9 Articles about H-1B and outsourcing
9 Articles about H-1B and outsourcing
Date: Friday, February 02, 2007 3:31 AM
<<<<< JOB DESTRUCTION NEWSLETTER No. 1633 -- 2/02/2007 >>>>>
Article 1:
http://www.indiadaily.com/editorial/15318.asp
It is time for Bush, Democrats and Republicans to stop H1B visas, illegal
immigration, outsourcing and exploitation of graduate foreign students in
Universities
[Comment from Rob: A great article and the biggest surprise is that it is
was published by IndiaDaily.]
Article 2:
http://www.eetimes.com/showArticle.jhtml?articleID=197000859
Avionics software outsourcing deal draws fire
An alliance between a U.S. embedded-software services company and an
Indian-based partner to outsource avionics software development is raising
flags among offshoring opponents, who question whether mission-critical
software should be written by international teams.
[Comment from Rob: The only sane thing about this article is the comments
from Norm Matloff.]
Article 3:
http://www.computerworld.com/action/article.do?command=viewArticleBasic&articleId=277393&pageNumber=1
Swimming in the Global Talent Pool
When he was a 16-year-old student, Jeff Kiiza would never have imagined
that 10 years later hed be writing code in Perl, PHP/MySQL and AJAX for
companies in the U.S., Canada, Australia and Spain -- and that hed be
doing it from his home in Cordoba, Argentina.
[Comment from Rob: This article has some very useful career information the
essential skills you need to compete in the new global economy. It explains
that you don't have to be young to get a programming job, but in today's
globalized economy you need to build your skills by running a blog on
cooking, or by podcasting your wife's rock band. Nowadays, according to the
experts in this article, the mere fact you have 15 years experience and can
program in several different languages matters a lot less than your
awareness of phishing and blogs. This article allows comments.]
Article 4:
http://news.bbc.co.uk/1/hi/business/6293349.stm
The global war for talent
In a dusty schoolroom on the outskirts of Bangalore, the battle for India's
future in a globalised world is being waged.
Article 5:
http://timesofindia.indiatimes.com/articleshow/1541032.cms?mailtofriend=1
H1-B quota likely to fill up in just 15 days this year
All of the 65,000 visas (which allow skilled foreign workers, including
Indians, to go to the US) will evaporate in 15 days."
[Comment from Rob: Employers are scarfing H-1B visas up faster than they
can be rubber stamped!]
Article 6:
http://www.ft.com/cms/s/4c491a7c-ab50-11db-b5db-0000779e2340.html
Indian outsourcing grows
India's export revenues from information technology outsourcing are on
track togrow by 32.6 per cent to $31bn this financial year, the industry's
top body said yesterday.
Article 7:
http://www.washingtonpost.com/wp-dyn/content/article/2007/01/22/AR2007012201325_pf.html
Rules Harm U.S. Fiscal Markets, Report Says
Wall Street Cited as Losing Global Clout
Cumbersome securities regulation and immigration restrictions are
diminishing the importance of the nation's financial markets, according to
a report by consulting firm McKinsey & Co. released yesterday.
[Comment from Rob: If this is to be believed, Wall Street will become a
ghost town unless the regulations on the stock market are relaxed, and
unlimited numbers of H-1B visas are allowed.]
Article 8:
http://www.dallasnews.com/sharedcontent/dws/bus/stories/012207dnbusvisas.3e445fa.html
High-tech firms set for fight over visas
They want Congress to raise limit on highly skilled workers
[Comment from Rob: IEEE-USA is still trying to push the idea that we could
solve the H-1B problem by handing out instant green cards to any foreigner
who wants to come to the USA to permanently take our jobs. With friends
like the IEEE, who needs enemies?]
Article 9:
http://news.thomasnet.com/IMT/archives/2007/01/immigrants_significant_role_in_united_states_tech_engineering_firms_study.html
Immigrants Become Founding Fathers
Foreign-born entrepreneurs were behind one in four U.S. technology and
engineering startups over the last decade, according to a new study on the
effects of globalization on the U.S. economy. The findings offer new
information into the debate over foreign workers and specialty visas.
[Comment from Rob: This article should win some kind of award for
"stupidest title". If that wasn't stupid enough, buried deep in the article
it says: "It is unknown how many of the immigrants who founded technology
companies had H-1B visas." So if nobody knows how many entrepreneurs had
H-1Bs, then why is the author putting them on a pedestal with George
Washington and Benjamin Franklin?]
1. +++++++++++++++++++++++++++++++++++++++++++++++++++
http://www.indiadaily.com/editorial/15318.asp
It is time for Bush, Democrats and Republicans to stop H1B visas, illegal
immigration, outsourcing and exploitation of graduate foreign students in
Universities
Special Correspondent
Jan. 28, 2007
No country has the right to exploit others. No one group of people can
exploit others for their own financial benefits. The outsourcing, H1B visas
and illegal immigration are equally bad. The illegal immigration helps
those small business owners (restaurants, cleaning service and so one). The
H1B helps large and medium size businesses in the field of using high tech
including healthcare and IT sectors. The abuse of international students by
the Universities is equally deplorable.
What is going on is a classic example of depriving basic rights to American
citizens -- the right to live a decent life in their own country America.
It is also associated with human rights abuse of foreign nationals who get
lured into the trap of having a better life. They come as H1Bs, foreign
students and the illegal aliens. Some stay in their own country and work
for outsourcing companies that deliver goods and services to American
companies.
There is not much difference between illegal immigration and H1Bs. Both are
corporate give outs by the Government to businesses that are inefficient,
refused to pay comparable wages, create unfair competition and should go
out of business. H1B visa and outsourcing are actually worse than illegal
immigration. H1B and outsourcing creates unfair wage depression in America
-- American citizens suffer at the cost of fattening Wall Street profits.
The illegal immigration must be stopped once for all. If a business has to
hire illegal immigrants to survive, it should really go out of business
because its business model in illegal. If a Government or a political part
has to support illegal immigration to stay in power or receive fat
political funding, there is a need for a new party that make the system
work for the People.
Exploitation of graduate foreign students in top American Universities is
sad. The professors in Engineering, Computer Science and some other
branches stop research after they attain tenure (job permanency). At that
point of time they prefer foreign students over American citizens because
it is easier to make a foreign students work day and night for some
meager assistantships. It is case of human rights abuse and illegal
discrimination against the American citizens. The foreign students pursuing
Masters and Ph.D are treated in the same way businesses treat illegal
immigrants. They do not have a place to go. They will be thrown out of the
country if they do not please their advising professor and the
dissertation committee. Business hiring illegal immigrants also knows that
these illegal aliens have no place to go unless they are illegally employed
by the business.
If an American citizen is refused admission to Graduate Program in
technical fields and foreign nationals in F1 and J1 visas are brought in
with free tuition and financial assistance, how can America ever attain
self-sufficiency in technical talent pool?
It is shame for any politician that pitches for illegal immigration, H1B
and outsourcing. There is a need for thorough audit how the Universities
are spending their funds on foreign aliens and discriminating against
American citizens.
There is not much difference between H1B visas, illegal immigration,
outsourcing and exploitation of graduate foreign students in Universities.
All of these deprive American citizens of their fundamental rights. All
these are sources of basic human rights abuse to the alien workers or
students.
It is a shame for businesses to . The fundamental premise of capitalism is
prosperity for the best. But that does not include cheating the American
citizens.
2. +++++++++++++++++++++++++++++++++++++++++++++++++++
URL: http://www.eetimes.com/showArticle.jhtml?articleID=197000859
Avionics software outsourcing deal draws fire
George Leopold
(01/29/2007 9:00 AM EST)
Washington -- An alliance between a U.S. embedded-software services company
and an Indian-based partner to outsource avionics software development is
raising flags among offshoring opponents, who question whether
mission-critical software should be written by international teams.
Avista Inc. (Platteville, Wis.) and Silver Software (Malmesbury, England)
last week announced an alliance they said would allow aircraft makers and
avionics companies to shift software development offshore while retaining
U.S.-based project management.
The partnership will "provide significant cost benefits" to aircraft
makers, said Avista president James Schneller. The larger the project, the
greater the savings, he added.
Norm Matloff, a computer science professor at the University of California
at Davis and a leading U.S. opponent of offshoring, said that overseas
development of avionics software is a bad idea. He also questioned whether
the alliance between Avista and Silver Software, which has a software
development facility in Bengaluru, India, would actually result in cost
savings. While aircraft makers and avionics contractors might benefit,
Matloff said, "the software costs amount to a minuscule portion of the
average airline ticket."
Avista's Schneller responded that outsourcing has long been used in the
aviation industry. "For decades, large aircraft manufacturers have worked
with outside contractors for various parts, software and systems--to
utilize specialized expertise and minimize overhead," he said. "Recently,
though, some aircraft manufacturers have actually started mandating that a
percentage of software work be done offshore to minimize costs."
It was this industry trend that prompted Avista to form its alliance with
Silver Software, Schneller said.
Avionics software development differs from embedded software in that it
must comply with government-mandated safety specifications (DO-178B
certification). The partners said this has made it difficult for aircraft
makers and avionics contractors to manage offshore avionics software
development.
"While offshore development offers considerable cost savings, there are
hidden risks that can be difficult to manage and program challenges that
impact product delivery time lines," Schneller said.
Founded in 1987, Avista claims to have taken on more than 750 projects that
meet DO-178B requirements. In most cases, 20 to 30 percent of a project
development team is based in the United States and the other 70 to 80
percent offshore, Schneller said.
Avista and Silver Software said their alliance aims to improve project
management for development teams working in different time zones while
monitoring quality and compliance with U.S. safety specs, documenting the
avionics software development process and improving communications between
U.S. managers and Indian-based developers.
Silver Software specializes in avionics domain expertise and has achieved a
Level 5 rating for offshore development capabilities from the U.S. Software
Engineering Institute's Capability Maturity Model Integration framework, a
widely used process improvement approach.
Matloff of UC Davis said it may not be feasible to have software developers
in India and managers in the United States. He cited recent moves by
companies like Cisco Systems Inc., which said it would move senior managers
to India "to be right where the software is being developed."
Avista currently works with leading aircraft makers like Boeing and key
avionics suppliers such as Rockwell Collins. It is also working with some
Airbus suppliers.
With the number of lines of embedded software code skyrocketing for new
aircraft like Boeing's 330-passenger 787 Dreamliner, Schneller said
avionics software is designed not only to increase a plane's functionality
but also to reduce weight. For example, Boeing has specified wireless
in-flight entertainment systems to reduce wiring costs and aircraft weight.
Weight savings from these avionics advances along with composite materials
and more fuel-efficient engines should translate into lower aviation fuel
costs for Boeing customers.
Rockwell-Collins and Honeywell are providing most of the flight control,
guidance and other avionics for Boeing's 787.
3. +++++++++++++++++++++++++++++++++++++++++++++++++++
http://www.computerworld.com/action/article.do?command=viewArticleBasic&articleId=277393&pageNumber=1
Swimming in the Global Talent Pool
Mary Brandel
January 15, 2007 (Computerworld) When he was a 16-year-old student, Jeff
Kiiza would never have imagined that 10 years later hed be writing code
in Perl, PHP/MySQL and AJAX for companies in the U.S., Canada, Australia
and Spain -- and that hed be doing it from his home in Cordoba,
Argentina. "Back then, it would have been a dream or science fiction," he
says. "But the availability of greater free-flowing bandwidth and companies
turning to the Internet have allowed it."
Hemang Dani lives in Mumbai but works for global clients.Hemang Dani is
pretty amazed that in the past six months, he has boosted his income to
$5,000 per month by working for companies in the U.S., the U.K., Germany
and Australia. Not bad, considering the low cost of living in his home city
of Mumbai, India. Danis projects range from coding "shopping carts" and
enabling credit-card processing on Web sites to managing portals as a
webmaster.
Dani and Kiiza have jumped with both feet into the global talent pool. Both
worked for overseas organizations even before they joined Menlo Park,
Calif.-based oDesk Corp.s online marketplace, which links programmers
with businesses that need their services. Kiiza coded for a university in
Tanzania, and Dani picked up work through GetaFreelancer.com, which is
owned by a Swedish company called Innovate IT.
And because there are more programmers like them every day in developing
parts of the world, IT professionals in the U.S. are now competing in the
global talent pool as well. While many U.S. companies today are still
hiring globally only when their need is short-lived or skills are scarce or
too high-priced in the local or domestic labor pool, some are going global
simply to find the best of the best, no matter where theyre located,
according to Kevin Wheeler, president of Global Learning Resources Inc., a
recruiting consulting firm in Fremont, Calif. "Cisco, Microsoft, Google --
these companies have clearly taken the position that theyre going where
the talent is," he says.
Companies such as MySQL AB dont care where employees live; they hire for
raw talent. The open-source software makers 320 employees reside in 25
countries, and 70% of them work from home, according to Steve Curry,
director of corporate communications at MySQL.
Even more-traditional companies like Henkel Corp., a consumer products
maker in Dusseldorf, Germany, are letting the work flow to the worker when
theyre in search of scarce talent. For instance, Henkels need for IT
professionals with experience in SAPs Advanced Planning and Optimizer
module prompted the company to extend its talent search outside of North
America and Western Europe, even though thats where the software is used
the most, says Amy Bloebaum, vice president and CIO at Henkel of America
Inc. "When were looking for a specialized skill thats in high demand,
were very flexible in terms of where the talent is located," she says.
With all that in mind, IT professionals in todays job market need to
begin preparing now to swim among the fresh schools of competitors in the
global talent pool. "If youre 45 and plan to work until youre 65,
youre going to be forced to embrace this," Wheeler says.
Keep Current
To play in the global game, you dont have to be young, but you do have
to exude what technology recruiter David Hayes calls "relevance." This
means having at least a basic understanding of some of the so-called Web
2.0 technologies that have emerged in the past few years, such as blogs,
wikis, podcasting and RSS feeds.
"The world has changed, and you can either change with it or get swept up
by it," says Hayes, president of HireMinds LLC in Cambridge, Mass. "On your
resume, if you dont talk about something you do thats connected to
one of these new spaces, you wont even be considered. So start running a
cooking blog or say you enjoy podcasting your wifes rock band."
Another key area to at least understand and perhaps participate in is the
open-source community. "Theres a belief system in there, and you have to
be able to express that," Hayes says of the open-source world. "If you want
to know whats going on in the world, participate in it."
Though this may not be easy for IT veterans, its a good way for them to
rejuvenate their careers, Wheeler says. "Ill talk to an IT guy with 15
years of experience who knows three or four different programming languages
and has really good system experience. Then I start talking about phishing
or blogs or PHP, and they look at me like, Huh?" he says. "I dont
expect you to do that stuff, but at least you should have heard of it."
IT professionals seeking to work on-site in a corporate setting also need
to hone their personal marketing messages, particularly about how they
bring value to the business. "Most of our customers want someone in their
physical office because it requires interaction with the business community
and a holistic connection to the business," says Hayes.
Unfortunately, this isnt what comes across in the bulk of the resumes
that Bloebaum sees. "Its very important for job candidates to convey how
they made a difference in their last job," she says. "When you read as many
resumes as I do, it becomes apparent very quickly which ones think of their
technology experience in a business context [and which] think in a
technology context."
Even IT professionals who pursue hot technology areas such as reusable
software components, service-oriented architecture or wireless applications
are practically unemployable if they cant meld that knowledge with how
its used, says Diane Morello, an analyst at Gartner Inc. For instance,
if you market yourself as an expert in reusable software, you also have to
convey your ability to synthesize information about business processes and
translate that into software modules, she says. "You need to take a larger
view than your own specific job -- whether its a global view, an
industry view or a process view," Morello says.
This, says Wheeler, is how IT professionals can show what he calls
"charisma." "So many people who have IT skills are technicians -- competent
executors of things like writing code," he says. "But when you talk to
recruiters and hiring managers, they want an IT person whos skilled but
has some edge -- some moxie or an understanding beyond just being a
technician."
Tables Turned
And U.S. companies are not the only ones looking for these intangible
traits. Indian firms such as Wipro Ltd., Tata Consultancy Services Ltd. and
Infosys Technologies Ltd. are recruiting workers overseas, including in the
U.S. At Infosys, for instance, the Global Talent Program looks for
graduates from top U.S. universities for software engineering positions.
Matt SorgeA key characteristic that Infosys seeks in candidates, according
to Bikramjit Maitra, vice president of human resource development at the
company, is "learnability." "We take people for their ability to learn, not
just for the specific knowledge they have," he says.
So far, 126 U.S. citizens have been hired to undergo such training in
India. One of these is 24-year-old Matt Sorge, a mechanical engineering
graduate of MIT. "In the interview, I spoke a lot about the fact that I
worked at two to three jobs that were fast-changing and dynamic and that I
had to learn on the spot to contribute to the common goal each day," he
says. "They were looking for that type of individual because information
technology is changing every day, and they dont need people who are
stagnant."
Its a trait that Sorge notices not only among the software engineers he
meets in India but also in many employees, from the instructors at Infosys
to the maintenance people in the hotel he stays in. "Everybody here is
extremely motivated and willing to be here until the job is done," he says.
Sorges time in India will also help him as employers increasingly look
for candidates with multicultural experience and the ability to work on
global teams. "Im not saying we wont hire people with experience in
[just] one business, one function or one country," Bloebaum says, "but
its quite important for people who come from a variety of skills and
backgrounds to make up the IT organization."
The preferred candidate is willing to work within a global model, says John
Dubiel, who was recently hired to be a U.S.-based practice director at Tata
Consultancy Services North America. "Employers want people who understand
different work models, like offshore models, or where your team is in
multiple geographic locations outside the U.S.," he says.
It also includes having an open mind about your source of employment.
"People in the U.K. and Europe are much more accustomed to working for
multinationals [with overseas headquarters] than Americans are," Morello
says. "Its a difference between parochial thinking and global thinking
-- that global doesnt necessarily mean Western."
Dubiel says a companys location will matter even less over the next five
years. "Pretty soon, the issue of whether I work for a U.S. or Indian
company will be irrelevant," he says. "All these companies that offer
services are pretty much the same; only the headquarters will change."
When that happens, it will become more important than ever for IT
professionals to grab hold of their careers and start steering them. "Many
people sleepwalk through their careers," Morello says, "but even older
programmers can expand themselves to look at other aspects of knowledge
they possess and make it part of the living, breathing experience they
offer to a company."
Brandel is a Computerworld contributing writer. Contact her at
marybrandel@verizon.net.
4. +++++++++++++++++++++++++++++++++++++++++++++++++++
http://news.bbc.co.uk/1/hi/business/6293349.stm
The global war for talent
By Steve Schifferes
Economics reporter, BBC News, Bangalore
In a dusty schoolroom on the outskirts of Bangalore, the battle for India's
future in a globalised world is being waged.
Forty-five schoolchildren in year five (10-11 years old) cluster around 15
computers, helped by a young classroom assistant.
The 800 children in the GM primary school in Hebagodi get only one
45-minute-a-week period in the computer room - and even then they have to
share, three to a computer.
Many of them come from poor homes where their parents are day labourers,
and where the homes, far from having computers, may not even have
electricity.
But their classroom assistant, Lakshami, says that there is never any
trouble getting the kids to come to this class. Using the computers is
always their favourite activity, and they are already surprisingly adept at
it.
GLOBALISATION SERIES
A series on India's world class IT outsourcing industry
Friday: Outsourcing journalism
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They play special educational computer games provided by the Premji
foundation (a charity set up by the owner of one of India's biggest IT
services firms, Wipro).
She herself escaped from her role in the old economy, as a garment worker
in Bangalore, when the Premji foundation paid for her to look after the
computer classroom.
She says that, despite their poor backgrounds, when she asks the children
what they want to do when they grow up, there is only one answer.
They all want to be software engineers and join the glittering world of
Bangalore's hi-tech giants.
India's challenge
India's global leadership in the IT services industry, centred on
Bangalore, is based on its rich human resources.
The country's 400,000 graduates in science and engineering each year - more
than any other country in the world - give India a competitive advantage.
But with the global outsourcing industry still growing at breakneck speed,
the Indian industry is worried about whether there will be enough skilled
Indian software engineers in the future.
Nasscom, the Indian software industry association, estimates that by 2010,
the Indian outsourcing industry could have $60bn worth of global sales, up
from $23bn in 2006 - and that would still only be 10% of the potential
market.
But if the industry is to triple its revenues, urgent action is needed now
to increase the supply of skilled labour, Nasscom says.
It wants the government to provide more engineering places at university,
and it has started its own scheme for an India-wide certification of IT
qualifications.
Pressure on turnover
The tight labour market is already taking its toll on the industry.
The big three Indian software companies alone (Infosys, Wipro, and TCS) are
looking to hire 100,000 new graduates this year, as their businesses
continue to grow by 30% annually.
The problem is not so much hiring the skilled IT workers - Infosys gets 1.4
million applications a year, and can pick and choose - as retaining them
after they have started.
As foreign multinationals continue to flood into India, the competition for
experienced IT professionals is heating up.
Companies such as IBM Cap Gemini and Accenture, the main rivals to the
Bangalore tigers, plan to transfer the bulk of their worldwide operations
to India in the next few years and are desperate to hire staff.
Turnover rates at Infosys and Wipro are about 12%-15% a year - still lower
than the Indian average, but rising steadily.
And to retain existing staff, Wipro has had to raise wages twice this year,
by more than 20%.
Wipro's chairman, Azim Premji, says he is not worried - his company offers
better opportunities than the foreign multinationals.
But industry analysts wonder whether the rising wage bill will eventually
make Indian software companies uncompetitive in the world market. After
all, lower labour costs are what gave them their initial advantage.
The Indian companies answer that it is their global production systems and
their skills, not low wages, that give them comparative advantage.
But they are also hedging their bets.
All the Bangalore tigers have set up development centres in China, where
they can employ software engineers for considerably less than they are
currently paying their Indian staff.
The poverty challenge
In the long run, India's ability to expand its supply of IT engineers
depends on improvements to basic education.
India's primary education system is still weak, especially in rural areas,
where many girls drop out before completing school.
One third of all Indians are illiterate - and one half of all women.
The Indian government has pledged to make universal primary education
available to all by 2040.
However, there are big regional differences.
The prosperous southern states like Karnataka, home of Bangalore, are well
on their way to this goal, aided by donations from the Premji foundation.
But the numbers staying on in school, and literacy rates, are much lower in
the poverty-striken Northern states such as Bihar and Rajathstan..
Secret weapon: B2B
At the other end of the educational scale, India's universities, while good
at producing undergraduates, are weak at post-graduate education.
India has few PhD programmes in computer sciences, which means that many go
abroad to study in the US or Europe - and often stay on.
But now, the Bangalore IT boom has persuaded many of them to return home.
Bangalore's city commissioner estimates that 40,000 non-resident Indians
(NRI) have returned to Bangalore.
While they make up less than 10% of the IT workforce in the city, these B2B
(Back to Bangalore) professionals often assume key roles in their
organisations.
For example, Srini Rajam says that his highly successful start-up company,
Ittiam, which is at the cutting edge of developing software for global
consumer product firms such as Sony and Toshiba, is heavily dependent on
attracting NRIs.
That is one of the main reasons he has been able to increase his staff from
eight to 100 since 2001.
The presence of so many NRIs - many of whom come over initially on contract
so that they can retain their higher, Western salary - has added pressure
to salary levels at the top of Indian software companies, and the
differential between Indian and Western rates of pay are narrowing.
The Future
The best and brightest computer students in India are now flocking to
Bangalore's newest university, the International Institute for Information
Technology (iiiT-B).
Set up with support from Infosys and other hi-tech companies, the iiiT-B
aims to train Indian graduate students to world-class standards.
Its class of 120 students each year works closely with industry in one of
the institute's labs, on projects such as IP multimedia (run with Hewlett
Packard) or wireless networking.
Its highly ambitious young students are clear that they are competing in a
global marketplace and their horizons are the world, not the Infosys campus
across the road.
Among them is Megha Saini, aged 23. She is a final year student at iiiT-B
and has won an internship to study at University of Trento, Italy in the
winter term.
She says there is only one lab in the world where she wants to work - IBM's
Toronto research facility.
"I am looking forward to apply the concepts of Multi-Agent Systems (my
current area of research and this area is technically related to Artificial
Intelligence concepts) to Autonomous Computing so that I get an opportunity
to work in IBM Toronto," she told the BBC.
"I wrote a paper that got selected in AAAI Spring Symposium to be conducted
at Stanford University which I am hoping to show to IBM researchers."
If these young people indeed represent India's future, then the West does
have something to worry about after all.
5. +++++++++++++++++++++++++++++++++++++++++++++++++++
http://timesofindia.indiatimes.com/articleshow/1541032.cms?mailtofriend=1
H1-B quota likely to fill up in just 15 days this year
Sujit John & Mini Joseph Tejaswi
[ 31 Jan, 2007 0028hrs ISTTIMES NEWS NETWORK ]
BANGALORE: The rush for H-1B visas this year could be like never before.
Two years ago, the H-1B quota finished on August 9, 2005. Last year it
finished on May 25.
This year, with the US economy still growing strongly, it is expected that
the quota, which opens for filing of applications on April 1, will finish
around April 15.
In other words, as Navneet S Chugh, attorney with the Chugh Firm, US, says,
"All of the 65,000 visas (which allow skilled foreign workers, including
Indians, to go to the US) will evaporate in 15 days."
Chugh's firm is telling its clients that "it is imperative that we have all
our H-1B petitions ready to go and file them special delivery on April 1."
TOI spoke to several technology firms who said they are busy finalising the
names and number of their employees, who would be travelling to US.
6. +++++++++++++++++++++++++++++++++++++++++++++++++++
http://www.ft.com/cms/s/4c491a7c-ab50-11db-b5db-0000779e2340.html
Indian outsourcing grows
By Joe Leahy in Mumbai
Published: January 24 2007 02:00 | Last updated: January 24 2007 02:00
India's export revenues from information technology outsourcing are on
track togrow by 32.6 per cent to $31bn this financial year, the industry's
top body said yesterday.
The figures show that the outsourcing of functions - ranging from computer
systems integration to mortgage processing and drafting of legal documents
- by US and European companies is showing no signs of abating.
Kiran Karnik, president of the National Association of Software and Service
Companies, said: "We are confident the industry will achieve its ambitious
target of $60bn in exports in 2010."
The body said the IT sector, including the domestic hardware and software
industries, was expected to generate total annual sales of $47.8bn in the
year ending March, 10 times the levels of a decade ago.
India's outsourcing companies - led by Tata Consultancy Services, Infosys
Technologies and Wipro - have reported double-digit earnings growth this
year as they continue to penetrate the traditional markets of their western
competitors.
The size of their average contracts is getting bigger, with Indian
companies now accounting for 7 per cent of global IT contracts worth $50m
or more, up from 1 per cent in 2002. But the industry is facing a skills
shortage as other areas of India's rapidly growing economy, such as
construction, telecommunications and financial services, compete for the
same talent.
Nasscom expected employment in the sector to be greater than 1.6m in the
current financial year, compared with 1.28m a year earlier.
The sector also faces problems with physical infrastructure in Bangalore,
the IT capital, and rising property prices are causing software and call
centre companies to look at second-tier cities as potential locations to
expand their operations.
7. +++++++++++++++++++++++++++++++++++++++++++++++++++
http://www.washingtonpost.com/wp-dyn/content/article/2007/01/22/AR2007012201325_pf.html
Rules Harm U.S. Fiscal Markets, Report Says
Wall Street Cited as Losing Global Clout
By Tomoeh Murakami Tse
Washington Post Staff Writer
Tuesday, January 23, 2007; D08
Cumbersome securities regulation and immigration restrictions are
diminishing the importance of the nation's financial markets, according to
a report by consulting firm McKinsey & Co. released yesterday.
New York City Mayor Michael R. Bloomberg (R) and Sen. Charles E. Schumer
(D-N.Y.), who commissioned the report, warned that the country's financial
markets would be reduced to a mere regional financial center within a
decade if certain government rules are not relaxed.
The report said there is "an urgent need for concerted but balanced action"
at the national, state and local levels to enhance the competitiveness of
the U.S. financial markets and "defend New York's role as a global
financial center."
The report, "Sustaining New York's and the U.S.'s Global Financial Services
Leadership,'' is one of several studies conducted as concern grows that the
nation is losing its standing as global leader in finance. The report is
based on interviews with more than 50 chief executives in the financial
services industry and online surveys of hundreds of senior executives. The
consulting firm also spoke with investor, labor and consumer groups.
Some are skeptical of the notion that the United States is losing its
financial edge. "Financial regulation may scare some businesses away, but
for many investors, it offers an extra measure of protection that makes it
a competitive plus," said Amy Borrus, deputy director of the Council of
Institutional Investors. "At a time when Wall Street firms are doling out
platinum-plated bonuses, it's hard to believe New York could be losing its
ability to attract and keep skilled financial professionals."
According to the report, Europe is gaining on the United States in revenue
from the lucrative investment banking and trading businesses. The U.S.
exchanges' share of initial public offerings has dwindled while those of
its European and Asian counterparts have jumped. Europe's revenue from
derivatives already trumps that of the United States.
At a news conference yesterday in Manhattan, Bloomberg and Schumer noted
that the issue extends beyond New York and the financial services industry.
Bloomberg and Schumer were bolstered by the presence of New York Gov. Eliot
L. Spitzer, who as the state's attorney general made headlines going after
corporate giants on Wall Street. One out of every nine people in New York
City and one out of every 19 people in the country are employed by the
financial services sector, the report said.
The 145-page, $600,000 report emphasized immigration policy as a potential
threat to New York City's high-quality workforce. U.S. immigration laws,
such as caps on H-1B visas for skilled workers, are making it harder for
foreigners to move to the country, the report said. While London's
financial services sector grew by 4.3 percent from 2002 to 2005, New York
City's fell by 0.7 percent, a loss of more than 2,000 jobs.
The McKinsey report made a number of recommendations, ranging from easing
immigration standards for skilled foreign workers to looking into the
creation of an international financial services zone in New York that would
offer tax incentives to businesses.
8. +++++++++++++++++++++++++++++++++++++++++++++++++++
http://www.dallasnews.com/sharedcontent/dws/bus/stories/012207dnbusvisas.3e445fa.html
High-tech firms set for fight over visas
They want Congress to raise limit on highly skilled workers
08:44 AM CST on Monday, January 22, 2007
Cox News Service
WASHINGTON High-tech companies and other businesses are planning a
full-court press to get Congress to increase the yearly allotment of H-1B
visas for highly skilled foreign workers.
The current cap of 65,000 visas was met months before the start of the
current fiscal year, leaving thousands of applications unanswered and
companies without needed workers, proponents said.
"There is a very serious shortage of qualified tech workers. Because of
that, companies have to recruit wherever they can," said Jeff Lande, senior
vice president of the Information Technology Association of America, which
represents more than 300 companies.
"We really see this as a competitiveness issue. Just as we're keeping
people from coming to the states to work for U.S. companies, almost every
other country in the world is trying to attract this talent," he said.
Mr. Lande said he is "cautiously optimistic" that a bill to increase the
cap of H-1B visas will pass in the Democratic-controlled Congress this
year.
But opponents pledge to fight the legislation.
"There are many flaws in the H-1B program," including weak prevailing wage
guidelines and limited enforcement mechanisms, said John Meredith,
president of IEEE-USA, a unit of the Institute of Electrical and
Electronics Engineers Inc.
"It depresses wages for American workers. It hurts the visa holder as well,
because some of the workers are taken advantage of," he said.
The group believes that permanent immigration of skilled scientists and
engineers is a better way for U.S. companies to stay competitive.
The number of H-1B visas allowed by law has fluctuated in recent years in
response to the U.S. economy and the highs and lows of the technology
industry, and is now set by Congress at 65,000.
In addition, 20,000 more foreign citizens with advanced degrees from
American universities are allowed to stay and work in the U.S.
The visas allow companies to bring in foreign workers for three years, with
an option to renew for another three. Companies must show that they cannot
find Americans to fill the positions, and they must pay the foreign workers
the prevailing wage for the type of job requested.
About half of the visas are taken up by technology and engineering
companies, Mr. Lande said. The rest are used by a combination of other
professions such as nurses, college professors and even fashion models, he
said.
In the last Congress, Sen. John Cornyn, R-Texas, sponsored a bill that
would have increased the cap to 115,000 with the possibility of further
increases, but the measure went nowhere.
Brian Walsh, a spokesman for Mr. Cornyn, said that no decision has been
made on H-1B levels that might be included in future legislation and that
Mr. Cornyn will talk to colleges across the country about their needs.
"Our universities are now graduating highly educated people who are forced
to go to work for our competitors abroad because we don't have the proper
immigration policies in place to retain them," Mr. Walsh said.
9. +++++++++++++++++++++++++++++++++++++++++++++++++++
http://news.thomasnet.com/IMT/archives/2007/01/immigrants_significant_role_in_united_states_tech_engineering_firms_study.html
January 16, 2007
Immigrants Become Founding Fathers
By David R. Butcher
Foreign-born entrepreneurs were behind one in four U.S. technology and
engineering startups over the last decade, according to a new study on the
effects of globalization on the U.S. economy. The findings offer new
information into the debate over foreign workers and specialty visas.
Before 1882, anyone could move to the United States. As the population
grew, however, the federal government decided to control immigration.
Throughout most of the 20th century, the federal government fine-tuned its
immigration policies to answer specific concerns of its citizens.
In recent years, an increasing number of Americans have come to believe
that immigrants are overwhelming the country, particularly when it comes to
jobs. In all of the heated debate over foreign workers and visas, the
immigration issue is often painted with one broad stroke.
A new study, released last week, throws new information into the debate
over foreign workers who arrive in the U.S. on such specialty visas.
The report, based on telephone surveys with 2,054 companies and projections
by researchers at the University of California at Berkeley and Duke
University, says about 25 percent of the technology and engineering
companies launched in the U.S. in the past decade had at least one
foreign-born founder.
Immigrants were most likely to start companies in the semiconductor,
communications and software niches; they were least likely to enter the
defense sector. California led the nation, with foreign-born entrepreneurs
founding 39 percent of startups, compared to 25 percent of the states
population. In New Jersey, 38 percent of tech startups were founded by
immigrants, followed by Michigan (33 percent), Georgia (30 percent),
Virginia (29 percent) and Massachusetts (29 percent).
An introduction to the report asserted that debate over "unskilled" illegal
immigrants has clouded the importance of immigration on the U.S. economy.
"Overlooked in the debate are the hundreds of thousands of skilled
immigrants who annually enter the country legally," the report reads.
The study, which comes nearly eight years after an influential UC-Berkeley
report on the impact of foreign-born entrepreneurs, notes that, of an
estimated 7,300 U.S. tech startups founded by immigrants, 26 percent have
Indian founders, CEOs, presidents or head researchers. Indian immigrants
founded more tech startups from 1995 to 2005 than people from the four next
biggest sources -- United Kingdom, China, Taiwan and Japan -- combined.
Further, Indians emerged as the dominant entrepreneurs in Silicon Valley.
In AnnaLee Saxenian's 1999 study, Chinese immigrants dominated. Saxenian,
now dean of the School of Information at UC-Berkeley, was also co-author of
the new study.
Immigrants contributions to corporate coffers, employment and U.S.
competitiveness in the global technology sector offer a counterpoint to the
ongoing political and industry debate over immigration and the economy,
which largely centers on unskilled, illegal workers in low-wage jobs.
"Its one thing if your gardener gets deported," said the studys lead
author, Vivek Wadhwa, a Delhi-born former technology executive who
immigrated from India with his family as a young man. "But if these
entrepreneurs leave, we're really denting our intellectual property
creation."
In fact, tech industry lobbyists have already cited the study in a push to
persuade Congress to increase the annual allotment of H-1B visas, which
allow U.S. companies to sponsor temporary workers in specialty occupations
such as computer programming and systems analysis. The companies say they
cannot find enough Americans to fill jobs; other proponents contend that
globalization requires U.S. companies to import talented workers.
"This research shows that immigrants have become a significant driving
force in the creation of new businesses and intellectual property in the
U.S. -- and that their contributions have increased over the past decade,"
wrote Wadhwa.
Saxenian said the research debunks the notion that immigrants who come to
the U.S. take jobs from Americans, as the report found that immigrants --
mostly from India and China -- helped start hundreds of companies in the
U.S., generating $52 billion in sales and employing 450,000 workers in
2005.
"The advantage of entrepreneurs is that they're generally creating new
opportunities and new wealth that didn't even exist before them," Saxenian
said. "Just by leaving your home country, you're taking a risk, and that
means you're willing to take risks in business.
"You put them in an environment that supports entrepreneurship, and this is
the logical outcome."
Last year, the industry raised the issue in the national debate over
immigration reform, but Congress ended its session without acting on the
Securing Knowledge, Innovation and Leadership Act.
The bill would increase the annual quota on the H-1B visas to 115,000 from
65,000, eliminate green-card caps for some advanced-degree holders and
streamline the processing of employment-based green cards. Tech lobbyists
want to revive it.
It is unknown how many of the immigrants who founded technology companies
had H-1B visas.
The study also looked at founders of engineering and technology companies
started from 1995 to 2005, and analyzed the World Intellectual Property
Organization Patent Cooperation Treaty database. The researchers found that
foreign-born inventors living in the U.S. without citizenship accounted for
24 percent of patent filings last year, compared with 7.3 percent in 1998.
Without permanent citizenship, inventors are more likely to take valuable
intellectual property elsewhere -- and U.S. companies would have to compete
with them, Wadhwa said.
"The bottom line is: Why arent these people citizens?" Wadhwa said.
"We're giving away the keys to the kingdom. This is a big, big deal once
you figure out what this means for us competitiveness."
The report concludes by suggesting that understanding the importance of
skilled immigrants in the U.S. economy is essential to "maintaining U.S.
competitiveness in a global economy."
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