Tuesday, May 15, 2007

Who is a "legal" H1B candidate?

Crackdown on Indian Outsourcing Firms

I guess it would be hard to prove that outsourcers broke the law. I don't know if they did but I am certain that they broke the spirit of the law. But, then who gives a damn about the spirit of the law? What about the American companies who hire foreign students on F1 and then H1B? They know that these folks are pretty much stuck with them for the next five years - until their permanent residency application is approved.

The whole H1B program is about augumenting the workforce when there is a shortage of skills. However, it never makes mention of economic concepts - money and time value of money. There may be a shortage of resources at USD X/annum but not at USD 2X/annum. The law does not make any difference but businesses do. And, they need to.

The people who complain about H1B abuse often refer to "prevailing wages". What are the prevailing wages? In retail, is the prevailing wage what Wal-mart pays its workers or what Costco pays its workers? "Prevailing wages" is a scale with a huge range.

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