H1B - key biz tool for Indian IT firms

Date: Monday, May 19, 2003 6:28 PM

JOB DESTRUCTION NEWSLETTER

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According to this writer, H-1B is popularly known as the Indian IT
worker visa. The comment that H-1B physiotherapists and nurses being
mainly from the UK and Japan could be wrong. Most H-1B nurses come from
the Phillipines and that was probably true in 1995.

The statement that "among the top H1B requestors, are leading Indian
companies such as TCS, Satyam, Infosys and Wipro" could be somewhat
misleading. While these bodyshops might be India's top requestors, the
number of visas from American companies dwarf their total number of
H-1Bs.

India's newspapers should be admired for their understanding of why
H-1Bs are so desired by U.S. companies - they will work for less.
Conversely they rarely mention the indentured aspects of H-1B that
employers value.

http://www.thehindubusinessline.com/bline/2003/03/05/stories/2003030501610700.htm

`H1B, key biz tool for Indian IT firms'

Anjali Prayag

BANGALORE, March 4

WHAT is well known and discussed threadbare is India's competitive
advantage in the IT sector because of its technically trained and
English- speaking workforce. And, of course, its willingness to work
for lower salaries.

But it's interesting to study how India took advantage of the US
immigration laws to push as many of its engineers into the country as
possible, says Dr Ron Hira, Post Doctoral Fellow, Centre for Science,
Policy and Outcomes, Columbia University.

He was speaking on the impact of onsite labour on the development of
the Indian IT industry at a global workshop on `Learning from the
Indian development experience in ICT (information, communication and
technology),' at the Indian Institute of Science, Bangalore.

Interestingly, in 1995, therapists (physiotherapists and nurses) were a
major group of H1B requestors (mainly from the UK and Japan) to the US
Department of Labour. But by the year 1998, computer specialists had
chewed the major bite of the H1B pie (57 per cent) while therapists
were left with just 14 per cent.

The H1B, popularly known as the Indian IT worker visa, enables about a
lakh software professionals to gain entry into the US. In the year
2001, India was the highest applicant in the H1B category. And among
the top H1B requestors, are leading Indian companies such as TCS,
Satyam, Infosys and Wipro.

In a comparative study of five companies, (two American and three
Indian), Dr Hira found that in the year 2001, while the US-based
Electronic Data Systems and American Management Systems had between
them requested for just about 700 LCAs (labour condition application,
which is necessary for H1B), three Indian software giants, Wipro, Tata
Consultancy Services and Satyam had sought 23,700 LCAs.

And the LCA wages for the American companies just formed about 0.15 per
cent of their total revenues, while in the case of Indian companies the
LCA wages were anywhere between 38 per cent and 70 per cent of the
total revenues.

"This demonstrates that utilising the H1B is a critical business
strategy for Indian IT firms while it is just one of the tools used by
the US firms," says Dr Hira, adding, "And 61-65 per cent of the total
annual revenue from the US clients are directly attributable to
temporary visa personnel."

But with the unemployment rates of electrical engineers (4.2 per cent)
and computer engineers (5 per cent) in the US rising to 4.2 per cent
and five per cent, respectively in the year 2002, it might influence
the decision this year on putting a cap on H1B visas, feels Dr Hira.

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