India's IT firms hire U.S. workers as they fight for visas
Nasscom says Indian IT firm employment growing in U.S.
Computerworld - India's IT services providers have been lobbying for better access to U.S. work visas by telling U.S. officials, in part, that they are hiring more American workers.
India's effort to gain unfettered access to work visas faces increasing obstacles. Congress recently raised the H-1B filing fees by $2,000. Moreover, U.S. immigration authorities routinely delay visas with paperwork requests, and they're denying more L-1 and H-1B visa applications than they have in the past.
Part of the effort to turn around U.S. perspectives on this issue involves promoting India as an American job creator.
India's largest IT trade group, citing figures from a study it commissioned, says the Indian IT industry employs 107,000 people in the U.S., almost twice the 56,000 it employed in 2006. Of that latest number, 35,000 are U.S. citizens or permanent residents. The remaining 72,000 are holders of either H-1B or L-1 work visas, according to the New Delhi-based National Association of Software and Services Companies (Nasscom).
And those are just directly created jobs. The Indian trade group further claimed that Indian IT companies have directly and indirectly created a total of 280,000 U.S. jobs.
India's IT companies are increasing their U.S. employment because the types of services they deliver are changing, according to industry representatives and U.S. analysts.
MindTree Ltd. is an example. It employs about 11,000 people worldwide, including about 850 in the U.S., and it plans to increase its U.S. hiring. Most of MindTree's U.S. workers aren't on visas, said Scott Staples, president of the Americas division of the company, which is co-headquartered in Warren, N.J., and Bangalore, India.
MindTree said on Tuesday that it's opening a development center in Gainesville, Fla., that will hire about 400 people over the next five years. The company chose that location, in part, because of its proximity to the University of Florida and because of the strength of the local labor market, said Staples.
He said MindTree needs an expanded U.S. presence because development work is increasingly becoming domain-specific, such as promotion management. "We are doing a lot of analytics work, and you need to have folks on site," said Staples.
Many of India's IT services providers are gigantic companies. For example, Infosys employs 145,000 people, Wipro has 137,000 workers, and Tata Consultancy Services employs 227,000.
Stephanie Moore, an analyst at Forrester Research, agreed that Indian companies have to increase their presence in the U.S., because of the "need for contextual knowledge" -- the ability to understand how IT systems fit into the business.
But Nasscom's solution -- asking the U.S. "to ease the visa restrictions" so companies can bring more foreign workers into this country -- isn't the right answer, said Moore. Bringing in L-1 workers who are exempt from prevailing wages "allows [Indian employers] to undercut U.S. citizens," she said.
Moore believes Indian companies should be investing in training centers in the U.S. "The measly 35,000 [U.S.] jobs that these multibillion-dollar behemoths have built over the past 10 years are completely negated by the jobs that we have lost," said Moore.
- H-1B applications surge to 172,500, twice the cap
- U.S. hits H-1B cap with 'high number' of petitions
- Durbin warns Republicans standalone H-1B hike plan will fail
- Offshore firms took 50% of H-1B visas in 2013
- H-1B visas produce net IT job boost, trade group says
- Gates sees software replacing people; Greenspan calls for more H-1Bs
- Use of H-1B alternative skyrockets
- GOP presses ahead on H-1B, green cards with vague, muddy statement
- 5 reasons why your IT job search is getting harder
- Professors warn that grads could face competition from H-1B workers
- Why Projects Fail CIOs are expected to deliver more projects that transform business, and do so on time, on budget and with limited resources.
- The New Business Case for Video Conferencing: 7 Real-World Benefits Beyond Cost-Savings This whitepaper provides insight into the value of video conferencing in today's business environment, and how organizations are using visual collaboration to find...
- Gartner Magic Quadrant for Client Management Tools The client management tool market is maturing and evolving to adapt to consumerization, desktop virtualization, and an ongoing need to improve efficiency.
- Audit Ready and Asset Optimized: The Solid Promise of an Intelligent Software Asset Management Solution In this paper Frost & Sullivan examines the benefits of enterprise-grade Software Asset Management solutions, and how these solutions serve as the convergence...
- LIVE EVENT: 5/7, The End of Data Protection As We Know It. Introducing a Next Generation Data Protection Architecture. Traditional backup is going away, but where does this leave end-users?
- On-demand webinar: "Mobility Mayhem: Balancing BYOD with Enterprise Security" Check out this on-demand webinar to hear Sophos senior security expert John Shier deep dive into how BYOD impacts your enterprise security strategy... All IT Outsourcing White Papers | Webcasts