DNA - World - Indian firms under H1-B abuse glare - Daily News & Analysis

DNA - World - Indian firms under H1-B abuse glare - Daily News & Analysis

Indian firms under H1-B abuse glare
Uttara Choudhury Tuesday, May 15, 2007 23:47 IST

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NEW YORK: Five India-based firms which are heavy users of the H1-B visa, have been sent strongly worded letters by two US senators scrutinising potential misuse of the programme.
Republican Senator Chuck Grassley and Dick Durbin, a Democrat, who are on the Senate Judiciary Committee’s subcommittee on immigration, border security and refugees, are questioning nine companies, of which five are headquartered in India.
Infosys, Wipro, Tata Consultancy Services, Patni Computer Systems, I-Flex Solutions, Satyam Computer Services, Larsen & Toubro Infotech Ltd, Tech Mahindra Americas Inc, and Mphasis Corp, who together used up to 20,000 of the 75,000 H1-B visas issued in 2006, have been issued the letters.
“We have been concerned about reported fraud and abuse of the H1-B and L visa programmes, and their impact on American workers,” said a letter to Nandan Nilekani of Infosys. Similar letters were sent to the eight other firms, asking questions about their visa use, wages, and layoffs.
The senators stressed that “too many H1-B visas are being used to facilitate the outsourcing of American jobs to other countries”. The inquiry comes on the back of a heated congressional debate aimed at crafting a comprehensive immigration
Durbin said: "We have to look at the system that generates these visas and the way they are used. This legislation will help protect American workers first by stopping H1-Bs from being exploited and used as outsourcing visas."
The letter to Infosys said: "A number of consulting firms reportedly recruit foreign workers and then outsource the individuals to other job sites or companies. Many of the top 20 companies that used H1-B visas in 2006 are firms, such as yours, that specialise in offshore outsourcing."
The senators also raised concerns about US workers getting retrenched by firms that exploit loopholes. "A number of firms have allegedly laid off American workers while continuing to employ H1-B visa holders," the letter said. "The American people are concerned about such layoffs at a time when the demand for visa issuances and the recruitment of foreign workers appear to be increasing."
Under federal law, 65,000 H1-B visas are issued each year for hi-tech workers. Another 20,000 are given to foreigners with degrees from US colleges.