Thursday, April 19, 2007

Parsing the Truths About Visas for Tech Workers

THE United States has benefited immensely from its role as a magnet for the best and brightest workers from around the world, especially in innovative fields like high technology. Bill Gates, the chairman of Microsoft, sounded precisely that theme in Senate testimony last month when asked about the visa program for skilled workers, the H-1B. Mr. Gates said that these workers are “uniquely talented” and highly paid — “taking jobs that pay over $100,000 a year” — and that America should “welcome as many of those people as we can get.”

But that is not how the H-1B visa program as a whole is working these days, according to an analysis by Ronil Hira, an assistant professor of public policy at the Rochester Institute of Technology. The median salary for new H-1B holders in the information technology industry is actually about $50,000, based on the most recent data filed by companies with the United States Citizenship and Immigration Services agency. That wage level, Mr. Hira says, is the same as starting salaries for graduating computer science majors with bachelor’s degrees.

Yet salaries, according to Mr. Hira, are only part of the story. He says that while Microsoft may be paying its H-1B visa holders well and recruiting people with hard-to-find talents, other companies have a different agenda. The H-1B visa program, Mr. Hira asserts, has become a vehicle for accelerating the pace of offshore outsourcing of computing work, sending more jobs abroad. Holders of H-1B visas, he says, do the on-site work of understanding a client’s needs and specifications — and then most of the software coding is done back in India.

“Information technology offshore outsourcing has just swamped the H-1B program in recent years,” he said. The list of the top 10 companies requesting H-1B visas in fiscal 2006, the most recent government data available, was dominated by Indian-based technology outsourcing companies like Infosys Technologies, Wipro Technologies and Tata Consultancy Services, and a few other companies that offer outsourced services and have sizable operations in India like Cognizant Technology Solutions, Accenture and Deloitte & Touche, according to a paper last month by Mr. Hira, which was published by the Economic Policy Institute, a liberal research group....

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