On 16 Apr 2014
Justice Department Hits IBM Over H-1B Hiring Practices,
Five Companies Responsible For A Third Of All H-1B Guest Worker Visa Approvals Last Year As Businesses Seek Cheaper Tech Work
Five labor outsourcing companies alone accounted for 37 percent of the 65,000 temporary work visas immigration authorities approved under the program last year, according to federal immigration data analyzed by International Business Times. That has left others dependent on the visa program -- tech companies as well as thousands of other small businesses and universities seeking professional foreign guest workers -- to compete for the remaining slots.
Lost on no one is the fact that foreign workers brought to the United States under the temporary visa scheme can legally be paid less than median wages, provoking charges that the temp agencies are exploiting the program as a means of undercutting American-born workers.
“The whole process is broken,” said Neeraj Gupta, CEO of Newark, Calif.-based Systems In Motion, a three-year-old IT services provider that trains and places American college graduates in tech-support jobs. “What the visa was intended to do was to allow us to get great engineers from India, the Philippines, the Ukraine, or wherever, for our innovation economy. Instead these large outsourcing firms are bringing in lower paid testers and programmers are taking up so many of the visas.”