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  1. #1
    JadedBaztard's Avatar
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    Jan 1970

    Senators Look at Outsourcing: Data Requested From 9 Companie

    Senators Look at Outsourcing: Data Requested From 9 Companies

    By Frank Norton, The News & Observer, Raleigh, N.C.

    Jun. 21--The outsourcing practices of nine foreign firms are being questioned by two U.S. senators who want to know whether foreign workers are being hired for jobs that could be filled by Americans.

    Sens. Charles Grassley, R-Iowa, and Richard Durbin, D-Ill., last month requested employment data and other information from nine of the largest foreign outsourcing firms that operate in this country.

    These companies hire workers on H1-B visas, which allow technology specialists and other professionals to work in the United States. At least seven of the nine companies queried name either IBM, Red Hat, SAS or some combination of the three among their "strategic partners" -- companies for which they provide outsourcing services.

    H1-B visas have long been a source of contention, particularly in the technology world.

    Technology companies want more such visas, saying they can't find enough skilled U.S. workers. Critics of the visas say they are used to hire foreign workers at lower wages than their American counterparts.

    The immigration bill now stuck in the Senate would nearly double the annual cap on H-1B visas to 115,000. Another provision of that bill would require all companies that employ H1-B visa workers to look for qualified American workers first instead of just companies labeled "H-1B dependent."

    A number of firms have allegedly laid off American workers while continuing to employ H-1B visa holders, the senators wrote in the letter sent to each company. The senators have asked each company whether visa holders displaced U.S. workers. The senators have sent their findings to the U.S. Citizen and Immigration Services.

    In the tech world, outsource consultants usually handle specific chunks of software development or engineering work. In other areas, they handle accounting, finance and human resources.

    Big corporations have long used them to access foreign talent, cut personnel costs, slash product development times and help focus in-house staff on core missions.

    But outsourcing work to lower-paid immigrants in the United States depresses salaries, critics argue. Immigrant engineers with H-1B visas make about 23 percent less than American engineers in similar jobs, according to filings with the U.S. Department of Labor.

    IBM, based in Armonk, N.Y., is itself the eighth biggest receiver of H-1B visas, which it uses to hire foreign workers. Company spokeswoman Gretchen McWhorter said IBM doesn't outsource work but said some of the nine companies "might work with us on developing new industry solutions."

    IBM employs about 11,000 people in the Triangle and has offices globally.

    Vivek Wadhwa, a globalization researcher at Duke University who has published extensively on outsourcing and offshoring, said IBM does extensive outsourcing business with most of the nine firms.

    Wadhwa said he met recently with senior executives for several of the firms in Bangalore, where many are based. The nine firms, all based in India, are Infosys Technologies, Wipro, Tata Consulting, Satyam Computer Services, Patni Computer Systems, Larsen & Toubro Infotech, I-Flex Solutions, Tech Mahindra Americas and Mphasis.

    Wadhwa said IBM steers clear of the word outsourcing since it rebranded itself as a global rather than an American company.

    "It's like saying 'I'm not vacationing in foreign country, I'm a citizen of the world.' They're playing with words," he said.

    In recent months, there were major layoffs among technology companies with IBM, Lenovo, Dell and Motorola announcing plans to cut more than 14,000 jobs. Experts say these multinational companies may continue to "re-balance" their work forces this year, trimming U.S. payrolls by either shifting jobs abroad or outsourcing noncore functions to other firms.

    Several of the outsourcing companies, meanwhile, post U.S. jobs online. Tech Mahindr Americas has several job postings that say "willing to accept foreign educational degree."

    Spokespeople with Red Hat, a Raleigh developer of Linux-based software that has offices in Europe, Asia and Latin America, declined to comment on outsourcing. An official at Cary-based SAS, a private software developer, said the company does not outsource any "core business functions." SAS does business worldwide through offices in more than 100 countries.

    "We don't even outsource housekeeping; why would we outsource core technology development," asked Jeff Chambers, head of HR for SAS.

    Among the nine outsourcing companies being queried, both Wipro and Satyam Computer Services list SAS among its strategic partners. Satyam and another company, Patni, list Red Hat's JBoss division among its partners. Officials at Wipro, Satyam and Patni could not be reached for comment.

    Wadhwa, a native of India who once led the local technology company Relativity, said outsourcing work is central to globalization. While H-1B visas probably do lower U.S. engineering salaries, blocking them from the U.S. economy would more probably send jobs offshore, Wadhwa said.

    "It's one thing to lose dress making," he said. "It's really damaging when R&D goes out the door."

    (News researcher Susan Ebbs contributed to this report.)

    Staff writer Frank Norton can be reached at (919) 829-8926 or

    News researcher Susan Ebbs contributed to this report.


    To see more of The News & Observer, or to subscribe to the newspaper, go to

    Copyright (c) 2007, The News & Observer, Raleigh, N.C.

    Distributed by McClatchy-Tribune Information Services.

  2. #2
    Senior Member BetsyRoss's Avatar
    Join Date
    Aug 2006
    Here's a related story: after the H1-Bs have been on the job, and if the company decides they want to keep him by getting him a Green Card, they have to briefly advertise his position. This explains all the fake job ads we've been seeing in recent years. What if a qualified American candidate wants the job? Watch this:
    Join our efforts to Secure America's Borders and End Illegal Immigration by Joining ALIPAC's E-Mail Alerts network (CLICK HERE)

  3. #3

    Join Date
    Jan 1970

    root of every problem

    the best solution is the one which addresses the root cause. foreign workers are attractive for companies because

    b.they are dependant on the employer and can be exploited.

    if foreign workers can come in here on a company's invitation, but once they are here they are free to work for who they want to like americans, wihtout being dependent on their employers,

    then you take away the reason for a company to look specifically for a foreign worker. they will do it only if they cant find that skill. Simply take away the attraction.

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