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  #1  
Old August 10th, 2010, 05:41 PM
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Now Obama administration milking H1B visa fees

The Obama administration has not been able to jump start the economy despite the so called stimulus packages. Big government is still the mantra of the Democrats.

And so now, to find more avenues to get money, the US Congress has voted to hike H1B visa fees which are totally obscene.

Fees will go up from $320 to $2,320. Yes they go up by a full 2,000 dollars!!

Quote:
US House votes hike in visa fees amid concerns by India

The US House of Representatives today approved a key border security bill that would steeply hike H-1B and L-1 visa fees to fund new measures amid concerns by Indian companies, who are one of the main beneficiaries of the travel permit.

The House passed by voice vote the bill on border protection that would increase the H-1B and L-1 visa application fee by more than $2,000 in a bid to fund America's border protection measures with Mexico, which has been a source of a large number of illegal migrations.

The bill proposes to raise the fees on H-1B visas (for temporary skilled workers) for companies who have more than 50% of their employees on H-1B visas. Their fees will raise from $320 to $2,320.

It also raises fees on L visas (given to multi-national transferees) for foreign companies. Their fees will raise from $320 to $2,570.

A similar version of the bill was passed by the US Senate last week with unanimous consent.

Unveiled 90 days ahead of the key November mid-term elections, it seeks to add another 1,500 agents and put in place greater number of unmanned aerial vehicles that scan the frontier for undocumented immigrants or illegal drug runners.

The bill, first unveiled by Democratic senator Chuck Schumer and senator Claire McCaskill, would also pay for building forward operating bases along the border as well as unmanned aerial vehicles (UAVs) to patrol the border.

"I prefer our source, which is from these companies which are not, as I say — they are companies whose whole purpose is to bring people in on H-1B and the vast majority of them from other countries who go back to the other countries. That is a better funding source," said Senator Charles Schumer from New York, one of the co-author of the bill along with senator Claire McCaskill.

Schumer said he "liked the H-1B programme" as "it does a lot of good for a lot of American companies".

"In fact, in the immigration proposal I made, along with senator Reid and senator Menendez, as well as the outline with senator Graham, we expand H-1B in a variety of ways," Schumer argued.

A summary of a Senate version of the bill named Indian firms Wipro, Tata, Infosys and Satyam, which use hundreds of these visas for their employees coming to the United States to work at their clients' locations as technicians and engineers, a media report said.

India's National Association of Software and Services Companies (NASSCOM) has expressed concern over the bill, warning it would stteply hike annual US visa costs for India's outsourcing industry by $200-250 million annually, the report said. The House passed its own version of the bill that would fund US-Mexico border protection by raising the visa fee of H-1B and L1 applications.

The Indian companies, which would be majorly affected by the visa fee increase, have raised their voice against the bill, a version of which was passed by the Senate last week.

However, the political conflict between the House and Senate and also between the majority Democrats and minority Republicans has ensured that it will take some time before the bill passes through the Congress and reaches the White House for US president Barack Obama to pass it into law.

Soon after the bill (H R No 6080) was passed by the House, two top Republican senators, John McCain, and John Kyl (both from Arizona) in a statement called for an urgent session of the Senate, which is now in recess.

This is because, the measure, passed by voice vote, by the House of Representatives will have to wait for final action by the US Senate, which is unlikely to act until it returns from recess September 13.

The border protection bill would give the Obama administration the $600 million it requested June 22 to beef up security along the southwest border.

The bill would also give millions of dollars in communication equipment to the border with Mexico to combat the flow of illegal immigrants and drugs.

"The refusal of Speaker Nancy Pelosi to take up and pass the Senate's fully paid for $600 million border security bill is another example of politics trumping policy.

"Today, the Democrats have made it clear that once again they are more interested in scoring political points than actually taking steps to pass strong policy and secure the border," the two Republican Senators said in a statement.

"The only difference between the Senate-passed bill and what the House passed today was the substitution of the words 'House bill' for 'Senate bill'. It raises the question whether House Democrats want the result or the credit," said McCain and Kyl.

They called on senator majority leader Harry Reid to end what they called the game of "political ping pong" and immediately bring the Senate back into session to approve the legislation and send it to the president's desk.

They said there is no reason $600 million for border security should be sidelined through the month of August simply because of political games.

"Arizonans and others living on the border deserve better, for some it's a matter of life and death," the two senators said.

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  #2  
Old August 11th, 2010, 01:05 AM
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Re: Now Obama administration milking H1B visa fees

Quote:
Originally Posted by echarcha View Post
The Obama administration has not been able to jump start the economy despite the so called stimulus packages. Big government is still the mantra of the Democrats.

And so now, to find more avenues to get money, the US Congress has voted to hike H1B visa fees which are totally obscene.

Fees will go up from $320 to $2,320. Yes they go up by a full 2,000 dollars!!
No problem.. will pay $2500.. just give me H1B..
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  #3  
Old August 11th, 2010, 09:07 AM
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Re: Now Obama administration milking H1B visa fees

Demand And Supply...
The time tested economic model works are every level.

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Originally Posted by raniraja View Post
No problem.. will pay $2500.. just give me H1B..
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  #4  
Old August 11th, 2010, 09:36 AM
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Re: Now Obama administration milking H1B visa fees

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Originally Posted by Rana View Post
Demand And Supply...
The time tested economic model works are every level.
Right.. Swami is willing to pay $5000 !!!
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Old August 11th, 2010, 09:41 AM
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Re: Now Obama administration milking H1B visa fees

Quote:
Originally Posted by echarcha View Post
The Obama administration has not been able to jump start the economy despite the so called stimulus packages. Big government is still the mantra of the Democrats.

And so now, to find more avenues to get money, the US Congress has voted to hike H1B visa fees which are totally obscene.

Fees will go up from $320 to $2,320. Yes they go up by a full 2,000 dollars!!
This will help create jobs locally, i say it's a smart move.
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  #6  
Old August 11th, 2010, 12:09 PM
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Re: Now Obama administration milking H1B visa fees

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Originally Posted by Robert View Post
This will help create jobs locally, i say it's a smart move.
They have been saying this for a very long time. I have heard this for the last 10 years or so.

Yet the average American student does not get interested in learning to become a software professional. I am not saying that computer courses at universities are empty but most of the students are foreign students from India, China, Korea and rest of Asia mainly.

Ask any average college student and the most likely answer is that they want to pursue careers like business management, law, marketing, etc.

So I have been here long enough to realise that US tech industry will always require outside help. So that point is not even on the debate.

As for this extra dollar for a H1B visa, well the effect will be that companies who were earlier getting folks here from Indian companies to work onsite for a short duration will now send even that work to India. In my earlier job, we used to have consultants from India's top companies like Satyam, Wipro, HCL, TCS, Infosys on site to help with final integration, etc. Now even that will be done remotely.

So no Robert, this is not creating any new jobs but shifting more work back to India. And yes, its cheaper to get work done in India and no company here is going to spend more by hiring here when cheaper options are available.

All this money from increased fees is to stifle tech business and ensure more jobs stay outside of USA
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  #7  
Old August 11th, 2010, 12:22 PM
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Re: Now Obama administration milking H1B visa fees

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Originally Posted by raniraja View Post
Right.. Swami is willing to pay $5000 !!!

American nahi dunga lekin $.

5000Bangladeshi takka chalega
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  #8  
Old August 11th, 2010, 01:28 PM
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Re: Now Obama administration milking H1B visa fees

It will eventually shut down all the small gulti IT shpos run by Krishna V. and I will not get any calls from Mr. John " Yellow thish ish Jone . I hav a urjent rekuirement for pruject manajer. Can you work for forti dollars per our ?"
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Old August 11th, 2010, 04:53 PM
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Re: Now Obama administration milking H1B visa fees

Instead of $40, Americans will now pay $60 per hour.
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  #10  
Old August 11th, 2010, 04:57 PM
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Re: Now Obama administration milking H1B visa fees

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Originally Posted by raniraja View Post
Instead of $40, Americans will now pay $60 per hour.
Do you even know what you are talking about ? Dont talk shit everytime you open your mouth . Sometimes if you dont know then its better to keep quite instead of talking some crap and confirming your stupidity.

This is a very friendly message for you.
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Old August 11th, 2010, 04:59 PM
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Re: Now Obama administration milking H1B visa fees

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Originally Posted by dirty View Post
Do you even know what you are talking about ? Dont talk shit everytime you open your mouth . Sometimes if you dont know then its better to keep quite instead of talking some crap and confirming your stupidity.

This is a very friendly message for you.
Shouldn't this be in "khali dimag" thread?
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Old August 11th, 2010, 05:08 PM
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Re: Now Obama administration milking H1B visa fees

The body shoppers will pay $2500, then they will vasoolofy it double from their clients. Ultimately the American consumer will end up paying for more than the government milked the visa fees.

Makes sense?
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  #13  
Old August 11th, 2010, 05:25 PM
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Re: Now Obama administration milking H1B visa fees

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Originally Posted by raniraja View Post
The body shoppers will pay $2500, then they will vasoolofy it double from their clients. Ultimately the American consumer will end up paying for more than the government milked the visa fees.

Makes sense?
No, still does not make sense because you are not aware of the changed picture here vis-a-vis H1B visa. So unless you have updated yourself with what has happened, your statement and assumption is wrong.

In the early days, there were tons of small companies who would get people here from India on H1B visa. These H1B holders would then be placed with bigger clients like Cisco, IBM, HP, Yahoo, etc. by these smaller companies as 'consultants'. The big clients would then pay anywhere from $80 to $100 per hour for these services.

After the first dot com meltdown, H1B suddenly became a no no. Work started flowing back to India and companies like TCS, InfoSys, Satyam, Wipro and some second tier companies flourished because the American companies could not afford $60 plus rates. Indian companies offered the same services at a lower rate. So work flowed there. Plus the labour department made it almost impossible to get a labour certification (LCA) to process a H1B. Then there were calls by the local politicians and other organisations to stop H1B or limit the program.

Slowly but surely the demand for H1B reduced because companies found that sending work to India was cheaper. Then the next phase was to get a few consultants from the Indian offshoring partner during the final integration phase. So tons of Infosys, TCS, etc. employees would come to US for short duration on B1/B2 business visas. Some would be sent on a H1B visa. H1B quota was also reduced to 65,000 a year. The situation was so bad, that till a couple of years ago, the visas would get over on the very first day.

Then the second round of recession hit plus the USCIS and Labour department started making H1B a very difficult proposition for the companies who were sponsoring it. A lot more paper work was required for showing that you needed a foreign worker. So much so that last year the entire quota was not used up, not even half of it! Why? Simple, US clients were more happy with sending work offshore, Indians wishing to settle here realised that the earlier route of H1B and then Green Card was almost impossible with all the delays in green card processing. So the enthusiasm for H1B went down.

In the meanwhile many big players here realised that why pay the middle man when you can open your own shop back home? So you see lots of big names like Cisco, HP, Micrsoft, Google, Symantec, Adobe you name it and they are there in Bangalore and Pune and Noida. These big players opened their own shops there and prefer to send work out there as its now even cheaper than getting it done from the Big Five Indian IT firms.

So, this move to hike fees obscenely will only deter people from getting a H1B visa and will send more work back home. And no, this wont hike up prices of work in India because there is a lot of competition from other countries now like China who vie for the slice of the pie. Many companies in the valley have offices in China too as its cheaper to operate in China than in India.

So work will still get done at cheap if not cheaper rates in India and China.

The only thing that US companies really care about is the bottom line on the balance sheet. And thats perfectly fine business sense. So work will continue to be offshored, at same or cheaper prices, and will be farmed out to India to a large extent and to China in a growing extent.
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Old August 11th, 2010, 05:31 PM
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Re: Now Obama administration milking H1B visa fees

So, H1B quota will not be fulfilled? Will there be less than 65000 applicants for H1B?
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Old August 11th, 2010, 05:33 PM
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Re: Now Obama administration milking H1B visa fees

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So, H1B quota will not be fulfilled? Will there be less than 65000 applicants for H1B?
This year there already are less than 65K applicants. The biggest deterrent was the inordinate delay in the labour certification for green card which is stopping H1B aspirants who want to come here and settle with a green card.

Those who want to come here and settle want the H1B really because these days if you are with any good Indian IT firm, you get sent to the US anyways on business visa. So if you want to just have the thrill of coming here, working for a while and then go back to once more return in the future, B1 is the way to go through a good Indian IT firm.
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