Several companies have moved rapidly to take advantage of promised cost savings by outsourcing software projects to India. Most of these have collapsed due to fraud (IBMs recent finding that 18 million in sales were faked by it’s own subsidiary in India), the time difference, language problems, or simply bad results.
Instead, the new push was well bring the Indians here, and with the US Gov approving as many as 577,428 LCA applications in 2012, the numbers dwarf the available jobs and certainly dwarf the 30,000 jobs created in technology that year.
The H-1B is called a non-immigrant visa in much the same way that the Patriot act protects our freedoms or the affordable care act makes health insurance affordable. The truth is its a path to citizenship. Once a green card application is submitted in year five, the workers can stay as long as they like or as long as it takes to get a green card. So the temporary nature of it is a flat lie. And citizenship, coming from a slum nation like India, can be quite valuable to foreigners. So they are willing to work for less and suffer it out.
Another reason they can work for so little is they are often paid non-taxed kickbacks directly to Indian accounts. So one problem is that the Americans cannot do this and cannot therefore make a profit at the same wage.
But the biggest reason not to hire H-1B workers from India is the huge credentials fraud going on with their education and work experience. But even worse, the culture of fraud and bribery and kickbacks constantly comes out in lawsuits. Is this really what you want to import into your company.
But we are saving a buck and we hate smart people, say the american MBAs who always were pissed off they weren’t nearly as smart as engineers. We like stickin it to the american engineers they say. But ultimately they will suffer as their whole company is brought down.
Once a division brings in enough indians, the hiring managers only hire indians. The few Americans do not need to be fired, they will be unable to stand working with all Indian teams and leave quickly. This process snowballs until like at places like Adobe, you have half the lunch line dedicated to preparing Indian food.
Once this culture takes over, there are other insidious attitudes that set in. One is that quality does not matter in code. Most code is atrocious – look at Obamacare if you don’t believe it. The thing is, that’s fine for the first release, but now a new team has to upgrade and modify it. Well, they cant. So now the costs double. Also, while a team of four American engineers can get apps done in a few months, I’ve seen time after time teams of fifty to one hundred Indians struggle over and over because they don’t work well together or efficiently or they just never really went to college and aren’t very bright.
Slowly the death and gimme gimme culture pervades, people become defensive, and while this is limited to the IT area, so many great ideas come from bright American engineers out of IT that effect the whole companies product lines. In the Indian dark world, this never happens. Companies turn to mush and release products like Windows vista and wonder why people dont like the ridiculous tiny annoyances that pervade the software.
Bill Gates visits congress again. “We cannot find engineers” he becries and bemoans. Yet, qualified, what he means is, we can’t find engineers under 28 that we can treat like crap pay peanuts work long hours and who don’t care if they never can afford a house in Redmond. Most engineers, after 30, start thinking about family, affording a house, and also after years of experience, do demand a premium for it. And why not? Isn’t that the way of every other industry and skill? Doesn’t a partner Lawyer earn more than a junior just starting? Don’t doctors earn more than nurses? But this is precisely what they are out to crush. And they are crushing it with a army of four million H-1B workers (and another FOUR MILLION who got green cards) in the tiny little space of the software industry which only has four million jobs total.
Bodyshopping is another huge issue. Why is Infosys bodyshopping H-1B workers to IBM and Dell and god knows who (thats just a guess) when it is illegal to do so? The intent of a H-1B is for the company to use them directly. There was a senatorial letter stating this (was it sessions?). But still, the bodyshoppers are there in full force doing it.
Bringing on this culture of a death of knowledge and innovation can only end in corporate ruin, and the list of companies so far that have gone under or had sever problems after doing this “we can save a buck by hiring all indians” is long. So I hope the MBAs and the VPs and CEOs ask themselves this one question very carefully – “Can We Afford To Take That Risk” The answer is no.