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Desperately Seeking Visas

Submitted by Clearing Smoke Bombs, Jan 3, 2008 20:36

It is well known within the tech industry that the primary reason that companies are so much in love with the H-1B and L-1 work visa programs is due to the access to cheaper labor that they provide. Any suggestion otherwise makes people in the tech industry nudge nudge, wink wink, and snicker (probably behind closed doors). But not always behind closed doors... here are some examples of the truth slipping out:

Tata Consultancy Services (TCS) vice president Phiroz Vandrevala (admitting that his company enjoys a competitive advantage because of its extensive use of foreign workers in the United States on H-1B and L-1 visas): "Our wage per employee is 20-25% lesser than US wage for a similar employee," Vandrevala said. "Typically, for a TCS employee with five years experience, the annual cost to the company is $60,000-70,000, while a local American employee might cost $80,000-100,000. This (labour arbitrage) is a fact of doing work onsite. It's a fact that Indian IT companies have an advantage here and there's nothing wrong in that." ("US visas are not a TCS-specific issue," Businessworld (India) magazine, June 2003)
http://www.eurekalert.org/pub_releases/2006-09/i-rss090606.php

Professor Ravi Aron of the USC Marshall School of Business, an authority on offshore outsourcing (quite pro-H1B):
"Can we do without the H1-B program? If you're willing to pay enough, certainly."
http://blogs.computerworld.com/node/6482

Alan Greenspan, March 2007
"If we open up a significant window for skilled workers, that would suppress the skilled-wage level and end the concentration of income."
http://www.boston.com/business/globe/articles/2007/03/14/greenspan_let_more_skilled_immigrants_in

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Other reader comments on this article

Comment	By	Date
GuildY/ ZazonY wrote: "Alan Greenspan, March 2007 "If we open up a significant window for skilled workers, that would suppress the... [MORE]	suppress TOP EARNER wages	Jan 30, 2008 12:57
Asking the Department of Labor to regulate the number of visas and green cards to issue is like asking a... [MORE]	No visa for you	Jan 15, 2008 02:30
GuildY/ ZazonY wrote: "Alan Greenspan, March 2007 "If we open up a significant window for skilled workers, that would suppress the... [MORE]	Little empirical evidence!	Jan 8, 2008 17:57
Kathy Robertson: "When there are millions of Americans out of work due to outsourcing, why do we need to bring... [MORE]	Data	Jan 7, 2008 12:17
S. Kolger wrote: "every other type of white-collar jobs stop getting offshored to India" (1) New H-1Bs account for .07% of... [MORE]	Data	Jan 7, 2008 12:13
The people who are finding rising wages and full employment in the IT sector are definitely moving in different social... [MORE]	S. Kolger	Jan 5, 2008 09:46
Kim Berry (President, Programmers Guild) wrote: " ..." IEEE USA is IEEE's policy wing, supported mainly by annual assessment paid by... [MORE]	IEEE USA's Proposal	Jan 4, 2008 12:10
GuildY/ ZazonY wrote: "Alan Greenspan, March 2007 "If we open up a significant window for skilled workers, that would suppress the... [MORE]	Really!	Jan 4, 2008 12:04
H1-B petitions approved vs H1-B workers ------------------------------------------------------------------- (1) From How many H-1B visa workers? Counts vary VALLEY EMPLOYERS AMONG TOP USERS By... [MORE]	Never Mind!	Jan 4, 2008 10:24
Kathy Robertson wrote: "When there are millions of Americans out of work" The unemployment rate in IT sector is a whopping... [MORE]	Just Do It!	Jan 4, 2008 10:10
It is well known within the tech industry that the primary reason that companies are so much in love with...	Clearing Smoke Bombs	Jan 3, 2008 20:36
Kathy Robertson: "Companies are LYING about a shortage because they want to bring in cheap labor" Repeat something loud and long... [MORE]	Rhetorical Rhapsody	Jan 3, 2008 18:27
Kathy Robertson: "Companies are LYING about a shortage because they want to bring in cheap labor" A Dec 2005 Center for... [MORE]	Dis Information	Jan 3, 2008 18:23
S. Kolger wrote: "when American workers are no longer required to train their H-1B replacements" (1) From The Grassley Visa Tax... [MORE]	Train H-1B Replacement?	Jan 3, 2008 10:19
Bruce de la Vega wrote: "B. Lindsay Lowell and Harold Salzman at the Urban Institute that the USA is over-flowing... [MORE]	Caveat	Jan 3, 2008 10:06
Your article is well spiced because you hit the hammer on the nail.thanks [MORE]	moradeyo afeez	Jan 3, 2008 03:22
Background: U.S. STEM Workforce Shows No Sign of Impending Shortages http://www.rand.org/pubs/research_briefs/RB1505/index1.html "The pool of S&E-qualified secondary and postsecondary graduates is several times... [MORE]	Dana Rothrock	Jan 2, 2008 19:01
As "former chief economist at the U.S. Department of Labor", Ms. Furchtgott-Roth certainly knows that DOL is knowingly rubber-stamping labor... [MORE]	Kim Berry	Jan 2, 2008 16:21
"Allowing the Labor Department to adjust legal immigration every quarter to match U.S. need for foreign labor would help America... [MORE]	Bruce de la Vega	Jan 2, 2008 13:40
"labor certification from the Labor Department... requires the prospective employer to affirm that he has determined that no American workers... [MORE]	Bruce de la Vega	Jan 2, 2008 13:29
It boils down to this: WE CANNOT TRUST THE GOVERNMENT TO ENFORCE THE LAW OR TO EXERCISE DISCRETION IN A... [MORE]	TheReallyRightGuy	Jan 2, 2008 12:52
I hate the arcane nature of bureacracy and public policy. However, because we need to protect our sovereignty and regulate... [MORE]	Ken	Jan 2, 2008 16:38
There is a principle of economics that, in a free market (which we do NOT have) there can be neither... [MORE]	Bruce de la Vega	Jan 2, 2008 18:05
This is fine as far as you have gone. However... Let's give the Department of Labor more lattitude. Perhaps they could... [MORE]	Rev. Stephen M. King	Jan 2, 2008 12:28
When there are millions of Americans out of work due to outsourcing, why do we need to bring in temporary... [MORE]	Kathy Robertson	Jan 2, 2008 09:16
If you listen to the CEO/CFO/HR people at the large companies looking to import workers a half way intelligent person... [MORE]	Gene	Jan 2, 2008 13:41
Instead of a well thought-out analysis of the issues, we get a rehash of all of the old arguments Big... [MORE]	S. Kolger	Jan 2, 2008 08:39
The writer of this article does not seem to be much of a believer in Democracy. She wants to take... [MORE]	Voter	Jan 2, 2008 07:22