The 50/50 Rule for H-1B Visas Could Lead to More U.S. IT Jobs
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A recent CIO.com article on how one Indian outsourcing company is watching pending visa legislation shines a light on the challenges faced when economies go sour, politicians become more protectionist and growing businesses expand their foothold in the United States, yet have a large foreign-worker presence here. A rule known as the 50/50 rule in a piece of 2009 Senate legislation (as well as a clause in the House in the Comprehensive Immigration Reform ASAP Act of 2009) seeks to balance out the numbers of foreign workers and U.S. workers in companies that employ more than 50 U.S.-based employees. If a company is using H-1B or L-1 visa workers or both, the legislation would limit the number of those workers to no more than 50 percent of the company's U.S.-based workforce. For a company like Patni Computer Systems, based in Mumbai, India, its ever-expanding North American presence is having a difficult time predicting what countries its workforce will be coming from in the future. Roughly 2,300 of its 14,000 employees are based in locations in Massachusetts, Texas, Indiana and California. The company is growing, but the 50/50 rule could be a challenging one to its bottom line, as service provider businesses make money on labor margins. With a larger pool of American technology workers available due to the recession, this could be the right time to be working for an offshore-based company. The president of Patni Americas, Naresh Lakhanpal, told CIO.com the company plans to increase its American workforce.
The House clause and Senate bill have not been brought to a vote yet. |
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Comments (5)
So I guess the cheap labor lobby is LYING when they say that there are not enough Americans to fill these jobs, correct? This article from eweek http://www.eweek.com/c/a/IT-Management/H1B-Workers-Earn-More-Than-US-Workers-Finds-Study-365625/ must also be complete hogwash since "service provider businesses make money on labor margins". This move by Patni (among other outsourcing companies) proves how this visa is simply used as a vehicle to import cheap labor.
Posted by P Henry | June 21, 2010 2:33 PM
I'd be happy if the cross-border body shops and US STEM executives (business and academia) and immigration lawyers would merely stop protecting foreign workers against US competition.
Posted by jgo | June 21, 2010 4:13 PM
How will "such a restriction would decrease offshore outsourcers' margins or drive up their costs"???
Are you saying that H-1Bs and L-1s are cheaper than U.S. workers??
Posted by Maria | June 21, 2010 4:53 PM
Guess it's too much to ask that jobs in America be done by Americans. If a business doesn't want to use Americans, then do it elsewhere.
Posted by Anon | June 22, 2010 12:45 PM
This is rather feeble legistlation. I challenge you to find any other country that so willingly gives its jobs away to foreigners, whether it's via the visa program,condoning of illegal immigration, or "free trade." For people to argue that this flimsy 50/50 legistlation is "protectionist" is absurd.
Posted by Bob | June 22, 2010 6:21 PM