The document discusses concerns about the trend of outsourcing IT jobs from the US to other countries. It notes that outsourcing companies aim to maximize profits by sending foreign workers to the US on visas and replacing American IT workers. This practice, combined with H1-B visas, is eliminating many US IT jobs and lowering IT salaries. Suggested changes include restricting certain visa types and requiring outsourced companies to pay US taxes.

1. Author is a Reformist based in Philadelphia and
observing the trend over the past several years
IT Outsourcing Companies
–who next to axe
Anticipated SocioEconomic Impact
in USA

2. • Maximize Profit thru OUTSOURCING
and sending mediocre workers for the
esteemed VISA program
Vision Statement

3. • Maximize Profit
• Outsource maximum amount of IT work to India
or Other bases
• Make close relation at the C-Level of Companies –
CEO, CFO, CIO, VPs and Executives - who can
help outsourcing
• Replace American IT worker with the VISA
holders
Goal and Objective

4. • Business under intense competition to follow
outsourcing because profitable business are
leveraging on the OUTSOURCING Model.
• Almost 100% IT work can be outsourced , at current
level (2015) outsourcing companies have attained
enough maturity to drain USA from the IT jobs to
the lower cost base.
Today’s Situation..

5. • Outsourcing in addition with H1-B visa will kill nearly all IT
jobs or significantly lower the cost of IT salaries in USA,
could be paramount to Retail Jobs.
• USA worker will exiting out of IT leaving the space available
only to the Outsourcing companies
• Prime target for Outsourcing companies will remain
Asian/Indian-American citizen in USA, its inevitable that
this will start affecting American too.
Today’s Situation

6. • Pressure to reduce cost and enhance share values
• Leveraged model adopted from the companies who drastically
reduced IT cost in USA
• Regulation like MLR etc putting pressure to reduce admin cost
is putting pressure on companies to outsource
• H1-B/L1 (except who done masters in usa) visa folks offer no
job competition to the employees here, so they become eye
candy for hiring, at such expense most of these workers are
involved in basic work which can be done by high-school grads
in USA.
How Did We Get Here?..

7. • Most of such worker involve in adulation and don’t
offer real worth- who doesn’t like adulation ? But
this puts the pressure on citizens to get into the
same fold or exit out.
• USA collects huge fees from such visa, so they don’t
care from the socio-economic perspective.
How Did We Get Here?

8. • Companies can choose to outsource or bring a person on H1-b
but cant do both.
• L1 visa should be restricted to 6 months max
• B1 visa , must not conduct any activity other than pre-defined
business activity
• Outsourced jobs must pay USA Taxes
• H1/L1 visa worker must be full time employees of the
company requesting work and not the outsourcing company
like Cognizant, TCS, Infosys, IBM…
Suggested Changes in Regulation

9. • http://useconomy.about.com/od/tradepolicy/tp/How-Jobs-Outsourcing-
Affects-US-Economy.htm
• http://timesofindia.indiatimes.com/tech/tech-news/US-companies-
continue-to-outsource-jobs-to-India/articleshow/21970009.cms
• http://wolfstreet.com/2015/02/05/the-search-for-cheap-labor-in-tech-
behind-the-h1-b-visa-scenes/
• http://www.theatlantic.com/business/archive/2015/06/disney-h1b-visas-
immigration-layoffs/396149/
References