Monday, November 26, 2007

The H-1B and L-1 Offshoring Visa

Revisiting InformationWeek's article on Senator Grassley's inquiry of H-1B and L-1 abuse, caused some intrigue on my part.

Information Week: Who Gets H-1B Visas? Check Out This List, May 17, 2007

From Senator Grassley's publication, "....top 20 H-1B visas with L information" corporate sponsors of the H-1B visa represent 39.6% of the 85,000 visas available to "for-profit" corporations. I've reclassifed the list of Top 20 corporations into the following categories:

Business Process Outsourcing Specialists (12)
Accounting Services (2)
Producers of Tangible Goods (6)

Of the top 20 corporate H-1B visa sponsors, only 6 produce tangible goods, 2 provide accounting and financial services, while 12 of the top 20 corporations specialize in Business Process Outsourcing (BPO) i.e. facilitate the off-shoring of technical services.

The 6 Producers of Tangible Goods are also the most vocal U.S. proponents of the H-1B visa, yet these American Superstar corporations only employed 20.38% of the H-1B and L-1 visas on the Top 20 list -- 7685 H-1B and 2129 L-1 visas. (7685 = 9.04% of the total 85,000 H-1B visas)

Seventy Three percent (73.43%) of the "Top 20" H-1B and L-1 visas were employed to assist in Business Process Outsourcing /Offshoring of Information Systems services. Legitimate U.S. employers are being denied H-1B visas and legitimate U.S. employment candidates are being denied employment due to misuse of guest-worker programs.


In 2004, the National Science Foundation reports 52,544 (of 57,405) Bachelor's degrees in Computer Science were awarded to Citizens/Permanent Residents, 4,861 BS-CS degrees granted to foreign students. http://www.nsf.gov/statistics/wmpd/tables/tabc-6.xls

Business Process Outsourcing specialists employed 35,365 of 48,159 guestworker visas from the Top 20 list.


Concerning (2006) H-1B misuse and fraud, IBNLive reports:

"... companies with operations in U.S. are bearing the brunt of such [H-1B] frauds, last year, companies like Wipro and Infosys applied for 20,000 H-1B visas each."
If we subtract these 40,000 H-1B applications from the total of 123,480 applicants for 2006, it becomes obvious why the H-1B cap was reached in one day this year.

Visa Consultants selling H-1b visas



http://www.youtube.com/watch?v=bOqOxYr4F18


Top 20 H-1B Employer list 2006:

2006 H-1B and L-1 visas in Top 20 list --
Total visas = 48,159

Business Process Outsourcing Specialists (12)
TATA CONSULTANCY SERVICES LIMITED = 8293
INFOSYS TECHNOLOGIES LIMITED = 5202
WIPRO LIMITED = 4841
SATYAM COMPUTER SERVICES LTD = 3830
PATNI COMPUTER SYSTEMS INC = 1831
HCL AMERICA INC = 1421
LARSEN & TOUBRO INFOTECH LIMITED = 1090
I-FLEX SOLUTIONS INC = 876
MPHASIS CORPORATION = 809
TECH MAHINDRA AMERICAS INC = 781
COGNIZANT TECH SOLUTIONS U S CORP = 5746
LANCESOFT INC = 645
Total H-1B and L-1 visas reported = 35,365
Percentage of "Top 20" Total = 73.43%

Accounting Services (2)
ERNST & YOUNG LLP = 913
DELOITTE & TOUCHE = 2067
Total H-1B and L-1 visas reported = 2980
Percentage of "Top 20" Total = 6.19%


Producers of Tangible Goods (6)
MICROSOFT = 3285
IBM CORPORATION = 2367
INTEL CORP = 1222
ORACLE USA INC = 1198
CISCO SYSTEMS INC = 893
MOTOROLA INC = 849
Total H-1B and L-1 visas reported = 9814
Percentage of "Top 20" Total = 20.38%


Source:
GRASSLEY, DURBIN RELEASE NEW INFORMATION ON L VISAS

Data: http://grassley.senate.gov/public/releases/2007/062620072.pdf

1 comment:

Mukesh Speak said...

H-1B as a remedy for labor shortages and as a means of hiring "the best and the brightest" from around the world (which I

strongly support), the vast majority are ordinary people doing ordinary work. Instead of being about talent, H-1B is about

cheap labor.

H-1B visa holders may only work for sponsoring employers after approval by the Departments of Labor and Homeland Security.

Although most of the non-compliant H-1B workers had posted wages from employers in fields associated with technical or

specialty occupations, the report noted that one H-1B worker had earnings from a restaurant and janitorial service.

Thank's
and
Regard's
H-1b visa