Saturday, May 19, 2007

H1B - The US Dilemma

H1B - is still, the greatest source of inspiration for the Indian Engineering graduates. The inspiration comes from two sources. First, it is from their parents and families. In India, specially in the states like Andhra - an Engineer is considered lost his / her career, if they do not get the H1B stamp on their passports. There are many movies, jokes, stories about the H1B and the mental and physical struggle those budding Engineers undergo in their life. Second source of inspiration comes from the success stories and wealth the previous H1B Engineers created and benchmarked. "Dollar Dreams" as it is called, is one of the greatest journeys in any ambitious Engineers life.

H1B category when it was initiated by US government, the numbers fighting a slice were relatively small. First there were few Engineering Colleges in the state. The IT industry was nascent. The so called Body Shopping companies that sponsored Engineers are located in US and the process was painful due to slow communications.

H1B suited every one's interest. Initially, it was win win situation. The best of those H1B Engineers naturally were fit in the American dream and they got their Green Cards and settled for good. Those who could not fit in the structure or lacked intention to settle in US, returned at the end of the H1B term. The important aspect of the H1B processing was body shopping - that is a, third party company sponsors the Engineers and places them in the big American MNC's. Most of the 1980's and and until mid-1990's the pattern was on the similar lines.

By mid-1990's, major changes were happening. Engineering graduates from India were multiplied by many fold. The IT industry became THE big industry. Slowly Indian Companies started working in US and as a result, the Body Shoppers were driven out from the lucrative broker business.

Today, India is seen as net gainer and US looks like loosing in H1B and other related visa like L categories. Since it is Indian IT majors corner major chunk (may be in excess of 95%) of visas - they have become very influential. This is because - how they use the visa's matters to everyone concerned. Since these visas are limited, both US and Indian companies started Outsourcing the jobs to India. US companies cunning plan is to kill the Indian companies in their own back yard. For Indian Companies the hassle and pain of US visas process will be alleviated to a great extend and also makes business sense, since the profit margins are lot better.

US senators are worried that Indian companies are misusing the visa and the Engineers are not paid on the same terms as their US counterparts. This may not be a fact in most of the cases - but there could be isolated cases. No Indian company can take risk with US Government where the evidence can be gathered very easily. If the evidence was present, US Government would have acted long back. The other allegation that Qualified US born Engineers are displaced by Indians might be true. But, US must remember that they built their empire on fair and open competition!

The main dilemma for US today is - what to do with these visa categories. US is steadily loosing Technical superiority to both India and China. In fact, the US Technical supremacy has been build by the immigrants - from Europe and Asia. They need the Technically qualified people. At the same time, they cannot risk loosing the jobs to India or China. From the India Engineers point of view - two diverse scenarios are seen. India is shining and opportunities are lot better. From personal opportunities, quality of life point still US better. Next couple of years would decisive. If things gravitate further in India's favor, then US may struggle to find that there are no takers for their immigrant visa. The demand may be there still from Indian Companies - but, that is not going to add anything to the net inward immigration.

To get back to the the win win proposition, time has come for US law makers to comprehensively amend the laws so that the immigration and Visa would benefit their country. The intelligent people have the better opportunities and their dependence on their Indian sponsers is very much limited or taken off from the loop.

Otherwise, the situation may come that India and China can live without US, but US cannot live without them.

Time has come for a change

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