only around 230 fraudulent cases. “And the number is dwindling with every passing year due to our strong audit process,” says Ganeshan.
Mohandas Pai, director (Human Resources), Infosys Technologies, concurs with this view. The company implemented this “vigorous process nearly six years back, and employees are wary of our strategies. The crafty ones stay away since they know they will be identified and penalised,” cautions Pai.
Nasdaq-listed Cognizant, too, has a stringent due diligence processes and practices in place for whetting prospective candidates at different levels. “We avail of the services of third-party firms to carry out thorough background checks of prospective as well as inducted employees. This involves processes ranging from cross-checking with the HR function at former employers, to digging out pertinent information from respective colleges, and has been quite effective,” says Bhaskar Das, vice- president, Human Resources, Cognizant. The HR personnel initiate a reference check well before an employee joins the organisation. “In most cases, this process is completed prior to the employee joining us,” adds Das.
Incidentally, Cognizant has over 30,000 of its India-based employees registered as part of software body Nasscom’s National Skills Registry (NSR), among the highest in the industry.
Nasscom had set up the NSR in 2005 — a database of details of the IT Professionals (ITPs) — and currently has around 400,000 employees registered with it. However, employers must ensure that checks are done with the employee’s consent. Ensuring that employees are given proper notice is a very important part of positioning your firm to be able to act at a later date should something go awry with employee records, note HR experts.
After registering the details on the NSR site, IT Professionals (ITPs) need to visit Point Of Service (POS) offices appointed by NSDL Database Management Limited (NDML) for submitting their finger-prints (biometric identification), photograph, signature and fee (if not paid through payment gateway).
“How vigorous the background checks should be depends on the sensitivity of the project,” notes Som Mittal, president, Nasscom. He adds that Nasscom is in the process of combining the information contained in the NSR database and the independent databases of IT companies.
But there’s a problem. While the larger companies may have their act in order, smaller IT-BPO companies will have to depend on the NSR database. It’s here where the challenges lie.
Rohit Mahajan, executive director, KPMG Forensic, acknowledges that background verification of employees is just the “first level of assurance to the client.” He adds, though, that there’s a challenge when the verification process is “defined as a commodity. Had it been perceived as a risk management process, it would have been a better value proposition.”
There’s another hurdle to cross. Pre-employment screening players say there is no centralised public access to police records, which makes a comprehensive nationwide search impossible. One has to identify the correct police station of the area of residence to track a person. If a person has resided at different addresses in the same city, one has to request for separate searches. This is a tedious process.
Finally, the IT sector is way ahead when it comes to background verification. If all sectors are taken into consideration, the revelation is scary. Over 98 per cent of all registered Indian firms (across all sectors) do not conduct any background screening. Inquiries related to fraud get restricted to internal audits in most cases. “Even for the 2 per cent that do,” says Kunwar Vikram Singh, chairman, Central Association of Private Security Industry and The Association of Private Detectives and Investigators, “nearly 80 per cent of the information that is verified by third-party investigators is not reliable.”
Source: BusinessStandard.com
Thursday, July 2, 2009
cognizant, CTS, H1-B, NRIs
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.
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.
Tuesday, June 30, 2009
CTS
Cognizant big on mobile couponing
Betting on mobile applications as a growth area, IT major Cognizant is developing a new solution for mobile couponing. Mobile couponing is a process of receiving and redeeming merchant disc-ount coupons electronically using a mobile instrument and network instead of conventional paper coupons.
Said R Viswakumar, AVP, global technology officer, Cognizant: “We are exploring this emerging business need and developing a solution by identifying and creating specific technology components.”
The solution would be piloted in Cognizant first and then launched along with merchants, mobile operators, banks and pay-ment companies in a phased manner. The trans-border company has discussed the idea with a few existing clients and the response so far has been encouraging, said Viswakumar.
Researches suggest that mobile phones are fast replacing 300 billion paper coupons issued every year in the US. Brands such as Burger King, Dairy Queen, Victoria’s Secret, Unilever and ShopRite have starting using mobile coupons in various forms.
Said R Viswakumar, AVP, global technology officer, Cognizant: “We are exploring this emerging business need and developing a solution by identifying and creating specific technology components.”
The solution would be piloted in Cognizant first and then launched along with merchants, mobile operators, banks and pay-ment companies in a phased manner. The trans-border company has discussed the idea with a few existing clients and the response so far has been encouraging, said Viswakumar.
Researches suggest that mobile phones are fast replacing 300 billion paper coupons issued every year in the US. Brands such as Burger King, Dairy Queen, Victoria’s Secret, Unilever and ShopRite have starting using mobile coupons in various forms.
Sunday, June 28, 2009
cognizant, CTS, H1-B
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.
Friday, June 26, 2009
CTS, New Deals, TCS
IT majors vie for slice of UBS' offshoring contract
Switzerland-based banking and wealth management firm UBS is considering outsourcing about 5,000 jobs over the next two years, according to people familiar with its plans. This signifies an opportunity to win new businesses for Indian IT vendors such as Wipro and Infosys Technologies that already work with the Swiss bank.
UBS recently appointed consulting firm McKinsey to advise it on the outsourcing process. The decision to outsource thousands of jobs is in line with the ailing bank's cost-cutting strategy. UBS chief executive Oswald Grubel has already announced 7,500 job cuts across the firm till 2010.
The Swiss bank has accumulated more than $53 billion in writedowns in the global financial crisis and had to receive financial aid from the Swiss government. The bank is an important client for both Wipro and Infosys. While Wipro, India's third-largest software-services firm by revenues, gets over $50 million in annual revenues from UBS, second-ranked Infosys derives about $40-50 million. Apart from these firms, other vendors for UBS include TCS, Polaris, Cognizant and Headstrong.
UBS recently appointed consulting firm McKinsey to advise it on the outsourcing process. The decision to outsource thousands of jobs is in line with the ailing bank's cost-cutting strategy. UBS chief executive Oswald Grubel has already announced 7,500 job cuts across the firm till 2010.
The Swiss bank has accumulated more than $53 billion in writedowns in the global financial crisis and had to receive financial aid from the Swiss government. The bank is an important client for both Wipro and Infosys. While Wipro, India's third-largest software-services firm by revenues, gets over $50 million in annual revenues from UBS, second-ranked Infosys derives about $40-50 million. Apart from these firms, other vendors for UBS include TCS, Polaris, Cognizant and Headstrong.
Thursday, June 25, 2009
CTS
Cognizant launches portal for West Asia
IT services provider Cognizant has developed West Asia’s first online health insurance portal for National Health Insurance company, Daman, the region’s leading health insurance company. The new portal will provide Daman’s 18 lakh customers the convenience of accessing their insurance policies, records, and claims and conducting their health insurance transactions online on a 24X7 basis. The initiative will provide its customers an integrated multi-channel experience and increase efficiencies of the firm to augmenting its bottom line.
“The portal will enable our members to reach us much faster by enabling them to perform their health insurance transactions online, around the clock, from anywhere around the world,” said Michael Bitzer, CEO of Daman. According to R Chandrasekaran, president and managing director (Global Delivery) of Cognizant, the new initiative will set new standards in customer experience in the region’s healthcare industry.
“The portal will enable our members to reach us much faster by enabling them to perform their health insurance transactions online, around the clock, from anywhere around the world,” said Michael Bitzer, CEO of Daman. According to R Chandrasekaran, president and managing director (Global Delivery) of Cognizant, the new initiative will set new standards in customer experience in the region’s healthcare industry.
Tuesday, June 23, 2009
cognizant, CTS, H1-B, NRIs
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.
cognizant, CTS, H1-B, Outsourcing, Wipro
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.
"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.
Tuesday, June 16, 2009
cognizant, CTS, H1-B, Layoffs in USA, NRIs
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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
Thursday, June 4, 2009
CTS
Cognizant ranked 10th largest healthcare IT provider
Global consulting, technology and business process services firm Cognizant today said it has been ranked the 10th largest healthcare IT provider by Healthcare Informatics magazine.
Cognizant’s ranking is based on revenue from the healthcare and life sciences segment, which grew by 36 per cent year-on-year.
Last year, the company was ranked 11th.
"This prestigious ranking among the world’s top healthcare IT providers is a testament to our continual investment in the client relationship and the trust we have built across the industry," Cognizant Healthcare and Life Sciences Practice Senior Vice President and General Manager Krish Venkat said.
Healthcare Informatics is a US-based magazine covering Computer Business.
Healthcare Informatics is a monthly business magazine providing information about IT for the executives and managers of healthcare facilities and organizations of every type.
Cognizant’s ranking is based on revenue from the healthcare and life sciences segment, which grew by 36 per cent year-on-year.
Last year, the company was ranked 11th.
"This prestigious ranking among the world’s top healthcare IT providers is a testament to our continual investment in the client relationship and the trust we have built across the industry," Cognizant Healthcare and Life Sciences Practice Senior Vice President and General Manager Krish Venkat said.
Healthcare Informatics is a US-based magazine covering Computer Business.
Healthcare Informatics is a monthly business magazine providing information about IT for the executives and managers of healthcare facilities and organizations of every type.
Monday, June 1, 2009
cognizant, CTS, H1-B, NRIs, Wipro
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."
"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."
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