A new bill in Washington aimed at tightening the rules for companies in the US that hire skilled workers from abroad could threaten the business model for outsourcing firms such as Wipro Technologies, Infosys Technologies, and Tata Consultancy Services. Top executives at those firms say the legislation could also escalate into a trade dispute between India and the US.
The bill, introduced by Senators Dick Durbin and Charles Grassley, would change many of the rules companies must follow to obtain temporary work visas, known as H-1Bs and L-1s. The most controversial new rule would bar companies with more than 50 U.S. employees from getting any additional work visas if more than 50% of their US workforce is made up of H-1B or L-1 visa holders.
The 50/50 Rule
Grassley says the "50/50" provision would help protect American jobs at a time of rising unemployment. "The original rationale [for the visa program] was that we needed to allow importation of managers and technical people when there weren't enough Americans available," he said in an interview. "It seems to me ridiculous that companies now have more than half of their workers on [these visas] when there are certainly a lot of workers in the US who can fill in some of those positions."
Som Mittal, president of the NASSCOM trade group that represents India's software and services companies, says the Durbin-Grassley bill has some valuable elements, including tougher oversight to prevent visa fraud. But he says the 50/50 provision is misguided and dangerous. If enacted, the legislation would stop virtually all of the major Indian outsourcing firms from bringing new employees into the US, jeopardizing their work for American clients. "Both US and Indian industry would suffer," says Mittal. "A lot of disruption would happen."
The bill, introduced by Senators Dick Durbin and Charles Grassley, would change many of the rules companies must follow to obtain temporary work visas, known as H-1Bs and L-1s. The most controversial new rule would bar companies with more than 50 U.S. employees from getting any additional work visas if more than 50% of their US workforce is made up of H-1B or L-1 visa holders.
The 50/50 Rule
Grassley says the "50/50" provision would help protect American jobs at a time of rising unemployment. "The original rationale [for the visa program] was that we needed to allow importation of managers and technical people when there weren't enough Americans available," he said in an interview. "It seems to me ridiculous that companies now have more than half of their workers on [these visas] when there are certainly a lot of workers in the US who can fill in some of those positions."
Som Mittal, president of the NASSCOM trade group that represents India's software and services companies, says the Durbin-Grassley bill has some valuable elements, including tougher oversight to prevent visa fraud. But he says the 50/50 provision is misguided and dangerous. If enacted, the legislation would stop virtually all of the major Indian outsourcing firms from bringing new employees into the US, jeopardizing their work for American clients. "Both US and Indian industry would suffer," says Mittal. "A lot of disruption would happen."
0 comments :
Post a Comment