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Are H-1B Visas a Cog in the Offshoring Machine?

Are H-1B Visas a Cog in the Offshoring Machine?

H-1B visas are touted as a way to fill empty IT seats in the U.S., but a new report suggests that the visa program is merely a salary bonanza for U.S. companies — and an important bonus for offshoring companies.

The technology industry has been pushing for an increase in the maximum number of H-1B visas allowed, saying the visa workers are the best way to fill empty seats in the IT sector and that these workers will create more U.S. jobs by creating new technologies. But that reasoning is a scam, according to a new report done for the Center for Immigration Studies. The report found that the H-1B visa program is merely a salary bonanza for companies as they pay, on average, $13,000 less to H-1B visa workers than comparable U.S. workers. Not only does the H-1B program undercut U.S. workers? salaries, it also acts as part of the offshoring effort; nine out of the 10 top companies requesting H-1B visas are offshoring. Congress is currently weighing whether to support a bill that would increase the H-1B visa cap from 65,000 to 115,000, with the option of adding 20 percent more down the road.

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More reading on this subject:

Abolish the H-1B; Green Cards for U.S. Graduates Instead

The H-1B Visa Program Counteracts Offshoring, Helps U.S. Keep Its Competitive Edge

U.S. Needs More H-1B Workers or More Offshore Outsourcing: Take Your Pick

posted by Victor Lloyd Smith @ 2:22 PM