In Depth: Why We Need The H-1B
The U.S. IT industry needs a free flow of talent–probably more free than we have. That’ll take addressing the abuse, fear, and retraining problems that stand in the way.
By
Marianne
Kolbasuk McGee
Via
InformationWeek
Jun 12, 2006 12:05 AM
Many American IT pros won’t want to hear this, but importing tech
workers into the United States isn’t just an economic necessity; it
might be critical to saving their jobs.
Congress is giving its most serious consideration in years to
increasing the number of people who can work in the United States each
year under H-1B visas. Two main proposals remain on the table: Leave
the cap at 65,000, or raise it to 115,000. That’s a difference of only
50,000 jobs in an economy that employs about 144 million people, yet
advocates maintain that the country’s technological leadership hangs in
the balance.
 |
|
|
Think the United States is the only place to work? Think again, Huang says. Photo by Eric Millette |
|
|
|
Set the visa number too low, and tech-driven
U.S. companies won’t get the people they need (at least not at the
salaries they and their shareholders increasingly demand), so they’ll
be more likely to relocate those positions abroad. Set the number too
high, critics maintain, and U.S. IT organizations will become glorified
sweat shops, driving down salaries for all tech pros and discouraging
young Americans from entering the field.
The U.S. Citizenship and Immigration Services already has enough
applications for the 65,000 H-1B visas it will issue for the fiscal
year that starts Oct. 1–the fourth straight fiscal year the cap will
be reached. And with the U.S. tech unemployment rate hovering around
3%, near its record low, and tech employment above 3.4 million, near
its all-time high, expect H-1B visa demand to far exceed supply unless
the cap is raised. For those U.S. employers turned away, offshoring the
work to India, China, and other counties remains an attractive option,
despite recent salary inflation in those countries. There’s no arguing
with the economics.
The H-1B cap has been moved three times since it was first set at
65,000 in 1992: up to 115,000 in 1999, up to 195,000 in 2001, and down
to 65,000 in 2004. History suggests the demand for such visas isn’t
insatiable–the 195,000 cap was never hit, even in the boom of 2001,
when companies snatched 163,600. In 2003, when U.S. IT employment
bottomed out amid widespread cost-cutting, companies grabbed 78,000
H-1B visas, leaving 117,000 on the table.
There isn’t an exact count of how many of the country’s 3.6 million
available tech workers are on H-1Bs. The visas can go to any industry,
but IT companies are by far the biggest users. According to the
National Foundation for American Policy, a nonprofit that advocates
raising the cap, as many as 450,000 H-1B visa holders across industries
may be in the United States waiting for green cards.
While the immediate point of debate is 65,000 versus 115,000, some
proposals go further. One would raise the cap annually by 20% if the
previous year’s quota is met, and another would simplify the green-card
process, making it easier for temporary foreign workers to work
permanently in the United States.
While some argue passionately that these additional H-1B workers will
only take jobs away from American tech workers, the opposing view is
that the increase will actually create jobs. Smart foreign-born
overachievers allowed to work–and perhaps stay–in the United States
could help provide new ideas and expertise to drive technology
innovation in this country, creating more jobs for the future. Those
new jobs might require different skills than are needed today, but
that’s just the point: Technology is evolving, and the U.S. workforce
needs to make sure it can keep up with changing demands.
USCIS Issues Memorandum on Eligibility for H-1B Cap Exemption Under American Competitiveness in the Twenty-First Century Act (AC21)
Via AILA.org
June 8, 2006
USCIS Associate Director for Domestic Operations, Mike Aytes, issued a memorandum, dated June 6, 2006, providing guidance on eligibility for exemptions to the H-1B cap based on employment or an offer of employment at an institution of higher education, a related or affiliated nonprofit entity, a nonprofit research organization or a governmental research organization as provided by Section 103 of AC21.
With respect to the interpretation of the statutory language “employed (or
has received an offer of employment) at,” the memorandum clarifies that USCIS
will allow third-party petitioners — petitioners on behalf of an H-1B worker
who will work at a qualifying institution but is or will be employed by the
third-party petitioner — to claim exemption on behalf of a beneficiary,
provided the petitioner establishes a logical nexus between the work performed
predominantly by the beneficiary and the normal, primary or essential work
performed by the qualifying institution (higher education or nonprofit or
governmental research). The memorandum also provides guidance on the meaning of
the statutory phrases “institution of higher education or related or affiliated
nonprofit entity” and “nonprofit research organization or a governmental
research organization.”
A Post-Mortem On Fiscal 2007 H-1B Count
Via AILA.org
Questions are pouring in asking how it could be
that on May 25th USCIS indicated that there were as many as 12,000 H-1B
quota numbers available, and on May 26th, there were none. As of
Wednesday morning, June 1st, USCIS had just finished data-entering
cases that were received on May 25th, and began data-entering cases
received on May 26th. During the entry of May 26th cases, the cap was
reached, making it appear that 12,000 cases arrived overnight.
AILA has inquired into this oddity, and it appears that the problem
lies in the processing of filings by the USCIS at the VSC. When the
USCIS went to Bi-Specialization filing effective April 1, 2006, VSC was
unable to handle the volume of cases it was receiving, because all
I-129 case types were to be sent to the VSC, leading to data-entry and
receipting backlogs from early on. VSC data-entry and receipting
remained backlogged, leading to the lag between delivery of a petition
to VSC and its entry into the system. As USCIS updated its cap-count
reports, the volume of cases sent to VSC increased, further
contributing to the backlog in data-entry and receipting. The cap count
reports posted by USCIS failed to mention that not all cases received
had been input into the system, and that thus the counts did not
include all cases received as of the report dates. Ultimately, the
combination of the existing backlog in data entry and the volume of new
cases delivered last week made it appear that 12,000 cases arrived
overnight.
Cap Treatment of H-1B Petitions Delivered to VSC Prior to Cap Cut-Off But Not Yet Receipted
06/01/2006
USCIS has confirmed to AILA that any cap-subject H-1B received at the
VSC mailroom prior to the cut-off day will be considered under the cap
regardless of whether it was data entered. Any cap-subject H1-B
petition received on the cut-off day will be eligible for random
selection. USCIS also advised that as of close-of-business yesterday
VSC had data entered through 5/25.
Article: AILA on Reaching of H-1B Cap
FOR IMMEDIATE RELEASE:
Thursday, June 1, 2006
CONTACT:
George Tzamaras
202-216-2410
gtzamaras@aila.org
H-1B VISAS CAP REACHED
Once Again Arbitrary Cap is Damaging US Businesses Ability to Hire Global Talent
WASHINGTON DC, JUNE 1 – The U.S. Citizenship and Immigration Service
(USCIS) announced today that it has met the 65,000 H-1B congressionally
mandated cap for the 2007 fiscal year, which means that companies that
need workers with critical skills will have to wait more than a year
before they can obtain this needed expertise. “This is unprecedented.
It marks the second year in a row that the H-1B cap has been
prematurely reached said Deborah J. Notkin, president of the American
Immigration Lawyers Association (AILA). “It is another example of the
country’s broken immigration system and why we need Congress to pass
the Senate’s comprehensive immigration bill which solves this annual
dilemma.”
“It’s just more bad news for American employers,” continued Notkin.
“The exhaustion of this fiscal year’s H-1B visas impedes growth and
innovation, and makes it more difficult for U.S. businesses to stay
competitive. Some employers are sending work overseas, because there
are not enough qualified Americans. A workable H-1B program with an
increased initial limit and flexibility to adjust the limit based on
economic conditions would give U.S. employers access to the talent they
need and help retain jobs in America diminishing the need for
off-shoring.”
The H-1B nonimmigrant visa category allows U.S. employers to augment
the existing labor force with highly skilled international workers,
such as research scientists, to provide expertise to American companies
for temporary periods. H-1B workers are admitted to the United States
for an initial period of three years, which may be extended for an
additional three years.
The H-1B visa is utilized by U.S. businesses and other organizations
to employ international workers in specialty occupations that require
specialized expertise. Typical H-1B occupations include scientists,
architects, engineers, systems analysts, accountants, doctors, and
college professors.
###AILA###
Founded in 1946, AILA is a nonpartisan, nonprofit organization that
provides its Members with continuing legal education, information,
professional services and expertise. AILA advocates before Congress and
the Administration, as well as providing liaison with other government
agencies in support of pro-immigration initiatives. AILA is an
Affiliated Organization of the American Bar Association and is
represented in the ABA House of Delegates.
FY2007 REGULAR H-1B CAP FILLED
06/01/2006
FY2007 REGULAR H-1B CAP FILLED
All regular H-1B applications received after May 26, 2006 will be rejected.
US Senate approves doubling H-1B visas
Via Newindpress.com
WASHINGTON: The US Senate has approved a landmark immigration reform Bill that would give citizenship to millions of illegal persons and double the number of H1B visas from the present 65,000, a move that would greatly benefit thousands of Indian software professionals.
The Bill passed on Thursday provides for doubling the H-1B visas from the present 65,000 annually to about 115,000 and with a 20 per cent increase on an annual basis.
Various software and technology companies like Microsoft and Intel have been pressuring the US Government by threatening to move jobs abroad if it does not raise the cap on H-1B visas and allow more skilled workers into the country.
In the version that was cleared by the senate judiciary committee was also a new student visa classification for high tech studies.
However, the House version of the Bill has nothing on the H-1B visa and according to analysts it is most likely to be neglected when legislators get down to the negotiations at the conference committee stage.
The main provision of the bill is however to provide nearly 10 million to 12 million illegals living in the US citizenship rights that was denounced in many quarters as downright amnesty and something that House of Representatives has nothing to say when it passed the immigration legislation late last year.
Current Cap Count for H-1B’s FY 2007 as of 05/25/2006
Cap | Beneficiaries Approved | Beneficiaries Pending | Beneficiary Target 1 | Total | Date of Last Count | |
H-1B | 58,200 2 | 7,718 | 41,316 | 61,000 | 49,034 | 5/25/2006 |
H-1B Advance Degree Exemption | 20,000 | 1,672 | 4,158 | 21,000 | 5,830 | 5/25/2006 |
H-1B (FY 06) | 58,200 | —— | —— | —— | Cap Reached | 8/10/2005 |
H-1B Advance Degree Exemption (FY 06) | 20,000 | —— | —— | —— | Cap Reached | 1/17/2006 |
Current H-1B Cap Count for Fiscal Year 2007 as of 05/23/2006
|
Cap |
Beneficiaries Approved |
Beneficiaries |
Beneficiary Target 1 |
Total |
Date of Last Count |
|
|
H-1B |
58,200 2 |
7,396 |
37,754 |
61,000 |
45,150 |
5/23/2006 |
|
H-1B Advance Degree |
20,000 |
1,611 |
3,944 |
21,000 |
5,555 |
5/23/2006 |
|
H-1B (FY 06) |
58,200 |
—— |
—— |
—— |
Cap Reached |
8/10/2005 |
|
H-1B Advance Degree Exemption (FY |
20,000 |
—— |
—— |
—— |
Cap Reached |
1/17/2006 |
Infosys to Hire 300 US Grads
As part of its globalization plan, the Indian software giant will hire graduates fresh out of college in the U.S. and the U.K.
Infosys Technologies, a major Indian technology consultant, announced Monday it would recruit 300 college graduates from universities across the United States this year.
The first batch of 100 recruits will be brought to India, undergo training at the company’s development centers across India for six months before returning to work for Infosys in the U.S.
No Indian company has hired foreigners in such large numbers at one time. TCS, Wipro and Satyam, all rivals to Infosys, hire locally in the countries they operate in, such as China, Malaysia, and of course in the U.S., but their numbers pale in comparison with what Infosys is planning to do.
“We firmly believe that the future success of Infosys lies in its ability to create an environment that is open to people from different nationalities and ethnicities,” said Infosys Chairman Narayana Murthy, the company’s chief mentor.
With this move, Infosys will mirror what global rivals Accenture and IBM have always been doing. Both of those companies have huge numbers of Indians working for them in India.
“It’s a smart move,” said Partha Iyengar, vice president of research at Gartner in India. He has been following the software industry’s growth in India for over a decade and believes such an initiative is just the beginning.
As Indian software services companies innovate and move up the value chain in their offerings to customers, they need to have a deep understanding of the local markets.
Local Presence Needed
“No longer will it suffice to have H1B visa holders from India work onsite at client premises and then move the work to India. These companies will need a big local presence,” said Mr. Iyengar.
Infosys began recruiting for entry-level software engineer positions at top universities in the U.S. following a successful program that brought 10 young Americans to work in Bangalore last year. Applications were admitted from all majors, including liberal arts, for the software engineering position.
Along the same lines, a pilot program will take place to recruit students from universities in the United Kingdom. In 2007, about 25 students will be hired from the U.K.
TV Mohandas Pai, director of human resources and education and research, said: “We plan to run a pilot at top universities in the U.K. this year for 25 positions.”
While this is the first time Infosys will recruit fresh graduates for permanent positions, students from schools such as Stanford Graduate School of Business, MIT Sloan School of Management, Harvard Business School, and the Said Business School of Oxford have been competing to visit Infosys’ Bangalore campus for InStep, the Infosys internship program.
Last year InStep received over 11,000 applications for 100 positions. InStep recruits students from 82 universities in 18 countries to come to India for eight to 24 weeks to learn as an intern at Infosys.
Current H-1B Cap Count for Fiscal Year 2007 as of 05/19/2006
As of 05/19/2006
Cap | Beneficiaries Approved | Beneficiaries Pending | Beneficiary Target 1 | Total | Date of Last Count | |
H-1B | 58,200 2 | 6,934 | 35,942 | 61,000 | 42,876 | 5/19/2006 |
H-1B Advance Degree Exemption | 20,000 | 1,537 | 3,821 | 21,000 | 5,358 | 5/19/2006 |
H-1B (FY 06) | 58,200 | —— | —— | —— | Cap Reached | 8/10/2005 |
H-1B Advance Degree Exemption (FY 06) | 20,000 | —— | —— | —— | Cap Reached | 1/17/2006 |
1 Refers to the estimated numbers of beneficiary applications needed to reach the cap
US sets ball rolling on H-1B visa cap
Via The Economic Times of India
NEW DELHI: The move to increase the
number of visas for temporary highly skilled (H-1B) workers has gathered
momentum in the US Senate, with the introduction of yet another bill, S 2611 or
‘a bill to provide for comprehensive immigration reform and for other
purposes’.
The bill proposes to increase the annual cap from
65,000 to 115,000 and automatically increase the new cap by 20% each year. The
bill also proposes to create a new exemption to the proposed cap for anyone who
has an “advanced degree in science, technology, engineering, or
math” from any foreign university.
As per the proposals in
this bill, H-1B workers are eligible for green cards and will be allowed to stay
and work in the US for as long as it takes to process the green card
application.
The U.S. Immigration Law Blog by Ashwin Sharma 
Left Out by the Legal Route In
An interesting article by Susan Laurel Hodges in the Monday, June 12, 2006 Edition of the Washington Post in which she describes the incredible difficulties faced by well qualified applicants (a physician in this case) and their sponsors in obtaining an H-1B during the current quota blackout.