9 Articles Worth Reading
9 Articles Worth Reading
Date: Monday, February 07, 2005 10:43 AM
JOB DESTRUCTION NEWSLETTER
by Rob Sanchez
February 07, 2005 No. 1192
Note from Rob - you can leave comments on the pages that contain
Article 1 and 6.
Article 1:
http://www.philippinenews.com/news/view_article.html?article_id=ce8a043625b88e59715b87037c619ea3
Big business backs immigration reform
The movement to secure protections for immigrant workers received a big
push as the U.S. Chamber of Commerce vowed to support immigration
reform bills and President George W. Bushs temporary workers
program. The U.S. Chamber of Commerce is backing meaningful immigration
reforms. To support the needs of most businesses to recruit the
brightest and the most skilled workers, the association has asked
Congress to up the number of skilled worker visas and essential workers
- or those on H1B, H2B and L visas, its website showed.
Article 2:
http://www.shrm.org/hrmagazine/articles/0205/0205ladika.asp
Unwelcome Changes
Be ready to tackle new restrictions and burdensome application
requirements when relocating workers to the United States. Arie Kachler
is understandably nervous: Although he has spent 14 years in the United
States - six years attending college and eight more working after
graduation - he knows he could be ordered back to his native Guatemala
at any
time. After earning his degree, Kachler legally returned to the United
States on an H-1B visa, which was extended twice, but his status
remains tenuous as he waits for approval of his green card.
Article 3:
http://www.baltimoresun.com/news/opinion/bal-ed.immigrate30jan30,1,1937575.story?coll=bal-opinion-headlines&ctrack=1&cset=true
Managing immigration
STRAIGHT-TALKING maverick Sen. John McCain recently posed a rhetorical
question for fellow Republican lawmakers who have criticized President
Bush's plan to reform the nation's immigration system. "I would like to
know how many of my colleagues want to shut down the homebuilding
industry, the resort industry and the restaurants that we patronize
here in our nation's capital," he asked, referring to jobs generally
held by immigrants, many of them illegal, in industries that serve
moneyed Americans.
Article 4:
http://sify.com/finance/equity/fullstory.php?id=13659677
Chennai co wins 1st BPO contract in US
Chennai: Chennai-based Congruent Solutions Private Ltd has become the
first overseas company to provide back-end services to a retirement
funds consulting firm in the United States. Congruent has tied-up with
California-based employee benefits consulting firm Associates In
Excellence to provide back-end services including processing works for
the 401 k plan, a popular retirment plan in the US, from Chennai.
Article 5:
http://www.informationweek.com/story/showArticle.jhtml?articleID=59200189
ACS To Open Second Operations Center In China
New center will add finance and accounting services to ACS's
business-process-outsourcing offerings in the Asia-Pacific region.
Article 6:
http://news.pacificnews.org/news/view_article.html?article_id=43167795b5279c1a5b8c223208907f27
Senator Backs Bush on Immigration
As debate begins on the thorny issue of immigration reform, Sen. John
McCain (R-Arizona) expressed support for the guest worker program
proposed by President Bush. "What Im saying is that in the case of
the illegal immigration problem, if we have a legal worker program,
where people can come and do jobs Americans wont do, and you could
set up a mechanism to do that," said McCain in an interview televised
on PBS. The senator said people should be able to do the work, stay on
the job if necessary, and go back home. "Theres no one who will pick
lettuce in Yuma today, so you have to have people come illegally to do
that," he added.
Article 7:
http://www.indiadaily.com/editorial/01-31a-05.asp
Indian IT professionals still underpaid compared to the rest of the
world
Sudeep Srivastav, experienced software engineer in Bangalore works for
a BPO outsourcing company and earns Rs 15 lakhs, which is equivalent to
US $33,000 per year. When he was working an H1B assignment in America
with an Indian company subcontracting him to a large American telecom
company, his billing rate was $120,000 per years and he was paid
$65,000 per year. You do not get $33,000 just like that. That kind of
remuneration is given to one in ten IT professionals in India" says
Sudeeep.
Article 8:
http://www.nysun.com/article/8223
Immigrants Nourish U.S. Business
"There are two kinds of visas," Mr. Kaye begins. "There are visas for
immigrants, people who want to permanently live in the U.S. And there
are non-immigrant visas for people who want to work in the U.S. for a
period of time. In this category of non-immigrant visas, there are 17
different kinds, some for students, some for professionals, some for
agricultural workers, some for seasonal workers, some even for caviar
workers, thanks to an Alaskan congressman who secured a special
exemption for his constituency." Mr. Kaye explains. Once limited to
195,000 workers per year, since the end of the 2003 fiscal year they
are capped at a mere 65,000 H1-B workers for the entire country.
Acknowledging there are exemptions to the strict quota of 65,000 per
year, Mr. Kaye notes that there are "carve outs," immigration lingo for
classes of workers who do not count against the cap. They include
college and university professors, certain medical doctors, and
non-profit organizations, among others. But still he wishes the cap
were significantly increased to "165,000 or more,"
Article 9:
http://www.palmbeachpost.com/news/content/shared/news/nation/stories/0206_IMMIGRATION_BUSINESS.html
Guest worker plan will be tough sell for Bush
President Bush is once again pushing a plan that could grant temporary
work permits to millions of illegal workers, giving immigration
advocates new hope that it will become law. Harris Miller, president of
the Information Technology Association of America, said that his group
will be aggressively pushing for more visas after laying low for a few
years after the dot-com bust. "The economy is recovering," he said.
"The unemployment rate is still at a very reasonable level (and)
companies are expanding again quite rapidly, so we need to have access
to global talent."
1. +++++++++++++++++++++++++++++++++++++++++++++++++++
http://www.philippinenews.com/news/view_article.html?article_id=ce8a043625b88e59715b87037c619ea3
PHILIPPINE NEWS
Big business backs immigration reform
Rita Villadiego, Feb 02, 2005
NEW YORK - The movement to secure protections for immigrant workers
received a big push as the U.S. Chamber of Commerce vowed to support
immigration reform bills and President George W. Bushs temporary
workers program.
Bush, on a televised press conference at the White House last
Wednesday, reaffirmed his commitment to make a fresh push for stalled
immigration reforms.
Recognizing that "people are coming to our country to do jobs that
Americans wont do," Bush said immigration reform was one of his
legislative priorities this year.
"Im looking forward to working with people of both parties on this
issue," Bush said.
The U.S. Chamber of Commerce is backing meaningful immigration reforms.
To support the needs of most businesses to recruit the brightest and
the most skilled workers, the association has asked Congress to up the
number of skilled worker visas and essential workers - or those on H1B,
H2B and L visas, its website showed.
Three million businessmen are affiliated with the U.S. Chamber of
Commerce, which is headed by Thomas Donohue.
It supports legislation seeking permanent residency for millions of
undocumented workers who are already in the U.S. The group believes
that foreign workers are essential to the growth of U.S. economy.
Citing a U.S. Labor Department study, the chamber said that over the
next 30 years, 60 million Americans will retire. By 2010, America will
have 168 million jobs and only 158 million Americans in those jobs.
In 10 years, the new baby boomer generation will reach retirement age,
depleting further the size of the American workforce. It pointed out
that immigrants perform jobs most Americans wont do in such
important industries like construction, landscaping, health care,
restaurants, hotels, home and others.
A year ago, Bush unveiled to Congress his proposal to create a system
that would allow millions of undocumented workers to have temporary
workers permit that would allow them to return to their countries of
origin when their permits expire. Under the proposed program, these
workers would pay taxes and maintain their own pensions in the future.
About eight to 12 million undocumented immigrants are seen to benefit
from Bushs temporary workers program.
Opponents of immigration reform say immigrants have caused a downward
push on Americans salary because these workers accept jobs on lower
than prevailing wages.
Due to strong opposition from his own party, the Bush initiative failed
to get off the ground as many Republican congressmen want a stricter
policy that would punish illegal immigrants.
2. +++++++++++++++++++++++++++++++++++++++++++++++++++
http://www.shrm.org/hrmagazine/articles/0205/0205ladika.asp
Unwelcome Changes
Be ready to tackle new restrictions and burdensome application
requirements when relocating workers to the United States.
By Susan Ladika
Arie Kachler is understandably nervous: Although he has spent 14 years
in the United States - six years attending college and eight more
working after graduation - he knows he could be ordered back to his
native Guatemala at any
time. After earning his degree, Kachler legally returned to the United
States on an H-1B visa, which was extended twice, but his status
remains tenuous as he waits for approval of his green card.
Hes been waiting a long time now - nearly six years. It normally
takes about two years to complete the three-step approval process,
hes been told. Hes now on the final step, but instead of the
typical 300 to 365 days, he has
been told it will take 900 to 990 days.
Even after his extended wait, there is no guarantee he will be rewarded
with a green card. He knows of other immigrants who have been denied
green cards and sent packing with just 10 days notice.
"Its very difficult. You dont know whats going to happen,"
says Kachler, a 37-year-old father of two and the chief information
officer for Telcom.Net, a provider of Internet services. "The life
youve been building for many years may be interrupted." Kachlers
boss, Gustavo Pospischel, says Kachler "is very valuable for us. He
would be very costly to replace."
Higher Immigration Costs
Gustavo Pospischel, who runs Telcom.Net and Owl Digital Security,
Internet companies that provide web hosting, design and security, has
seen the process for bringing employees to the United States become
more burdensome.
"Theres a lot more company involvement in the process," which takes
time and carries extra costs, he says.
And the costs borne by Pospischel and other employers will now be even
higher. As of March 8, the federal government will make an additional
20,000 visas available but also will increase the fees for certain
types of visas by anywhere from $500 to $2,000. In addition to a $185
processing fee, most employers with more than 25 workers will have to
pay a $1,500 fee for an
H-1B visa applicant. The money will be used to help train American
workers. Companies with 25 employees or less must pay $750. That change
took effect Dec. 8. In addition, all petitioners must pay a $500 visa
fraud prevention
and detection fee, as of March 8.
For those obtaining an L-1 visa, the petitioner must pay only the $500
fraud prevention fee.
"Its a pretty heavy price to pay for just 20,000 extra visas," says
Craig Symons, an immigration attorney with Krupin OBrien LLC in
Washington, D.C.
This sense of insecurity for both employers and employees has become
all too common in the post-Sept. 11 world, immigration experts say.
Businessmen and women who used to wait two or three days to get a visa
approved to travel to the United States now may wait four to six weeks.
The number of H-1B visas, which enable many professionals to work here,
has been slashed. And even billion-dollar companies with widespread
name recognition must file stacks
of documentation assuring immigration officials that the companies
actually exist and can afford to pay the salaries of employees
theyre bringing into the country.
Those changes have made life much more difficult for businesses that
rely on foreign-born employees, and are necessitating some serious
advanced planning to cope with sometimes-lengthy waits. They also have
deterred some
professionals from trying to come to the United States at all.
"In my opinion, it has taken away significantly from the ability of our
economy to internally boost itself," says David Nachman, an immigration
attorney with Nachman & Associates PC in Upper Saddle River, N.J.
New Rules, More Hoops
Since the 2001 terrorist attacks, security concerns have been at the
forefront of government policy, resulting in changes to the structure
of immigration services. A positive change is that the State Department
and the Homeland Security Department now work hand in glove, sharing
more communication than used to occur between the federal agencies
responsible for handling immigration and visas.
Thats a good thing, says Nachman, but he says that sometimes the
agencies go too far. "Were all interested in securing the borders of
the country against potential terrorists, but we just want to make sure
we identify
those who are terrorists and keep them separate. Just because a person
is an immigrant doesnt mean theyre a terrorist."
Mark Rhoads, a lawyer in Richmond, Va., who heads the business
immigration group of the Pittsburgh-based international law firm Reed
Smith LLP, says that since the Sept. 11 attacks, policies have become
"so militantly
security-oriented, its having a detrimental effect on business
competition."
Craig Symons, an immigration attorney with Krupin OBrien LLC, a
Washington, D.C.-based law firm, says that the shortage of American
graduates with mathematics and science degrees makes hiring
foreign-born workers essential
in some industries. The difficulties of bringing in foreign workers end
up hurting some fields more than others; he says medicine has been
affected significantly.
Nachman cites the example of an Iranian primary care physician who
received a job offer in a medically underserved region of the United
States but had to wait six months for his visa to be approved. Before
Sept. 11, the approval would have taken three or four weeks, Nachman
says. "Theres a very delicate balance that exists between affording
due process and making sure our national security is taken care of."
One reason for such delays: Before issuing a visa, the U.S. consulate
in an employees home country conducts a face-to-face interview.
Previously, many consulates didnt require interviews, especially
with professional workers
who had obtained visas in the past, Symons says.
Also, more documentation is required today. "Petitions we filed for
workers were much thinner" before, Symons says - perhaps 50 or 100
pages, not the 300 pages that are common today.
And the amount of information companies must provide is greater now
than in the past. Immigration officials now require annual reports from
Fortune 500 companies to show that they can pay an employees salary,
Symons says. "Some of the stuff is more irritating than a real
problem," but it adds to the backlog of immigration cases. Consulates
also tend to give extra scrutiny to individuals with skills on the
Technical Alert List - a list of skills that can be used to harm
Americans, such as environmental engineering, which encompasses
infrastructure such as water treatment plants and reservoirs.
"Just by virtue of what [applicants] are doing, red flags are going
up," Nachman says. He urges HR professionals to make sure they, or the
immigration experts they hire, can adequately explain what an
individuals responsibilities will be, and why their skills wont
be used to the detriment of the United States. The would-be employees
also need to be coached to make sure they can explain their role
properly, without raising concerns. Nachman also suggests that
companies be proactive and explain a would-be employees position in
the forms they submit to the government,
rather than wait for government officials to ask questions. "Its all
about advocacy," he says.
On the Wrong List
Struggles such as these have made the United States a more difficult
destination for foreign workers, and have made some companies reluctant
to bring in employees from overseas.
In fact, the United States is now the third most challenging country in
the world for relocating employees, trailing only China and Japan,
according to the 10th annual Global Relocation Trends Survey, conducted
by the Society for Human Resource Management, GMAC Global Relocation
Services and the National Foreign Trade Council.
Its a major shift from the past, when the United States never even
cracked the top 10 list. The 134 multinational organizations that
responded to the survey cited the threat of terrorism and the measures
put in place to prevent it as the main stumbling blocks to relocation.
Rick Schwartz, chief executive officer and president of GMAC Global
Relocation Services in Oak Brook, Ill., says the length of time to
process documents, the scrutiny they come under and the limitations on
the number of H-1B visas are key concerns.
In addition, there is now "an aura and stigma of the potential for
terrorism. Before Sept. 11, very few people in the U.S. or even in
other parts of the world considered the U.S. a dangerous location.
After Sept. 11, that has changed very dramatically," and some employees
and their families are reluctant to relocate to the United States,
Schwartz says.
Limited Visa Supply
One of the main difficulties for employers has been the relatively
scant supply of H-1B visas. (To obtain such a visa, an immigrant must
be needed to fill a professional position and must have at least a
bachelors degree.)
During the tech boom of the 1990s, technology companies had a tough
time meeting the demand for workers, so the annual number of H-1B visas
issued was tripled from 65,000 to 195,000. But when the boom went bust,
the number
of visas was cut back to 65,000, beginning with the 2004 fiscal year.
Less than five months into the 2004 fiscal year, all 65,000 visas had
been handed out, Symons says.
One Companys Immigration Experiences
Dawn Powell-Reid, a paralegal who handles immigration issues for Merck
& Co. Inc., says the pharmaceutical giant recruits foreign students -
mostly Ph.D.s - graduating from American universities. "Most of the
positions we hire
them into are scientists and engineers in our research laboratories
because the top scientific candidates are foreigners and not U.S.
citizens. There just arent many top scientific researchers that are
U.S. citizens
available, and we attempt to recruit researchers who are at the top of
the field."
Merck has handled its own paperwork for would-be immigrants since 1992,
although it uses outside counsel to help employees apply for a green
card, says Powell-Reid, who deals with about 200 new visa requests and
visa extensions each year.
"The biggest change for us is that everything takes longer" since Sept.
11, she says. Most of the problems Merck encounters stem from U.S.
consulate employees who arent well versed in immigration procedures,
Powell-Reid says. "A lot are incompetent. I think they just need to
spend more time training them."
For 2005, all 65,000 H-1B visas were snapped up on the first day of the
fiscal year. (For 2005, immigration officials started accepting
applications on April 1, six months before the start of the fiscal
year.)
The limits dont "meet the employment needs of companies," Symons
says. "A lot of companies wouldnt be hiring foreign workers, putting
in the time and investing the money, if they could hire American
workers" to fill the
positions most in demand. Scott Sullivan, senior VP of sales and
marketing at GMAC Global Relocation Services, says the tight limit on
the number of H-1B visas actually "accelerates offshoring for a company
that cant attract
the talent they need into the country."
One of those employers affected by the relatively low number of
available H-1B visas is Pospischel, who tried to rehire an Argentine
who had worked for his company until the tech bust forced him to lay
off much of his staff in 2002. "Hes a great customer service guy,"
Pospischel says, but there are no visas available to bring him back
into the United States.
Employers desperate for H-1B relief may be catching somewhat of a
break. This past December, the federal government relaxed the limits on
H-1B visas slightly. Starting March 8, there will be 20,000 additional
H-1B visas available for the year - but only for those with a
masters degree or higher from a U.S. university. On the flip side,
fees for obtaining those and other H-1B visas are soaring. Visas that
once cost $185 could cost up to $2,185 come March.
Symons says its too early to tell how quickly the 20,000 additional
visas will be doled out. "Its possible they could last all year."
The requirement that the visa applicant have an upper-level degree from
an American university "will help only certain employers." Despite the
change, a well-educated, highly experienced engineer who earned a
degree from a country other than the United States - such as the United
Kingdom - wouldnt be able to enter the country with one of the new
visas.
Slowing Supply of Students
The new relaxed H-1B limits make it easier for employers to hire
foreign-born students earning graduate degrees from U.S. schools. But
for the program to work, the supply of students coming to the States
needs to remain strong - and there are signs that it isnt. For
example, a large percentage of math and science graduate students are
not Americans, and the new regulations are slowing their admission to
U.S. universities.
"You cant run a major research university without these people doing
research," says Dennis Jett, dean of the International Center of the
University of Florida in Gainesville. Jett says that since Sept. 11,
"the perception is things are more difficult and less welcoming."
At the same time, Western European, Canadian and Australian
universities are doing more to court international students.
"If were to maintain our competitive economic edge we cant do
that without the best minds, wherever theyre from," Jett contends.
And its not just a matter of universities benefiting from foreign
scholars and students. Companies that need someone with math or science
expertise often hire foreign graduates. But with so few H-1B visas
available, many
graduates have headed back overseas after completing their education,
Rhoads says. However, that may change with the new visas available for
those with
graduate degrees.
Other Visa Options
Companies also are turning to other types of visas to bring workers
into the country. For example, companies with an international presence
may rely on L visas, which allow intracompany transfers of employees
who have worked for
the corporation for at least one year in an overseas operation and are
at the level of manager, executive or person with particular specific
knowledge of the business, Rhoads says.
And E visas can be used by the U.S. operations of companies based in
countries that have treaties with the United States, such as Japan,
Australia and Western European nations. With E visas, Rhoads says,
managers, executives and those with essential skills can be brought in
from the companys home country. So the U.S. operations of a German
company such as Volkswagen could bring in German employees to fill key
positions.
But getting visas of any type may be difficult if the employees you
hope to relocate hail from certain countries.
Immigration experts say individuals from the Middle East or the former
Soviet Union often have a tougher time obtaining visas than those from
Western Europe or Australia. Specifically, Symons says Middle Eastern
males
between the ages of 16 and 45 often run into problems. "Theres
definitely a sort of discrimination in that respect."
But even for those from European nations, the process is far from easy.
Consider the experience of a man from Ireland who has worked for a
Fortune 500 company for more than a decade, is married to an American
and entered the United States on an L-1 visa in 1998. In January 2004,
he filed for a green card and citizenship for himself and his three
children. "Im finding it quite taxing," he says. "The paperwork is
horrendous."
The applications are being handled for each person individually, not as
a family, and are being processed through different offices of the U.S.
Citizenship and Immigration Services. The family members also applied
for travel permits in January 2004 and were told it would take 30 days.
However, the first travel document didnt arrive until September, and
by mid-November, one still hadnt been approved.
Without the travel permits, the man and his children could leave the
country but would have no guarantee they would be permitted to return.
Foreign employees who want to leave the United States and come back can
ease their return by making sure that before they leave they pack a
letter from their employer, a paycheck stub and other proof of
employment, suggests
Emily Fossey, president of Advanced Immigration Services in Lakeville,
Minn. She spent nearly a decade handling immigrant visas for the IT
company Renaissance Worldwide. Prior to Sept. 11, says Fossey, "it was
very unlikely
that you would have to present" such information. "Now, it is very
unlikely that you dont have to present it."
Getting It Done
When it comes to filling out the visa application, HR professionals
should consider getting outside help. Fossey cautions that although "95
percent to 98 percent of the process is administrative work," the small
remaining
percentage "is what will enable the visa to go through or not go
through."
At the very least, she suggests, have an expert review the application
before it is submitted to immigration authorities because if the
government asks for clarification, the company has only one chance to
provide it
properly, or the application will be denied. And bringing in an expert
once the application has run into problems will cost more.
Nachman says some HR managers want to hand the whole thing off to him
and say, "I dont want to know. You do it." But he says HR managers
"have to have an understanding about what its about."
If HR professionals know the ropes, they can work with the immigration
expert to determine visa categories besides the H-1B for which an
employee might be eligible, Nachman says. They also need to have a good
grasp of what
the companys hiring needs will be, because obtaining visas can be
time-consuming.
HR professionals "understand better than anyone what are the protocols
in the company, what are the timing needs," Nachman says. "Timing is
probably the most important thing," he says, because it takes so long
to get visas
approved today.
3. +++++++++++++++++++++++++++++++++++++++++++++++++++
http://www.baltimoresun.com/news/opinion/bal-ed.immigrate30jan30,1,1937575.story?coll=bal-opinion-headlines&ctrack=1&cset=true
Managing immigration
January 30, 2005
STRAIGHT-TALKING maverick Sen. John McCain recently posed a rhetorical
question for fellow Republican lawmakers who have criticized President
Bush's plan to reform the nation's immigration system.
"I would like to know how many of my colleagues want to shut down the
homebuilding industry, the resort industry and the restaurants that we
patronize here in our nation's capital," he asked, referring to jobs
generally held by immigrants, many of them illegal, in industries that
serve moneyed Americans.
Mr. McCain's crystallization of the central point of the president's
plan -- temporarily filling jobs that go wanting with immigrants
wanting jobs, and doing it in a controlled way -- is the pragmatic view
of those who believe it's the best way to control illegal immigration.
Trouble is, those on the other side of what is now a rigid divide among
congressional Republicans want the focus of reform on border security.
They oppose any legalization of illegal immigrant workers, even if
temporarily, and say it will prompt more illegal immigration and
eventually lead to amnesty for some of the 8 million illegal immigrants
already here. They may be right about that.
Nonetheless, the president's plan, though far from perfect, is a
reasonable effort to mesh the nation's security needs with its need for
workers who will come with or without a formal invitation. He insists
that managing immigrant workers will make it easier to secure the
border.
That message is not resonating with some Republican lawmakers in the
House who have dismissed the plan as a backdoor amnesty that puts
corporate interests ahead of national security. Rep. Tom Tancredo of
Colorado has vowed that any bill reflecting the president's plan "will
never pass this Congress." And Rep. James F. Sensenbrenner Jr.,
chairman of the House Judiciary Committee, recently introduced
legislation proposing tough immigration security measures.
Senate Republicans, meanwhile, have not bothered to put immigration
reform on their lists of legislative priorities. However, Senator
McCain and Sen. Edward M. Kennedy, a Democrat, are working on a reform
bill that has many of the president's ideas.
Mr. Bush should vigorously support this bill. If he can't get the full
support of his party, he should turn to the Democrats. Though Democrats
have voiced skepticism about elements of his plan, he could win them
over by adding two things to it:
First, an amnesty provision that would legalize a specific number of
illegal immigrants who can prove they have lived, worked and paid taxes
here for a set period of time and have no terrorist ties. Second,
worker protections to prevent abusive employers from treating the
program's immigrants as indentured workers.
The president repeatedly mentions the "mandate" voters gave him for his
second term. This would be an excellent use of that political capital
he claims to have amassed.
4. +++++++++++++++++++++++++++++++++++++++++++++++++++
http://sify.com/finance/equity/fullstory.php?id=13659677
Chennai co wins 1st BPO contract in US
Monday, 31 January , 2005, 12:59
Chennai: Chennai-based Congruent Solutions Private Ltd has become the
first overseas company to provide back-end services to a retirement
funds consulting firm in the United States. Congruent has tied-up with
California-based employee benefits consulting firm Associates In
Excellence to provide back-end services including processing works for
the 401 k plan, a popular retirment plan in the US, from Chennai.
Congruent has also developed a web-based self-service platform for
Associaties In Excellence, which would allow several US companies and
its employees to join the benefits schemes or track their investment
portfolio on the Internet platform. For the last many years, US
retirement funds companies have been looking to India for their back
office functions, but were hesitant to part with sensitive financial
information.
It is estimated that 1.5-2 lakh people work in the US in the technical
compliance area in the 401 k industry. The salary cost for these
employees is in excess of USD 6 billion every year. The company
estimates that around 10 per cent of these jobs will be outsourced in
the next five years, translating to 15,000 jobs in India. Indian
companies need to provide 100 per cent accuracy when it comes to
pension fund process.
To ensure the accuracy, six employees of Congruent have passed the
certification exams conducted by Chicago-based National Institute of
Pension Administrators (NIPA). Congruent Solutions has also established
an US subsidiary to address the growing potential in the US market.
Currently, Congruent employs over 80 people and the headcount will be
ramped up in the coming months, in line with the increased business.
By outsourcing productions to India, corporations are lowering costs
for consumers, keeping inflation low. This raises corporate returns on
capital and boosts share prices.
5. +++++++++++++++++++++++++++++++++++++++++++++++++++
http://www.informationweek.com/story/showArticle.jhtml?articleID=59200189
ACS To Open Second Operations Center In China
New center will add finance and accounting services to ACS's
business-process-outsourcing offerings in the Asia-Pacific region.
By Paul McDougall, InformationWeek
Jan. 31, 2005
Affiliated Computer Services Inc. on Monday said it will open a second
operations center in China with an eye to providing IT and
business-process-outsourcing services to customers in the Asia-Pacific
region.
The company said it will open the center in the city of Tianjin, near
Beijing. ACS expects to place about 200 staffers in the facility when
it becomes fully operational in the spring. ACS already operates a
large BPO center in Beijing, from which it provides human-resource
outsourcing services to Motorola Inc.
With the addition of the Tianjin center, ACS will add finance and
accounting services to the range of offerings it provides from China, a
company spokesman says. The Tianjin center also will be used to provide
IT outsourcing services. The spokesman says several ACS clients already
have agreed to have services delivered from the new center.
Many observers view China as the next big destination for IT and
business-process outsourcing. ACS operates two outsourcing centers in
India, and the spokesman says China will help the company diversify its
geographic base and service offerings. "India isn't the only place from
which we want to provide offshore services. There are other places with
other skill sets," says the spokesman. About one-third of ACS's 47,000
employees work from locations outside the United States.
6. +++++++++++++++++++++++++++++++++++++++++++++++++++
http://news.pacificnews.org/news/view_article.html?article_id=43167795b5279c1a5b8c223208907f27
Senator Backs Bush on Immigration
News Report, Rita Villadiego,
Filipino Express, Feb 03, 2005
NEW YORK--- As debate begins on the thorny issue of immigration reform,
Sen. John McCain (R-Arizona) expressed support for the guest worker
program proposed by President Bush.
"What Im saying is that in the case of the illegal immigration
problem, if we have a legal worker program, where people can come and
do jobs Americans wont do, and you could set up a mechanism to do
that," said McCain in an interview televised on PBS.
The senator said people should be able to do the work, stay on the job
if necessary, and go back home. "Theres no one who will pick lettuce
in Yuma today, so you have to have people come illegally to do that,"
he added.
McCain disapproves the granting of general amnesty being pushed by the
left, or the mass arrest of illegal immigrants being pushed by the
right. With the Hispanic community gaining a stronger voice, the issue
of legalizing immigrants has become a crucial issue in Washington.
McCain said despite increasing the number of agents on the border, in
the aftermath of September 11, aliens have continued to come illegally.
"If people will hire people who come here illegally, theyre going to
come here, because they cant feed themselves and their families
where they are," he added.
But David Frum of American Enterprise Institute said Bushs proposal
to legalize immigrants would put a downward pressure on wages. Frum
said employers who hire illegal immigrants must pay a higher fine and
economic pressures must be exerted on these companies to lessen illegal
immigration. Slowing the flow of illegal immigrants into the U.S. will
cut the supply of jobs available to them, he added.
But other commetators say illegal immigrants are highly motivated
people who perform back-breaking jobs despite low wages. "You take away
that pool of 15 million illegal workers, you have a huge impact on the
labor market. A hugely negative impact on the overall American
economy," Minton Bedodoes of the Economist magazine said.
It is estimated that 8 to 12 million undocumented immigrants work in
America today, mostly in agricultural farms, construction sites,
hotels, restaurants, homes and others work as day laborers. Their work
is considered essential to Americas economic health, immigrant
supporters believe.
These workers want to be legalized, to be out of the shadow of
oppressive working conditions, and enjoy legal workers rights.
The proposal of President Bush to grant temporary working permits to
illegal immigrants gives hope to these illegal workers.
"Every country has enormous problems with immigration. Its not easy
to solve, but you cant sit here and dismiss it as a political
conspiracy. You have to be constructive about that, and that means
getting off both sides of the ideological fence and coming up with
something that acknowledges reality and leads you forward in a way that
is sensible, morally justifiable and politically feasible," Bedodoes
said.
7. +++++++++++++++++++++++++++++++++++++++++++++++++++
http://www.indiadaily.com/editorial/01-31a-05.asp
Indian IT professionals still underpaid compared to the rest of the
world
Suniti Oberois, Special Correspondent
January 31, 2005
Sudeep Srivastav, experienced software engineer in Bangalore works for
a BPO outsourcing company and earns Rs 15 lakhs, which is equivalent to
US $33,000 per year. When he was working an H1B assignment in America
with an Indian company subcontracting him to a large American telecom
company, his billing rate was $120,000 per years and he was paid
$65,000 per year.
According to Sudeep, he is under paid in India and so are millions of
Indian software professionals working 10 to 12 hours a day working for
the agents of the Western companies. He got an offer from an American
company involved in enhancing engineering design software, but he
declined to join.
Based on recent salary survey, Indian IT professionals earn close to
$35,000 per year from American companies in India and $31,000 from the
Desi companies. But they are in general under paid based on what they
get even in Thailand or Singapore.
NASSCOM, the leading international lobbyist for Indian IT companies,
promotes Indian software companies but have little regard for the
earnings and working conditions of these Indian IT professionals.
According to many software industry think tanks, outsourcing software
contracts to India has worked negatively for both Indian and Western
Software Engineers. For example, it reduced remunerations for the
American IT professionals by 30 to 40%. The Indian who used to work in
H1B visa in America have mostly gone back to India and they receive 30
to 40% less than what they used to receive in America. The new Indian
IT professionals from the Universities earn even less.
You do not get $33,000 just like that. That kind of remuneration is
given to one in ten IT professionals in India" says Sudeeep.
What really has happened is that the IT outsourcing has given rise to
deflation in the IT industry. The software companies and tech sector in
general is really perplexed - they just do not know how to bring back
the pricing power. Microsoft for example is today no longer a growth
company with 4 to 5% growth per year. They also have focused on easy
path to success - using Indian software engineers to save money. But
according to international think tanks, the only way the software
industry can come out of this deflationary spiral is not to focus on
just cost saving but solving clients business related problems. It is
just not enough to come out with a new release or buy out the smaller
competitor like Oracle did, but it is the innovation of business
problem solving that will make a big difference.
8. +++++++++++++++++++++++++++++++++++++++++++++++++++
http://www.nysun.com/article/8223
Immigrants Nourish U.S. Business
Tea at the Four Seasons With: Allen E. Kaye
BY REGINA MCMENAMIN - Special to the Sun
January 25, 2005
It should come as no surprise that strutting into the Four Seasons
restaurant is like walking into the General Assembly of the United
Nations. In the lower lobby claiming their blizzard-tested overcoats
and sturdy briefcases from the coat check room is a metropolitan mix of
a business types from all over the world, including African diplomats,
Italian winemakers, Swiss bankers, a British journalist and a
particularly well dressed Dominican-born fashion designer among others.
It should come as no surprise that the Four Seasons lobby chatter is
unlike the English only conversations you'd eavesdrop in say Des Moines
because anyone in New York can tell tales of walking the streets of
Manhattan for blocks on end without hearing a word of English let alone
an American accent. This city, like so many cosmopolitan centers
throughout the world, is filled with all types: Indians, Mexicans,
Canadians, Filipinos, Bangladeshis and Brits among dozens if not
hundreds of other expat groups.
But despite yesterday's widely followed announcement that 43% of the
city's job force is made up of "newcomers," their euphemism for both
legal and illegal immigrants, the immigration story in New York is not
a new one. Immigrants created this country right here in New York City
where George Washington and company planned virtually every aspect of
our government down on Wall Street in the late 1780s. Over the
intervening 200 plus years, new batches of immigrants have built the
great skyscrapers and bridges that make New York's skyline one of the
most recognizable in the world.
You only have to be in the city for a few days to know New York is
still being refined and redefined by immigrants. We all hear our
schools are filled with foreign-born students grappling to learn
English. We all see our companies relying not only the manual labor of
third worlders, but also on the brains who were drained from their
homelands with their hearts set on finding a better life here in
Gotham. We know immigrants are here. We clamor for a reservation in the
great restaurants they have created. We cheer as we watch them wear
Yankee pinstripes for the first time. All of this is obvious to someone
who has been in the city for any time at all.
What isn't obvious is how the government manages the influx of
immigrants and how immigrants can gain permission to work here legally.
Sitting down in the Four Seasons Grill Room for an afternoon tea with
immigration attorney Allen E. Kaye, just as the restaurant's power
lunch ends, only serves to shed a glimmer of light onto what a mess
U.S. immigration law is. Just listening to the alphabet soup of visa
names is enough to convince someone that this is not a job for the
do-it-yourselfer. To understand the laws may be impossible, but to have
any hope of navigating a path through them definitely may take a
professional.
"There are two kinds of visas," Mr. Kaye begins. "There are visas for
immigrants, people who want to permanently live in the U.S. And there
are non-immigrant visas for people who want to work in the U.S. for a
period of time. In this category of non-immigrant visas, there are 17
different kinds, some for students, some for professionals, some for
agricultural workers, some for seasonal workers, some even for caviar
workers, thanks to an Alaskan congressman who secured a special
exemption for his constituency."
The H-1B is for professionals: doctors, lawyers, accountants, engineers
and doctors, "anyone with a job that requires a degree or the
equivalent," Mr. Kaye explains. Once limited to 195,000 workers per
year, since the end of the 2003 fiscal year they are capped at a mere
65,000 H1-B workers for the entire country. This quota is "not such a
great idea," Mr. Kaye sighs. Mr. Kaye points out that not only do New
York companies lose the opportunity to hire uniquely qualified, highly
educated workers in critical fields like information technology for
which not enough workers are home grown here in the U.S., he also notes
that universities lose valuable tuition revenues from foreign students,
who make up 50% of America's advanced degrees in mathematics,
engineering and sciences. "Yes they can come here to study and even
work for a year after they graduate, but after that they may have to
leave the country if the quota has already been reached. Do we really
want to educate them compete against U.S. from abroad? Isn't keeping
them here the perfect antidote to offshoring jobs?"
Acknowledging there are exemptions to the strict quota of 65,000 per
year, Mr. Kaye notes that there are "carve outs," immigration lingo for
classes of workers who do not count against the cap. They include
college and university professors, certain medical doctors, and
non-profit organizations, among others. But still he wishes the cap
were significantly increased to "165,000 or more," Mr. Kaye said over
the cup of peppermint tea he never sipped during his hour long
impassioned discussion.
How did this Queens College undergrad and Columbia Law School graduate
build a successful U.S. business specializing in immigration law?
It began with a client from India, "who wanted a green card," Mr. Kaye
recounted. "Working with him got me started writing for an Indian
newspaper, called India Abroad which is based in New York. For the last
25 years I've been writing a newspaper column for them every week for
52 weeks a year. Then I started doing a TV show that appeared on
Channel 47 which is a Spanish language TV station. One day a week they
opened up the station to non-Spanish language programming and we did a
show called "Immigration and You" which probably was the world's first
infomercial. This is going back to when lawyers didn't advertise. In
fact it wasn't an advertisement. It was more of a documentary. We did
all sorts of things, including creating mock deportation trails with
real judges all dressed in their robes. It became so real to our
viewers who soon visited me that some of the actors we hired to play
people with immigration problems were stopped on the streets on New
York City and asked how their cases turned out."
Today Mr. Kaye represents clients with a wide variety of immigration
problems, both employees and employers, though 75 to 80% of his clients
are Indian-born. At one point he even opened an office in Mumbai what
was then called Bombay and has visited there 14 times in last 25 years.
The first visit was the most enlightening. "We advertised that we were
hosting seminars about immigrating to the U.S. We did that one month in
advance, and then one week and then the day before. For the first
seminar 1,500 people showed up. They were everywhere: in seats,
standing up and crowded around the door ways. Then we learned that
Indian people will go anywhere to sit in air conditioning, so we
started charging an admission fee," Mr. Kaye explains. With the door
fee, the numbers shrunk considerably, but his practice grew
impressively.
Was it Mr. Kaye's hands-on 25-year relationship with the local
consulate that did the trick? Or was it his TV show that made him an
immigration legend in Indian communities? It's hard to say.
But on this bitterly cold, post-blizzard day in midtown, one thing is
for certain: as lunch time stragglers sat in the Four Seasons getting
ready to face the post-blizzard's whipping wind, the Four Seasons
manager, Indian-born Tri-deep Bose stopped to ask "was that Allen Kaye?
He's on television. I hear he's got a very successful practice."
9. +++++++++++++++++++++++++++++++++++++++++++++++++++
http://www.palmbeachpost.com/news/content/shared/news/nation/stories/0206_IMMIGRATION_BUSINESS.html
Guest worker plan will be tough sell for Bush
> By EUNICE MOSCOSO
>Cox News Service
> Monday, February 07, 2005
WASHINGTON - President Bush is once again pushing a plan that could
grant temporary work permits to millions of illegal workers, giving
immigration advocates new hope that it will become law.
"It is time for an immigration policy that permits temporary guest
workers to fill jobs Americans will not take, that rejects amnesty,
hat tells us who is entering and leaving our country, and that
closes the border to drug dealers and terrorists," Bush said Wednesday
in his State of the Union address.
But the plan still faces serious obstacles, including strong opposition
from a group of about 70 House conservatives led by Rep. Tom Tancredo,
R-Colo., who has called it a "pig with lipstick."
Bush plugged his plan in last year's State of the Union address as
well, but it went nowhere in Congress. Some observers say upcoming
political battles on Social Security and tax reform could sap
enthusiasm for the guest worker plan again this year.
Still, immigrant advocates, Hispanic groups, lawmakers and business
organizations say they are cautiously optimistic that a legalization
plan could win approval.
"If we do this right, it should be historic," said Cecilia Munoz, vice
president of the National Council of La Raza, a large and influential
Hispanic civil rights group.
"You can see the coalition that's prepared to support it," she said.
"The religious community of multiple denominations, a variety of ethnic
constituencies in the United States, the civil rights community, the
business community and the labor community ... the only people keeping
this from happening are people doing the fear-mongering."
The illegal immigrant population is estimated at 8 to 10 million,
mostly from Mexico and other Latin American countries. Of those, at
least 6 million are believed to be employed, many in hotels,
restaurants, landscaping, construction, domestic work, and agriculture.
The guest worker plan that Bush outlined last year would be the most
dramatic change in immigration policy since 1986.
It would give illegal immigrants already in the United States one
chance to register for legal permission to work for up to six years,
after which they would have to return to their home country. Companies
would have to prove that the jobs offered to the foreign workers could
not be filled by Americans.
Bush says the plan would improve national security by creating an
orderly immigration process that identifies people working in this
country and letting border enforcement agents focus on finding drug
traffickers and possible terrorists.
But Tancredo and other House conservatives - including Rep. James
Sensenbrenner, R-Wis., chairman of the House Judiciary Committee - are
staunchly opposed to any measure that would give legal status to
immigrants who broke the law by sneaking into the United States.
"The minute you do that, you have created amnesty," said Tancredo. In
addition, he said, Bush's plan would be unfair to millions of people
who are waiting to enter the country legally.
"We shouldn't tell them they're all suckers," he said.
The House members are trying to crack down on illegal immigration. A
Sensenbrenner bill that would tighten asylum laws and bar states from
granting drivers licenses to illegal aliens is expected to pass the
House as soon as this week.
They claim popular support, citing opinion polls showing that Americans
are increasingly concerned about illegal immigration and want the
government to stem the flow.
And in a nod to their power, backers of Bush's bill shun the word
amnesty, talking instead of "legalization" or "regularization."
The Senate, which has been historically more sympathetic to immigration
amnesty proposals, is considered an easier sell for Bush's guest worker
plan. Sen. John McCain, R-Ariz., a strong Bush ally on the issue, is
working on immigration legislation.
In addition, Sen. John Cornyn, R-Texas, is planning to reintroduce a
measure similar to Bush's plan.
Immigrant advocates are waiting for actual legislation before declaring
their full support.
"The devil is buried very deep in the detail," said Daryl Buffenstein,
an Atlanta immigration lawyer and former general counsel of the
American Immigration Lawyers Association.
Buffenstein said any immigration reform package must be comprehensive
and address the backlog of people waiting years for the "green cards"
showing they are legal residents.
In addition, Munoz said any plan would have to include some path to
permanent legal residency for the temporary workers.
Bush has said that his plan would not amount to "instant citizenship,"
but has offered few details of whether temporary workers would have a
special track to permanent residency.
Alcy De Souza, owner of a Washington restaurant called the Grill from
Ipanema, said a guest worker plan makes perfect sense.
"These are jobs that Americans don't want to do and don't have to do,"
he said. "They have bigger goals, like going to college. ... I have
never seen an American ask for a job as a dishwasher."
De Souza, a native of Brazil and a naturalized U.S. citizen, said he
has hired people from all over the world to work at his restaurant.
Several of his current employees are from El Salvador, which has a
special immigration deal with the United States allowing more temporary
work permits.
De Souza is planning to open a second restaurant and expects to hire
immigrants for nearly every position. He said a guest worker program
could allow him to bring specialty cooks from different regions in
Brazil to work at his restaurant for a few years, something not
possible under current law.
Mark Krikorian, president of the Center for Immigration Studies, a
group favoring tighter immigration laws, says most guest workers will
not want to return to their home countries.
A guest worker plan "assumes that we can use the labor of people and
then get rid of them. ... No guest worker program has ever succeeded in
doing that anywhere in the world," he said.
In addition, Krikorian said that Bush is risking a lot by pushing an
immigration plan that is at odds with the majority of the Republican
party.
"The president is emotionally committed to open immigration," he said.
"He is projecting his feelings for his gardener and his cook to all
immigrants."
"He views them as warm, genuine people and likes them. So anyone who is
critical of open immigration and calls for tough enforcement is being
un-Christian," Krikorian said. "This has become a moral issue for him."
Bush's push for a guest-worker bill is likely to stir the controversy
surrounding other visa programs. As businesses plead to expand them,
opponents charge that Americans are being displaced.
In December, Congress approved 20,000 additional work permits known as
H1-B visas designed to allow skilled specialty workers, such as
computer programers and nurses, to relieve labor shortages in the
United States.
It was the first increase since the cap was lowered from 195,000 to
65,000 in 2003 in an effort to favor unemployed U.S. technology
workers.
Harris Miller, president of the Information Technology Association of
America, said that his group will be aggressively pushing for more
visas after laying low for a few years after the dot-com bust.
"The economy is recovering," he said. "The unemployment rate is still
at a very reasonable level (and) companies are expanding again quite
rapidly, so we need to have access to global talent."
Another work permit for foreigners, the H2-B visa for low-skilled
seasonal workers in non-farming industries, has become increasingly
popular with employers.
The yearly cap of 66,000 for fiscal 2005 was met in just three months
on Jan. 3.
Businesses as diverse as clam farms on the East Coast and luxury
resorts in Florida are lobbying hard for more of the permits, saying
that they can't find American workers to fill thousands of jobs.
U.S. Citizenship and Immigration Services announced a proposal last
month to make it easier for businesses to apply for the permits, but
said that the yearly cap would stay the same.
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