Recession unlikely to curb H-1B demand

[OhioChick]

Source: Computer World

The U.S. economy may be tanking. But a record number of applications for H-1B visas are expected to be filed this week. Here's why.
March 31, 2008 (Computerworld) Consumer confidence is down, unemployment claims are up, and the U.S. economy may already have slipped into recession. But starting tomorrow, the federal government will likely receive a record number of applications from employers seeking H-1B visas for workers from overseas.

So why is the demand for foreign workers, including skilled software developers and other IT professionals, still rising as economic conditions grow steadily worse?

First, there's pent-up demand for H-1B visas. Last year, the U.S. Citizenship and Immigration Services received more than 143,000 petitions for the 85,000 visas available for the government's 2008 fiscal year. That forced the USCIS to choose recipients via a lottery process, and many of the people who didn't get visas are expected to try again this year.

Second, even if the overall job market is declining, the shift of technology jobs to outsourcing vendors isn't likely to abate. And many of the largest H-1B users are offshore outsourcing firms. For instance, eight of the top 10 recipients of new H-1B visas in fiscal 2007 were outsourcers that are based in India or have substantial offshore operations.



Read more: http://www.computerworld.com/action/article.do?command=viewArticleBasic&articleId=315740&intsrc=news_ts_head

[Lasher]

1. Those who don't get H-1B visas will try for L-1s.

And there's no quota on L-1 visas.

[WilmywoodNCparalegal]

3. But L-1 visas require an intracompany relationship

In other words, the workers must be employees of a foreign branch, affiliate, parent etc. It's not like anyone who doesn't make the H-1B can apply for an L. For a variety of reasons, it's best to apply for an L if the worker meets the requirements: it's cheaper, it's not capped, it doesn't require a prevailing wage/benefits test, etc.

[NJmaverick]

2. The real answer is companies want to keep pay

artificially low

[pattmarty]

4. That AND they don't want to pay the increased taxes to ...........

........bring our education system up to at least the 1950's standards of the other industrialized countries.

[EnviroBat]

7. and skill sets even lower...

There's the answer, lets bring in more resume padders!

[OhioChick]

11. Bingo! n/t

[happygoluckytoyou]

5. GOP = CHEAP LABOR.....

IF YOU WANT IT TO END... YOU GOTTA QUIT SHOPPING WALMART AND CIRCUIT CITY...

YOU HAVE TO BUY FAIR MARKET

YOU HAVE TO PASS LAWS

....

[Phred42]

6. Treason - nothing Personal, It's just Business

[redqueen]

8. "...even if the overall job market is declining,

the shift of technology jobs to outsourcing vendors isn't likely to abate."

Well isn't that lovely.

[SquireJons]

9. I still don't understand why...

Why are technology jobs being targeted for outsourcing so much? IMO, the H-1B and L-1 visas are just another way to shift high tech jobs to foreign nationals. I do understand that companies want to hire recent PhD graduates from elite colleges, and many of these individuals are foreign students. That's an issue for colleges to grapple with. But I don't buy it when they say that there aren't enough qualified Americans to fill these jobs. Either that's a terrible indictment of the U.S. educational system or just a load of BS.

Seems to me that many other professions lend themselves at least as well as IT to outsourcing. Why, for instance, does an accountant need to be here? They can crunch numbers just as well in the Philippines as here, and they can do it for a fraction of the cost. How about journalists? People can write just as well in other countries, perhaps even better. And Pilots! OMG, they make a boat load of money. Apparently, Saudi nationals who take a few weeks training at a small flight school can fly those big jets really well. These are just a few examples.

So why the emphasis on IT jobs? I think we are being punished for something. Not sure what, but I have a couple of theories. One is the enormous amounts of money that companies spent on Y2k, but that seems beyond petty. I guess it's not so much a question of why companies are willing to sacrifice American jobs for profit. Just look at the steel industry, or textiles or merchant marines... all of those industries have been gutted in the US. I guess the question is, why are some jobs being protected, and others are not? Can we start over with the CEO's? I'm petty certain that a foreigner can handle these jobs at something less than tens or hundreds of millions of dollars a year in compensation.

[IronLionZion]

12. They do outsource accounting jobs and financial analysis

as well as ghostwriting, market research, etc. Best Buy outsourced 100% of their Human Resources a few years ago.


http://en.wikipedia.org/wiki/Outsourcing#Overview

Full Disclosure: I work in the profession but I will resign next month to continue my education.

[HughBeaumont]

10. Blame Dealer: Not all Ohioans Condemn NAFTA.

http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=389&topic_id=3084419&mesg_id=3084419

Leave it up to the free-trade championing PD to gussy up this odious practice with testimonials from people who benefit the most! How can you go wrong?