By Moira Herbst
Even as job losses in the US mount, employers have stepped up the hiring of skilled workers from abroad, according to data from the US Citizenship & Immigration Services. The acceleration in recent weeks has put companies close to exhausting the 65,000 visas allotted each year for foreign hires under what's known as the H-1B program. Some 61,500 visas had been used as of Dec. 8, and the last visas are likely to be claimed within weeks. Once that happens, companies won't be able to use the program to bring in additional workers until October, the start of the government's fiscal year.
"The numbers are surprising, considering the state of the economy," says Ron Hira, associate professor of public policy at Rochester Institute of Technology. "With 15.4 million people unemployed in the U.S., employers should be able to find qualified workers here." The H-1B program allows employers to sponsor skilled workers from overseas for up to three years, with the possibility of extending for additional years.
DECLINING NUMBERS
The mix of companies receiving work visas is changing in ways that could dull at least some criticism of the program. In past years outsourcing companies, including many based in India, have received a substantial chunk of the visas. That's led opponents to charge that the program was being used to send American jobs abroad, since many H-1B employees train at client sites in the U.S. and then rotate back to their home countries to handle similar tasks. But the number of visas received by many non-U.S. outsourcers is declining. Of the top 200 recipients of H-1B visas in fiscal 2009, ended in September, offshore outsourcers got about 22%, or 5,663, down from 38% in fiscal 2008.
Non-U.S. outsourcers still claimed 6 of the top 10 places in fiscal 2009, although the numbers were off for the largest operators. India's Infosys Technologies (INFY) topped the list in fiscal 2008, with 4,559 visas, but last year got only 440. Wipro (WIT) was the largest visa recipient in 2009, with 1,964, down from 2,678 in 2008. Sridhar Ramasubbu, Wipro's chief financial officer for international operations, says the drop is the result of lower demand caused by the recession and changes in the company's workforce. "We're now operating in 58 countries," he says.
U.S. companies have become more active in the program. Of the top 200 recipients in 2009, American businesses accounted for 49% of the visas, up from 43% in 2008. Microsoft (MSFT) was No. 2 on the list with 1,318 approvals, while Intel (INTC) ranked No. 3 with 723. The chip giant says it's using the visas to recruit for high-skill posts in software and component design. "We only use visas for job categories with a [domestic] skills shortage," says spokeswoman Lisa Malloy.
With the Obama Administration struggling to create jobs, politicians are debating whether the visa program needs fundamental change. On Nov. 19, Senators Bernie Sanders (I-Vt.) and Charles Grassley (R-Iowa) introduced a bill to bar major companies that lay off U.S. workers from hiring foreign labor through H-1B and other programs. The legislation, which faces significant hurdles, would apply to companies that have cut 50 or more employees within the past year. "We have a responsibility to ensure that companies do not use the temporary guest-worker program to replace American workers with cheaper labor from overseas," says Sanders.
Herbst is a reporter for BusinessWeek.
Showing posts with label US. Show all posts
Showing posts with label US. Show all posts
Friday, December 11, 2009
Monday, December 7, 2009
Infosys Employee Ridiculed For Celebrating Christmas and Thanksgiving
There is a school of thought that maintains that non-Western peoples are simply not capable of sustaining—or assimilating to—the civilization of the West, that “East is East and West is West,” as Kipling put it, and never the twain shall meet.
Sam Francis, 2002
Francis correctly portrayed Kipling’s realism about multiculturalism but nobody can say that Promila Awasthi, an India-born American citizen, didn’t try to beat the odds to assimilate into our culture. Awatshi wanted to celebrate Thanksgiving and Christmas but was hassled by her bosses at the Indian owned bodyshop Infosys. Awashti’s bosses at the Freemont, California branch of Infosys were Indian nationals who routinely ridiculed her and her family for wanting to take part in those great American traditions.
The NBC Bay Area website gave the following account of the story:
Infosys management routinely disparaged Americans, including Mrs. Awasthi, as not having “family values,” and stated that layoffs in America are good because the jobs will be outsourced.
Infosys management ridiculed Mrs. Awasthi for celebrating the American holiday of Thanksgiving, telling her that she should not celebrate Thanksgiving because she is Indian, and that therefore she must work on Thanksgiving Day.
Infosys management ridiculed Mrs. Awasthi’s children for celebrating Thanksgiving, and called them “ABCD” short for “American-Born Confused Desi,” and “IBCD” short for “Indian-Born Confused Desi,” insulting terms used to criticize people of Indian ancestry who are Americanized.
Infosys management ridiculed Mrs. Awasthi for celebrating Christmas, saying that “we” do not celebrate Christmas, and that she should not celebrate Christmas. Infosys management repeatedly discussed the quality of Mrs. Awasthi’s work by explicitly commenting on their expectations for “a woman your age.”
The India Herald revealed more details of the story:
The complaint alleges that while working at Infosys, Mrs. Awasthi was routinely harassed by Infosys management, nationals of India, on the basis of her being an American of Indian ancestry and national origin, and on the basis of her age and gender. For example, the complaint alleges that:
· Infosys management ridiculed Mrs. Awasthi for celebrating Thanksgiving, telling her that she should not celebrate Thanksgiving because she is Indian, and that therefore she must work on Thanksgiving Day.
· Infosys management ridiculed Mrs. Awasthi’s children for celebrating Thanksgiving, and called them “ABCD,” short for “American-Born Confused Desi,” and “IBCD,” short for “Indian-Born Confused Desi,” insulting terms used to criticize people of Indian ancestry who are Americanized.
Awasthi is fighting for her right to be a fully assimilated American — and to get paid overtime if she is forced to work on those holidays, as required by California state law. On Novermber 23 Awasthi filed a lawsuit in Alameda County Superior Court against Infosys.
Sam Francis, 2002
Francis correctly portrayed Kipling’s realism about multiculturalism but nobody can say that Promila Awasthi, an India-born American citizen, didn’t try to beat the odds to assimilate into our culture. Awatshi wanted to celebrate Thanksgiving and Christmas but was hassled by her bosses at the Indian owned bodyshop Infosys. Awashti’s bosses at the Freemont, California branch of Infosys were Indian nationals who routinely ridiculed her and her family for wanting to take part in those great American traditions.
The NBC Bay Area website gave the following account of the story:
Infosys management routinely disparaged Americans, including Mrs. Awasthi, as not having “family values,” and stated that layoffs in America are good because the jobs will be outsourced.
Infosys management ridiculed Mrs. Awasthi for celebrating the American holiday of Thanksgiving, telling her that she should not celebrate Thanksgiving because she is Indian, and that therefore she must work on Thanksgiving Day.
Infosys management ridiculed Mrs. Awasthi’s children for celebrating Thanksgiving, and called them “ABCD” short for “American-Born Confused Desi,” and “IBCD” short for “Indian-Born Confused Desi,” insulting terms used to criticize people of Indian ancestry who are Americanized.
Infosys management ridiculed Mrs. Awasthi for celebrating Christmas, saying that “we” do not celebrate Christmas, and that she should not celebrate Christmas. Infosys management repeatedly discussed the quality of Mrs. Awasthi’s work by explicitly commenting on their expectations for “a woman your age.”
The India Herald revealed more details of the story:
The complaint alleges that while working at Infosys, Mrs. Awasthi was routinely harassed by Infosys management, nationals of India, on the basis of her being an American of Indian ancestry and national origin, and on the basis of her age and gender. For example, the complaint alleges that:
· Infosys management ridiculed Mrs. Awasthi for celebrating Thanksgiving, telling her that she should not celebrate Thanksgiving because she is Indian, and that therefore she must work on Thanksgiving Day.
· Infosys management ridiculed Mrs. Awasthi’s children for celebrating Thanksgiving, and called them “ABCD,” short for “American-Born Confused Desi,” and “IBCD,” short for “Indian-Born Confused Desi,” insulting terms used to criticize people of Indian ancestry who are Americanized.
Awasthi is fighting for her right to be a fully assimilated American — and to get paid overtime if she is forced to work on those holidays, as required by California state law. On Novermber 23 Awasthi filed a lawsuit in Alameda County Superior Court against Infosys.
Sunday, December 6, 2009
Infosys, Cognizant and UST Global amongst those shortlisted by Wal-mart
MUMBAI, Dec 4 (Reuters) - Wal-Mart Stores Inc (WMT.N), the world's largest retailer, has picked three IT vendors including India's Infosys Technologies (INFY.BO) for multi-year contracts worth over $600 million, the Business Standard said.
The other vendors are Cognizant Solutions (CTSH.O) and UST Global, the newspaper said, citing an unidentified source close to the development.
Initially the three vendors are expected to earn 2.5 billion to 3 billion rupees ($54 million-$65 million) each annually, which will rise as Wal-Mart increases outsourcing more work.
Infosys and Cognizant, which will provide application development and support, are expected to get a larger share of the contract, the paper said.
UST will be responsible for testing these applications, it said.
"What is more important is that these three vendors have now got a ticket to be in the club of Wal-Mart's list of preferred vendors which will help them in growing this account in the long run," the paper quoted the source as saying.
"We do not comment on market speculation," a spokeswoman for Infosys told Reuters.
Wal-Mart's media relations director, John Simley, said in am emailed reply to the paper: "We have a large and growing business and productive relationship with many Indian companies. We do not comment on speculations about the nature of any business relationship."
The other vendors are Cognizant Solutions (CTSH.O) and UST Global, the newspaper said, citing an unidentified source close to the development.
Initially the three vendors are expected to earn 2.5 billion to 3 billion rupees ($54 million-$65 million) each annually, which will rise as Wal-Mart increases outsourcing more work.
Infosys and Cognizant, which will provide application development and support, are expected to get a larger share of the contract, the paper said.
UST will be responsible for testing these applications, it said.
"What is more important is that these three vendors have now got a ticket to be in the club of Wal-Mart's list of preferred vendors which will help them in growing this account in the long run," the paper quoted the source as saying.
"We do not comment on market speculation," a spokeswoman for Infosys told Reuters.
Wal-Mart's media relations director, John Simley, said in am emailed reply to the paper: "We have a large and growing business and productive relationship with many Indian companies. We do not comment on speculations about the nature of any business relationship."
Thursday, December 3, 2009
Infosys to Nearly Double Work Force in U.S. Market
BANGALORE, India—Infosys Technologies Ltd. plans to nearly double its work force in the U.S. and remains on the lookout for acquisition targets in Germany, France and Japan, its chief executive said.
India's second-largest software exporter by revenue after Tata Consultancy Services Ltd. is planning to hire 1,000 employees in the U.S., Chief Executive S. Gopalakrishnan said in an interview.
The company, which had 1,200 U.S. employees as of March 31, had said in April it would hire more staff there. As of Sept. 30, it had a total of 105,453 employees.
Agence France-Presse/Getty Images
Infosys CEO S. Gopalakrishnan, pictured in April, said the company plans to increase its work force in the U.S.
Infosys gets about 66% of its revenue from the U.S. market. The company joins other Indian software exporters in gradually stepping up hiring to prepare for an expected increase in outsourcing deals as technology spending makes a modest comeback in developed nations.
The company has been trying to reduce its U.S. exposure by increasing its operations in Europe and Asia, which account for about 23% and 10% of its revenue, respectively.
"Ordinarily we look at a company of 10% of our size" for acquisition, Mr. Gopalakrishnan said, adding that a prospective target would have $300 million to $500 million in annual revenue.
He didn't provide details on the business segments it is targeting for acquisitions. Mr. Gopalakrishnan had previously said the company was looking to acquire firms offering services to the health care and utilities sectors to boost its consulting and outsourcing businesses.
Mr. Gopalakrishnan said Infosys's revenue growth in the next fiscal year, starting April 1, will be driven by new outsourcing contracts. But for this fiscal year, "we are looking at almost zero-percent growth," he added.
In October, the company had forecast $4.60 billion to $4.62 billion of revenue for the current fiscal year, down 1% to 1.3% from a year earlier.
Saturday, November 14, 2009
US Job losses, deep and enduring, especially for the young
NEW YORK: The rise in unemployment that has occurred in the current recession has been hardest on young workers, while having a smaller effect on
older workers than previous downturns. Women have been more likely than men to hold on to their jobs.
The overall unemployment rate, which reached 10.2 per cent on a seasonally adjusted basis last month, remains below the post-World War II peak of 10.8 per cent, reached in late 1982. But the proportion of workers who have been out of work for a long time is higher now than it has ever been since the Great Depression.
The persistence of joblessness for so many people – 5.6 million Americans have been out of work for more than half a year even though they have continued to seek employment – may provide the greatest challenge for the Obama administration if it decides to seek a new economic stimulus programme.
The short-term unemployment rate – the proportion of the work force that has been jobless for less than 15 weeks – has begun to decline, however, and stood at 4.5 per cent in October after peaking at 4.9 per cent in May.
That decline is a signal that the recession, which officially began in December 2007, probably has ended. In past recessions since World War II, the National Bureau of Economic Research has always dated the end within two months of the peak in short-term joblessness.
Over the last three years – since October 2006 – the overall unemployment rate has risen by 5.8 percentage points. That is the largest such increase since the Great Depression, providing another indication of the rapidity and severity of the current downturn.
Before this cycle, the sharpest 36-month increase since World War II was a 4.9 percentage point rise in the period that ended November 1982.
A government household survey in October found 7.7 million fewer jobs than in December 2006, when the employment-to-population ratio reached its high for the current cycle. The declines during the two earlier cycles, from November 1973 to June 1975 and from December 1979 to March 1983, were 0.8 per cent and 2.0 per cent, respectively.
Women have held on to jobs better than men have during this downturn, reflecting a pattern that prevailed during the previous cycles.
One major difference is how older workers have fared. The number of jobs held by men over 55 is up 5.6 per cent since the cycle began, and the number of jobs held by women of that age has risen by 9.3 per cent.
There are fewer jobs for workers age 54-64 than when the cycle began, but that group has done much better than younger workers.
By contrast, younger workers were more likely to hold on to their jobs in the two previous downturns.
It is not clear why that pattern has changed. It is against federal law to discriminate against older workers, but that law was passed in 1967, before either of the previous downturns. It could be that the plunge in real estate and stock prices in 2008 led fewer older workers to decide to retire.
The proportion of the work force out of work for more than 15 weeks reached 5.7 per cent in October, well above the 4.2 per cent figure reached in 1982. That had been the highest such figure since the government began calculating the number in 1948.
The proportion that has been out of work for at least 27 weeks – half a year – is now 3.6 per cent, also a record.
The overall unemployment rate, which reached 10.2 per cent on a seasonally adjusted basis last month, remains below the post-World War II peak of 10.8 per cent, reached in late 1982. But the proportion of workers who have been out of work for a long time is higher now than it has ever been since the Great Depression.
The persistence of joblessness for so many people – 5.6 million Americans have been out of work for more than half a year even though they have continued to seek employment – may provide the greatest challenge for the Obama administration if it decides to seek a new economic stimulus programme.
The short-term unemployment rate – the proportion of the work force that has been jobless for less than 15 weeks – has begun to decline, however, and stood at 4.5 per cent in October after peaking at 4.9 per cent in May.
That decline is a signal that the recession, which officially began in December 2007, probably has ended. In past recessions since World War II, the National Bureau of Economic Research has always dated the end within two months of the peak in short-term joblessness.
Over the last three years – since October 2006 – the overall unemployment rate has risen by 5.8 percentage points. That is the largest such increase since the Great Depression, providing another indication of the rapidity and severity of the current downturn.
Before this cycle, the sharpest 36-month increase since World War II was a 4.9 percentage point rise in the period that ended November 1982.
A government household survey in October found 7.7 million fewer jobs than in December 2006, when the employment-to-population ratio reached its high for the current cycle. The declines during the two earlier cycles, from November 1973 to June 1975 and from December 1979 to March 1983, were 0.8 per cent and 2.0 per cent, respectively.
Women have held on to jobs better than men have during this downturn, reflecting a pattern that prevailed during the previous cycles.
One major difference is how older workers have fared. The number of jobs held by men over 55 is up 5.6 per cent since the cycle began, and the number of jobs held by women of that age has risen by 9.3 per cent.
There are fewer jobs for workers age 54-64 than when the cycle began, but that group has done much better than younger workers.
By contrast, younger workers were more likely to hold on to their jobs in the two previous downturns.
It is not clear why that pattern has changed. It is against federal law to discriminate against older workers, but that law was passed in 1967, before either of the previous downturns. It could be that the plunge in real estate and stock prices in 2008 led fewer older workers to decide to retire.
The proportion of the work force out of work for more than 15 weeks reached 5.7 per cent in October, well above the 4.2 per cent figure reached in 1982. That had been the highest such figure since the government began calculating the number in 1948.
The proportion that has been out of work for at least 27 weeks – half a year – is now 3.6 per cent, also a record.
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