Do H1-B Visas Make Outsourcing a Bigger Problem?

Wednesday, July 18, 2012

A Cambodian visa. (Daniel Greer/flickr)

A lot of political talk in recent days has focused on outsourcing. Specifically, did Mitt Romney manage Bain Capital while the equity fund was shipping jobs overseas?

For many American companies, outsourcing has become a standard practice because lower cost countries can provide cheaper labor. But America's own immigration system might also be contributing to outsourcing. Reporter Ben Bradford took a look at the H1-B visa for our partner WNYC, and he found that the same companies that often outsource jobs have come to rely heavily on bringing workers into America from other countries at significantly lower pay.

Guests:

Ben Bradford

Produced by:

John Light

Comments [14]

Riz Lee from perth

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Feb. 20 2013 02:30 PM
Immigration Business Plan from USA

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Jan. 18 2013 02:38 AM
fredric from NY

H1B and L1 visas are corporate welfare programs, which is supported by govt.
Corporates keep saying "There is not enough resource to fill our position". There is a little change to this statement "There is not enough resource to fill our position, with the salary we are offering". H1B do 80 Hr per week, because their hands are tied. Corporates know that. Hence if an H1B's salary is 100K, by working 80 Hrs per week his effective salary become 50K and he takes away job of 2 people , since he is working 80 Hrs a week.
India keeps arguing about free trade agreements.Humans are not commodities.One cannot do cheap H1B slave trade in name of Free Trade.
If H1Bs are "Best And Brightest" and they Create Jobs, why can't they do it in their home country?

Dec. 04 2012 12:06 PM
SC

First of all i'm an H1b worker. I wanted to say that if out sourcing is stopped there wont be products produced in USA for cheaper price, they are now. An average american earning person's salary can be given to 4 people in other countries. The idea comes from an america and its logic is produced outside. The green card given to an outside person should give advanatage to america but its not giving since people who earn would send away their money back home (the major issue), if the govt says you get a green card if you stray here only and invest here only........... then the green card applications would come down. Remove diversity visas as they are occupying ordinary american jobs, with out any talent brought. I dont agree H1b is a fraud. H1bs are being looted with many mid vendors and big big commissions (indian consultancies) ultimately h1b is not enjoying high salary nor usa. Change H1b process and working completely. Without talent of an H1b indian companies would not have developed that much. even indian companies might have survived taking americans in usa without bringing H1b holder.

Nov. 11 2012 10:36 AM
Anon

The vast majority of H-1b visas are used to outsource jobs. I should know, I work in the outsourcing industry :(

You wouldn't believe the amount of fraud and abuse in the H-1b program. There are so many ways to scam the system and there is virtually NO oversight.

Jul. 21 2012 01:46 PM
twins.fan

The H1B visa, or other visas, like the OPT, the H4, the L1, the L1B, the B1 visa are an essential component of offshoring. The first process is called Knowledge Transfer (KT) and progresses as follows.

1) An Indian with a prestigious title is put in charge of the IT department.
2) Half of the US STEM workers are laid off. The remaining train workers on a work visa like the H1B visa.
3) Once the workers with work visas are trained, the remaining US workers are canned.
4) The US operations is dismantled.
5) The entire operation moves to India, with all of the jobs, engineers, technicians, electricians, secretaries, etc.

This is the way Mitt Romney and Barack Obama's campaign contributors do it and that is one reason that Mitt Romney and Barack Obama like H1B visas, and are dreaming up new work visas year after year after year.

Jul. 18 2012 06:30 PM
John80224 from Denver

Any program that's brought 2 million-plus into the country is going to have plenty of anecdotal evidence for whatever side you want to promote. But if this program doesn't facilitate offshoring, please explain how three to five of the top ten users are Indian offshore outsourcing companies (and don't tell me because of a headquarters and paperwork that Cognizant doesn't fit in this category) and most of the other top 20 are consultancies and IT companies with huge offshore presence.

Jul. 18 2012 03:47 PM
Dennis from Denver

The LCA form to fill out for an H-1B is the simplest form which is always rubber stamped. There is no proof required that a firm is actually paying the amount they say they are paying on the form. The biggest flaw is that a firm is not required to look for a U.S. worker before exclusively hiring H-1B workers.

Most H-1B workers are hired for ordinary entry level IT jobs.

This program should be scrapped. There is already an O-1 vias for exceptional people from around the world, and there is no limitations on the number. Why is this not enough?

Jul. 18 2012 03:12 PM
Marla from Detroit

The H-1B visa is definately used to replace U.S. workers.

There is no requirement to first seek a U.S. worker before hiring an H-1B worker. The H-1B worker is beholden to the sponsoring company to stay in the U.S. This makes it more attractive to hire an H-1B worker instead of someone who is just as good but is free to leave. It sets up an indentured relationship which is unnatural for the job market.

If a company wants a better qualified worker, they merely have to raise the pay scale.

Jul. 18 2012 03:05 PM
Gino Colangelo from New York City

My company sponsors one H1B visa because we need the particular skill set of the person we sponsor. We actually paid a bit more than market rate for the position due to the visa requirement. I can attest from personal experience that the process is rigorous; we really had to make a solid case for obtaining the H1B for our employee.

Jul. 18 2012 02:58 PM
Kimberly from Summit, NJ

It's not true that the H1B program is necessarily a way to get cheap(er) labor. Please check your facts. My husband was initially here on an H1B visa. He is a specialized cost accountant, and his employer was required by federal law to pay him the same rate they would pay an accountant of the same skill level who was a permanent resident or American citizen.

I feel that the guests you invited for this story really misrepresented the issue.

Jul. 18 2012 02:38 PM
Alessandro Boga from New York

I'm a H1-B holder since March 2011. Native Italian, I was sponsored by Colangelo & Partners PR, based in New York, as Marketing Research Analyst and I still work for the same company. I don't know if H1-B visas are used by those outsourcing companies to bring cheap labor to the US, however, for my experience, my salary is as high as the industry average. For what I've been told and read, a competitive salary is a mandatory requisit in order to get the H1-B visa approval.
Personally I think I didn't kick out any American workers for getting my job position because, due to the company business and Italian base clients, they need somebody with my skills and culture.

Jul. 18 2012 10:06 AM
Nick from Detroit

All H1B Visa must be approved by the DOL (Department of Labor) based on salary level and job description. If this is indeed true then the DOL has been turning a blind eye to H1B apps coming in with salaries that are too low. As an H1B holder myself I find this very hard to beleive. The American immigration system is very complicated, expensive and BROKEN.

Jul. 18 2012 09:15 AM
TF from NYC

Anyone who says outsourcing is bad should look at the label of their shirt and see where it is made. Your buying that shirt is supporting outsourcing of a job that at some point was in the U.S.

Jul. 18 2012 08:43 AM

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