Thursday, March 9, 2017

H1B: the real cost-benefit - Why the H1B visa program should be shut down without delay

Why the H1B visa program should be shut down without delay:
A close look at’s data shows that, as you move past the Googles and Microsofts of the IT world, H-1B salaries tend to cluster around the $65,000 to $75,000 level.  There is a reason for this.  If outsourcing companies pay their H-1B workers at least $60,000, the company is exempted from a number of regulations designed to prevent visa abuse.

But $60,000 is far below 2016 market rates for most tech jobs.

In 2014 (the last year we have good data), Infosys, Cognizant, Wipro, and Tata Consultancy used 21,695 visas, or more than 25 percent of all private-sector H-1B visas used that year. Microsoft, Google, Facebook, and Uber, for comparison, used only 1,763 visas, or 2 percent.

What’s the difference? Infosys, Cognizant, Wipro, and Tata are all outsourcing companies. Their business model involves using H-1B visas to bring low-cost workers into the United States and then renting those workers to other companies. Their competitive advantage is price. That is, they make their money by renting their workers for less than companies would have to pay American workers.

 This is the real story of the H-1B visa. It is a tool used by companies to avoid hiring American workers, and avoid paying American wages. For every visa used by Google to hire a talented non-American for $126,000, ten Americans are replaced by outsourcing companies paying their H-1B workers $65,000.
That's how you kill high tech in America. It's time for the God-Emperor to shut the program down entirely. There is ABSOLUTELY zero need for it. Let Microsoft and Google move to India if they think they can get better coders there.