H-1B Crackdown!
I get back from vacation and look at the news and not much has changed.
The concern in the U.S. over offshoring - not necessarily caused by my recent posts and articles - has now grown into an actual government investigation. This particular investigation is specific to the H-1B visa program and some offshore-based outsourcing companies. Evidently these outsourcing firms (such as Indian companies Infosys Technologies and Wipro) are believed to fill needed U.S. positions initially, but then get their people trained and cycle them back to their home countries to work, where they are used to permanently replace U.S. workers. Bwaa haa haaa! A nefarious plan.
This seems to me like one of those phenomena a country can manage a little better, but cannot change. Offshore expertise will improve over time, making it more easy for those offshore to replace US workers. Any company, no matter where it is headquartered will feel the competitive drive to lower workforce costs while maintaining or improving performance. Case in point: It’s not just companies in India doing this - it’s companies headquartered in the U.S. with “extensive outsourcing operations” in India, such as Accenture and Cognizant Technology Solutions. How will Senate investigators treat those organizations? I bet they are not investigated as aggressively if at all. the situation is just too complicated.
You cannot avoid being affected by this in some way whether you use offshore labor or not. Just manage it as best you can. Oh, and if you are using the companies being investigated, begin preparing your statement now.
Posted on: June 11, 2007 10:18 PM |
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The question to ask is: "Is this a bad thing ?"
Country A pays 100.000.000 for a specific type of employee.
Country B can deliver the same skills for 50%.
Additional costs to sub-contract to country B ... 20%
his leaves 30% tat can be used in new endeavours which creates new jobs.
The idea is for every country to deliver what they can at the cheapest possible prices.
This would drive expenses down (also for the consumer) and create new opportunities.
Governments tend to meddle in these affairs.
We want our own workforce to keep their jobs (scared of freed up finances not being reinvested)
We add heavy taxes to import products to save our own workforce.
Our own workforce now has to pay higher prices and has a higher cost of living.
The increase in costs forces companies to introduce further money saving endeavours.
A cruel circle of life.
Country A pays 100.000.000 for a specific type of employee.
Country B can deliver the same skills for 50%.
Additional costs to sub-contract to country B ... 20%
his leaves 30% tat can be used in new endeavours which creates new jobs.
The idea is for every country to deliver what they can at the cheapest possible prices.
This would drive expenses down (also for the consumer) and create new opportunities.
Governments tend to meddle in these affairs.
We want our own workforce to keep their jobs (scared of freed up finances not being reinvested)
We add heavy taxes to import products to save our own workforce.
Our own workforce now has to pay higher prices and has a higher cost of living.
The increase in costs forces companies to introduce further money saving endeavours.
A cruel circle of life.
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