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-Lurid Crime Tales-
How Indian IT gamed the H-1B for cost-cutting US clients
2017-02-16
[ZDNet] For over a decade now, USCIS grants H-1Bs through a computer-generated lottery, and you would think that this serves as an excellent, unbiased way to distribute these work visas. The problem is, while an employee can only submit one Labour Condition Application (an approval by the Department of Labour and a pre-requisite for a H-1B visa), there is no limit to the number of applications that a firm can submit for that one job. If a firm then submits 10 applications with the names of 10 other staff, no prizes for guessing how much the odds of getting a visa for solo applicants such as you or I in a lottery increase.

Therefore, most small companies seeking that one visa for a tough-to-find biophysics engineer or a robotics expert will in all probability lose out to a $60,000 low-end IT programmer with an H-1B from India who most probably performs mundane and routine software tasks for a large American company. So, when people furiously debate about whether there is a shortage or a surplus of STEM workers, the answer in fact may be both -- a shortage at the upper end for specialized work and a sudden surplus of low-end tech candidates who have been crowded out of the market.

Two things clearly indicate that these H-1Bs are no AI or robotics geniuses: Employers who hire H-1Bs need to show that these recruits are not displacing American workers. However, the exception to that rule is if the new hire's annual salary is greater than $60,000. No surprise that the median salary for most outsourcing firms is just a shade north of this number.

Also, it doesn't come as a shocker that not a single technology services company was among the top 200 in terms of patents granted according to Mint -- at least one marker for cutting edge innovation -- while close to half of the total hire didn't have more than a Bachelor's degree.
Posted by:Skidmark

#2  And the kickback to the offshore account Gorb, don't forget that. More middlemen and markups than Tony Soprano's liquor business.

"What's the rate?"
"I'll get you a guy for 3/4 of that"
"I'll get you another guy, offshore, for half"
"You get two guys for 5/4 the wages of what you're paying now, and 24 hr service"
"With 1 local and 2 guys offshore you get 3 for less than the price of two. Round it up to two and we'll call the difference an 'assurance premium', rebated after the first year."
Posted by: Skidmark   2017-02-16 17:29  

#1  I know that certain high-tech companies go looking for specific foreigners to fill specific roles. Probably because they take less money. The legal team is told who needs to be hired, then they go to work. They interview the guy and find out all sorts of details about his life, and write up what they need so that it includes these details, including specific dialects spoken sometimes, etc.. Then they advertise for a candidate, probably in the same closet the jaguar is hiding in in The Hitchhiker's Guide to the Galaxy", and lo and behold, the only guy who responds is the guy they have in their hand! Voila, instant H1-B.
Posted by: gorb   2017-02-16 14:19  

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