Trump Designing Work Visa Overhaul: Report


Even as his current executive orders regarding immigration continue to draw controversy, U.S. President Donald Trump reportedly plans to issue a new directive that could totally overhaul existing work-visa programs.

According to Bloomberg, which claims it obtained a copy of the draft proposal, visa programs for “foreign workers” will be “administered in a manner that protects the civil rights of American workers and current lawful residents.” If enacted, the order will also prioritize “the protection of American workers—our forgotten working people—and the jobs they hold.” In addition to the H-1B, the draft order also covers other visas such as the L-1, E-2, and B1.

It’s impossible to tell at this point whether the final order, if issued, will follow the contours of this draft. In its current form, the order gives priority for visas to those workers offered the highest salaries. It would also re-emphasize the need to seek out and hire American workers before expanding the search to other countries. A report on which companies are using visa-powered labor would appear near the end of the federal government’s fiscal year.

Trump isn’t the only politician looking to reform the visa system. Earlier this month, U.S. Representatives Darrell Issa (R-California) and Representative Scott Peters (D-Calif) introduced a bill titled the “Protect and Grow American Jobs Act,” designed to raise the minimum salary requirement (from $60,000 to $100,000) for anyone trying to obtain an H-1B in order to work in the United States.

The current cap on H-1B visas stands at 65,000 foreign workers, with an additional 20,000 for workers educated in the United States. Most go to companies in the technology industry; according to the U.S. Citizenship and Immigration Services (USCIS), some 65 percent of the H-1Bs approved in fiscal year 2014 went to tech workers.

The H-1B has attracted its share of controversy over the years, as critics have accused some U.S. companies of leveraging the program to replace American workers with cheaper ones from overseas. However, others defend the program as an engine of growth and innovation for tech firms.

At a December meeting with Trump in New York City, prominent tech executives such as Tesla CEO Elon Musk and Apple CEO Tim Cook reportedly discussed potential modifications to the H-1B program, including raising the cost of applications. If Trump does issue the executive order, trust that it will send those executives—and tech companies in general—scrambling to adapt.

46 Responses to “Trump Designing Work Visa Overhaul: Report”

  1. Arijit Dasgupta

    I have seen how the offshore folks took away my job . I had to train them and the US corporate greed kicked me out once the training was done. Funny thing is I tried job offshore and no body shopper or corporate would be ready to help me back home for finding a job. Now its time that Corporate America needs to bring back the job which belonged to me and I should be retrained from the folks who had taken the jobs away from me. Tit for Tat. Both for Corporate America Greed and body-shoppers. Make America great again

  2. When you are reporting on h-1b, please go the extra mile and include quotes from displaced American workers that had to train their h-1b replacements. There are ton of examples of this. I.e. Disney. Many Americans have seen their it jobs taken by cheaper h-1b, or, like me, had their good it job offshored to cheaper workers. I call MAJOR BS on their being a lack of skill in America. It is simply about lowering overhead and greed at the top levels. Stop trying to paint h-1b as a noble initiative. It is not.

  3. ReplaceTheGOP

    YES! So GOVERNMENT agencies like my local SDG&E can’t replace American employees and FORCE them to train their ‘cheaper’ foreign replacement! Not an EVIL private company… no, a government utility!

    “According to Bloomberg, which claims it obtained a copy of the draft proposal, visa programs for “foreign workers” will be “administered in a manner that protects the civil rights of American workers and current lawful residents.” If enacted, the order will also prioritize “the protection of American workers—our forgotten working people—and the jobs they hold.””

  4. Christine McDonough

    As an American IT worker, I don’t find this comforting. I believe the salary requirements will be utilized to lure people from other countries to the US to work at even lower salaries in IT, driving American IT worker’s salaries even lower.

  5. HP is the largest abuser of workers and guilty of unethical behavior in shipping jobs overseas of any company I’ve been with. Their actions were to “surplus” workers under the guise they had no work for them, but the reality was they just moved the jobs offshore and refuse to rehire any of the former employees. I would like to see them made an example by some punitive means for this traitorous action and slap in the face to the US employees that built the company and then were tossed out like so much garbage. This is in regards to the reduction in force actions that began in 2012 spread over many more years afterwards. I don’t know the exact numbers but I would estimate it affected over 30 thousand workers in the US.

  6. The big problem is offshoring of jobs, not the H-1B people. They are not the same thing, everyone needs to stop confusing the two. Raising their salary to 100K is a good idea. H-1B’s pay taxes here and buy US goods and services. Off-shore jobs only hurt us. L-1 visas are another scam that must also be shut down. L-1 is using a foreign employee and paying them in their home country (very cheaply) for work done in US.Let’s stay focused on where the problems are and not just listen to sound bites on the news.

  7. I am not one to post comments and I am not a Trump supporter, but I do agree with government taking a closer look at how the h1-b visas are being used. I am sure there are legitimate uses for them in more specialized tech areas, but I watched really good and highly experienced IT colleagues be laid off year after year only to be replaced with both onshore and offshore foreign workers with nowhere near the experience or knowledge. It got to a point where I did not feel I worked in the US anymore. IT consulting companies apply for large numbers of these visas and then contract the workers out in positions that are not specialized, where there are definitely available Americans with more than adequate skills. In short, they are abusing the system for financial gain, not because qualified American workers are not available.

  8. Obama “doubled” H1-B’s by issuing work visas to “spouses of H1-B holders” This needs to be canceled and existing ones pulled.

    Having companies bid on H1-B’s by salary would help curb the abuse — however, I can imagine ways for this to be abused as well. That said, the entire H1-B and L-1 visa programs need to be eliminated in their entirety. These policies are a cancer and will metastasize despite any efforts to control them.

    Remember, all the tech companies have Democrats in their pockets. That means when the pendulum swings and Dem’s regain power (OR Republicans sell-out – more likely and sooner) whatever is in place will be used to crush American jobs and salaries again.

  9. A wonderful as well as delightful breath ‘o’ fresh air, yes?! It’s about time!!

    American IT pros have been under fire from of not only American companies but the many Indian companies stealing our jobs by applying “the cheap.”

    Go into almost any US company. Count the number offshore IT people. What exactly are they doing here? What makes them different? The cost for the most part.

    Bring our IT jobs back home!! Time to end visa abuse!! Especially, L1 intracompany vise.

    Put a halt or choker collar on big biz lobbies. Put a halt or choker collar on immigration law lobbies making it easier for businesses to process through foreign workers. Put a halt or choker collar on foreign so called consultancies shoving offshore workers down our throats by the thousands.

    Yes, there is a certain feeling of tit for tat as mentioned by someone else. Enough is enough!! As an independent consultant, offshores have kept hourly rates in the toilet with enablement of our own American citizens. These super important roles need to go to American pros and their families. How would you feel having to give up your job and livelihood to a foreign worker knowing all the while that you perform it so much better and pushing back on the BS that we don’t have the skills! Perhaps we’re onto something great again!!

  10. John Bryant

    Please people…the problem isn’t lack of education, not being qualified or competent for the position. The Americans losing their job to H1Bs are more educated, more qualified, and better at their job than the person taking their job. A bigger problem actually is you don’t get an IT position to begin with very easily, so not necessarily losing a job. The Indian H1B candidate seems to win out the majority of time…especially in certain markets. I live in north Atlanta area…my god the IT scene here is all Indian, almost all contract positions now. How could possibly so many of them be here in the states taking all these jobs, this is the biggest problem by far affecting the middle class, it isn’t Mexico.

  11. One thing you failed to mention in this article about H1B visa’s is the fact that lobby groups like get a hive mind of worker’s back in India for every one they bring here… so they know it’s not about the best and brightest, it’s about getting 20 workers for the price of 1 of the best and brightest…I’ve worked for these Indian corporations and they outsource a lot of the work during twice a day meetings with their on shore workers… so I get to standby on unemployment while they get a 6 year visa / job… meanwhile my student loans keep going up as I’m sure many other’s do too.

  12. I agree with @SJT, offshoring is a much bigger issue, and it is already more ROI attractive than visas for Corporate. And it’s not just about IT jobs, all engineering and manufacturing jobs are affected.

    What is Trump doing about that ?!

  13. It’s hard to imagine real people as painted by the trolls. Arijit who wishes to eliminate opportunities for millions of his own heritage. Jo who feels threatened by increased competition from the spouses of his competition and can’t conjure a time democratic administration ushered in an IT boom.
    The American worker you paint is a coward. He laps up deregulation demagoguery while panting for regulation to let him treat a job like property. He preaches competition, but wants none. I feel no solidarity for him. And the only upshot to Trump is that he’s too inane to give him his protectionist paradise.
    As an IT worker, I only ever felt pity for H1-Bs. They’re exploited.

  14. H1B and other programs need to be revised, hopefully in intelligent and legal way by congress. Current system allows companies to extract more profit by paying foreign workers less. It is cheaper to lobby (real name should be bribe) government than to pay fair wages to most qualified people, local or foreign-born.
    One company alone cannot be ‘honest’ in competitive environment, that is why you need to correct legislative framework. Laws already in existence need to be enforced.
    2nd and more difficult issue is transfer of jobs within the company to overseas offices. H1B has nothing to do with that. Many examples when perfectly qualified people in US are let go and their job is moved to company office in country X.
    3rd issue is in education system. ‘Talking heads’ on TV keep saying that ‘there is not enough qualified people in US, so we have to bring people from overseas’. Educational opportunities in US, especially in advanced STEM are limited and many US students cannot get in because a lot of them (often more than half) go to J1 visa students. You often see kids from high school competing with fully graduated engineers form other country with 3-5 years of experience working in the industry. It is not even funny. Universities probably prefer foreign students because they pay in full. This has to be taken into account. I know plenty of bright kids who want to go to STEM but get slaughtered in the admission process.
    This discussion has to be handled professionally and calmly on fact-based macro-economic level. Unfortunately, it is often denigrates to us vs. them or stupid identity politics or special interests turf war using weaponized corporate media.

  15. Folks,
    Unless the way you think changes you can’t see the truth behind it..said by some great Bla bla..
    H1b’s are working only for private companies. Why private companies are hiring H1B’s and investing?
    Any company thinks of their profits, if you have a company, don’t you think in that way, how you can maximize your profits. These H1B folks put their heart and soul, they work for 16 hours, even they work on weekends. How could the company not think of considering them.
    If you try to propose more changes to H1B restricting people to come to US, US is forcing themselves to move back. Companies are ready to establish their centeres outside US and they are ready to operate. How can you stop this?
    Inspite Indian companies will be benefitted in the offshore as more companies will offshore their work if they are restrictions on the H1B.
    This will not enforce Americans to get jobs. Off course there might be situations where our jobs were replaced but it even happened to me too.
    The complete onsite work was given to a Indian IT company as an engagement model and they offsourced so much of work.
    Think in this way…
    Do you think those jobs will be given to Americans?

  16. I have worked in IT for almost 30 years. What I’ve seen for the past decade is disgusting where thousands and thousands of HIGHLY qualified – HIGHLY competent IT workers in all areas have been disgarded in order to bring in foreign, mainly Indian, workers to replace the American workers.

    All too often it’s the American workers who train and menton the Indian workers, yet the Indians VIRTUALLY NEVER help the American workers.

    It’s not ONLY about money, but these Indian workers openly and blatantly discriminate against American workers in order to ONLY hire more Indians.

    This is no lie or exageration, but the complete and honest truth.

    I have seen thousands of brilliant American IT workers, who helped develop much of our current technologies be terminated after being forced to train their Indian replacement.

    If you think that the “rape” of America’s manufacturing industry was bad, you need to realize that what’s happening to America’s technology industry is MUCH WORSE.

  17. I don’t like Donald Trump one bit, but I support eliminating H-1B and L1 visas immediately. Entire divisions of companies like Microsoft are staffed completely by Indian and Chinese H-1B holders. These programs are long past their expiration date and need to be done away with.

  18. San Fernando

    The reality is that Tech companies are just a plain bad environment. So many older workers get out of a job and replaced by two younger workers which they can get at a cheaper price. The Tech Environments think they are ultra cool but the reality is they are as false of a face as say a Mark Zuckerberg going to Kaui and take out the local land owners over there. Nothing cool about that buddy.

    Forget the fact if you ever work for a call center. You are then doomed.

  19. @David – Regarding “20 workers for the price of 1”
    That clearly is not the case – even citing the details listed in the article above. The threshold for an H1B visa holder is $60,000. It’s doubtful that any american being replaced is making 20*60,000 == $1.2 million. The problem in tech is not H1B visas – it’s offshoring, as a few other people have noted here.

    Plenty of the commentary supporting drastic limits or removal of H1B visas accompanies a stories of outsourcing rather than H1B visa holders taking their jobs away. I’d support a rise in the minimum salary an H1B visa holder must make – along with an *increase* in H1B visa holders. I’ve worked along side a number of H1B visa holders – and most all of them were highly intelligent – ones I have learned from.

  20. Troll Boy

    Many of the people commenting here are not smart enough to do the jobs taken by the H1-B people. To those who trained their replacements – Welcome to life in the big city. The world doesn’t owe you anything. Make yourself irreplaceable or be replaced. You want a FREE MARKET right? Or wait, wasn’t that a Replublican thing? Hard to keep up with the latest opportunistic change of idealogy. Ugh.

  21. I was in an IT position and received rave reviews yearly for my hard work and ability to exceed goals. Then they hired a new manager from India who used bully tactics to try to get me to quit. It became a hostile work environment but I refused to give up. Then got the news one day my job was being sent to a team of 5 in India. They brought two of the guys over for me to train. It was humiliating, they wouldn’t pay attention or take notes and spoke in Hindi to each other while I was trying to train them and would laugh to each other. These guys didn’t even understand how to use Excel spreadsheets let alone SQL! Indian manager threatened me often that if I didn’t train them well enough they’d withhold my severance pay. I made these guys sign a document on my last day saying I trained them thoroughly and they had no questions and gave it to the manager. This went on for 90 days of pure hell. Dan Rather heard about my situation and included me in a special he did on Americans who lost jobs to H1B visas. I’m happy we finally have someone in DC who’s taking an interest.

  22. >> The current cap on H-1B visas stands at 65,000 foreign workers, with an additional 20,000 for workers educated in the United States.

    This is a very popular LIE. In FACT, the number H-1B visas issued has AVERAGED more than 260,000 per year for the past 15 years. See “H-1B applications approved”) Instead of a “temporary” visa (good for 3 years – which seems a bit long to be “temporary”), these visas are routinely renewed for an additional 3 years after which visa holders often apply for citizenship – a determination that can take up to two years (during which they continue to hold an American job). If approved, the “temporary” “3-year” visa converts to PERMANENT.
    Estimates of the number of H-1B visas currently in effect range from 1 million to over 2 million. To create 190,000 new jobs each year for the next three years, it would only be necessary to follow the law and limit H-1B visas issued to 65,000. To create an additional 95,000 jobs per year (assuming just half of H-1B visa holders renew their visa at the end of 3 years) it is only necessary to halt renewals.

    These are, of course, only the DIRECT effects. Since a large percentage of the salaries of this foreign labor is sent back to countries of origin (some estimates are upwards of $50 billion a year), keeping those salaries in the U.S. economy would stimulate other jobs as well – perhaps as many as two jobs for every job recovered from the H-1B program. Thus, by simply holding the H-1B program to its DESIGNED parameters, the government could create as many as 885,000 new jobs for each of the next three years – or a total of more than 2.5 million jobs.

    During the eight years of the Obozo regime, about 1 million new jobs were created. According to, “The Immigration Handbook”, ALL of those jobs went to non-Americans, while the US population increased by 11 million. In effect, by simply following the law, Trump can do 250% more for Americans in three years than Obozo did in eight.

    Note this does not even take into account visa abuse under other programs like the L-1 visa program.

  23. At least, the good news from this article would seem to be that President Trump has an awareness of a problem in the VISA program. I would hope that any actions that are taken are comprehensive enough to actually be a solution, and don’t create a new program that gets gamed by corporations.

    RE: Microsoft’s near-exclusive employment of H1B Indians and Chinese: Look at the new Windows 10 that group has produced.

  24. Targeting H1bs has become fashionable and easy. It is correct that when you step into any company’s IT/Tech department, you see tons of South Asians and Chinese workers. But there is more to it than what meets the eye. The H1B workers are still limited in number. They wouldn’t be here if greedy American corporations didn’t think of maximizing profit. Software is just one piece of the puzzle. America did away with manufacturing jobs. Literally everything you can pick up at a departmental store is “Made in China”. It’s time to bring all those manufacturing jobs back. I am ready to pay a little more for goods made here in the US than those made overseas. Restricting the number of H1b holders or making their life miserable is not the solution. The same corporations which outsource their work can and is already outsourcing whole divisions and teams. That’s even more dangerous than hiring H1b workers. At least they are paying taxes, buying homes, spending money right here in the US helping the local economy. The direction US and software in general is complete automation. There won’t be many jobs left for the average software engineer. Only for those working in the cutting edge areas of Technology like Artificial Intelligence, Big Data, etc, will be able to find jobs going forward. A county/government needs to create jobs for their masses. “Survival of the fittest and greediest” mantra will not help run a country.

  25. Bob Johnson

    Well… I suppose my opinion is informed. When you sponsor a H1B visa for a very talented person what your really doing is creating a beachfront for a raft of people who work behind the scenes. I honestly don’t see how it is possible to change this? From a business perspective it’s hard to argue with getting 20 working in India on code vs 1-3 in America for same amount of money? Without a doubt. I knew this. What upset me was they would then move that sponsored person to another project quite often not even with your company. Rinse~Repeat. It is a complicated issue. The way things are now you don’t need to sponsor someone with H1B. Just bring your Indian PM counterpart over for a few meetings and then you orchestrate together the entire workpackage offshore. Have internal administrators port it back into a testing environment by subject matter experts.

    American Project Managers with experience and success operating with this model are going to see opportunities.

    What we should really question was the dash to ship all Technical Product Knowledge to India and China? Even as I diligently worked to do so I knew it was suicide for the business. That intelligence was garnered Globally over decades and we just handed it all over. China has no respect for Intellectual Property. If they can steal it or better yet have it handed over to them fair game. It was as phenomenal as the Smog in Beijing.

    sigh…What a mess! Without having government involved in operations of a private business how exactly can we change this? The relationships are established, the worksharing is established. It does not matter where the work is done now. Cutting into H1B visas will only be a nuisance at this stage. Yes it’s short sighted, but that is relied on. The short sighted 4 quarters of a Fiscal Year. I was a little more optimistic before I sat down and wrote this. Now I see the end game a little more clearly. It must be like this every generation? So I may somehow eek a career out of all this only to erode the next generations education and outcomes. Well at least it is being talked about and considered. the last decade not so much…

  26. Everyone wants to talk about the H1B and everyone wants to talk about their jobs going away overseas but nobody wants to talk about companies like Verizon companies like Apple who have centers overseas – with which they own – where workers are not on any type of visa. Call centers in the phillipines, etc. those are the people that took your jobs and this plan to “save jobs “does not address that. H1Bs are given to workers who come from other nations to the United States to work. At least here, they participate in the economy and pay taxes, versus pure outsourcing to other countries on NO visa. So before everyone rallies like they do for Trump as much as they do, do yourself a favor and scratch 1 inch below the surface of anything that he says and you’ll realize that no problems are being solved here and everything is at face value. On paper it sounds like he is gaining American jobs, ask yourself really what is he doing outside of encouraging companies to think of more creative ways to get rid of American jobs. Which None of this addresses.

  27. Please keep in mind that a large % of the people that voted for Donald Trump and will continue to support him are the decision makers that decided to either off shore services or replace existing on site with a worker paid less who happens to be from another country. They did this with the intention of lowering costs, which will not change. The question is if there is a change to the visa policy, how will they react? Will they raise those wages and lower their profit margins? Probably not. I suspect that more jobs will go off shore or…take other creative measures which will protect the $$$

  28. Scott Lee

    The H1B system has been increasingly abused, and giving it a “reset” will help; completely deleting it would help more as the system is being gamed so much by so many that any change that is not thorough enough, or does not carry real and strong penalties for abuse, will have minimal impact.

  29. There needs to be immediate reform to the H1-B and all Visas, frankly. I have seen this system abused, and mostly in the sense that many (most) H1-B offerings are not required to make a Nationwide job-posting or search. Let’s start there and see if there is not actually someone willing to move for a job like these, too. I’d bet there are people who would; they just don’t know about some obscure posting at an employer’s website which might only post 10-days as this H1-B ‘priority’ firm often has know lower-level visa holders will be ‘encouraged’ to apply for this type of gig.

    Let’s add also: I don’t hear a lot about US workers rapidly applying for gigs on other countries — is there a reciprocal and equally-based incentive to acquire US talent abroad, aka, the rest of the world? I don’t know of any; but it might be available. I just never heard from any colleagues about their ‘great experience’ having a job visa in the EU, Japan, China, etc.

    My sense of this H1-B system is for some 65,000 (capped) foreign workers to be allowed to have a gig in the US, when they cannot or do not have a firm that will hire them in their own country of origin. Many of whom could not get a gig as there might not be as many jobs in their field of study or expertise.

    H1-B is not a bad program and need not be abolished, but it does need to be a real need and not a convenience for hiring within from lesser work visas (J-1, H-1) simply as a process to obtaining full-employment after graduation.

    Another notion is: many of the students who finish Uni, don’t do what many US unis hope they will do — return with their education to their home-country and work at improving their own conditions there — it seems many seem to stay, in order to get better-paying job(s) in the US; then tend to either send money back home to family, or apply for citizenship and migrate their families to the US. Keeping in mind, when compared to some countries who are in need of development and infrastructure — coming to a country where much of this is already established is much to their advantageand highlt desired. I don’t mind people bettering themselves and coming to the US; but I do mind if they don’t pay their dues just as my great-grandparents did when they migrated here from Europe. It’s not fair to give gigs to folks who take the gig away from someone’s family has been here much longer, generations, and integrated as well as paying taxes by families for decades.

    Trying to argue ‘we’re all (equal) immigrants’ is not really true. This country for the past 100 years into modernity had to be built on the backs of the people’s families who migrated mostly in the late 1800s. These descendants need a better chance than ANY person who just wants to come to the US as with an H1-B. It’s not fair to the people who migrated here and grew their families and businesses with hard work and personal sacrifice, to suddenly be displaced by any person who has not done the same. To suddenly pre-empt approval (or by-pass) this process, is completely unfair. Simply to allow immigrants to get an H1-B, because some students come here and do have talent should not be a ‘right’ to simply take gigs away from generational descendants.

    Heck, there’s an argument to be made the H1-B should only be given in the _rarest_ of circumstances; and companies need to pay to train US talent / people for jobs they need filled (or scholarship for it via Unis to get them trained?). The H1-B was originally designed as a way to get and keep the best and brightest who offered something _more than_ any other American could offer. Not a panacea for any students and persons who want to live and work here, without paying their dues.

    There is the exception of the 20,000 visa holders who work at Unis, who enjoy their status at Unis under an H1-B. I’d argue these should stay and even be expanded to incorporate some of the other 65,000 being displaced. This is especially true when working towards an PhD and/or moving to (into) a tenure-track Uni position.

    I’d argue it’s in the US’s interest to take care of the people who built the country; not for those who just want to get a job here as they cannot get one (in their discipline) in their own country.

  30. Mckesson Corporation hires so many H1 workers every year to save money. They have laids off pretty much all technicians, Backup operators and hired overseares ove rthe time frame of 10 years. Now Mckessons Majority 80% of Tech Support runs from india. 🙁

  31. You can’t profit from globalization without straining someone. Next time, consider voting for someone who will take on the people that gave “your” job to someone “foreign.”

  32. All big companies manufacture their goods in China to save cost and earn huge returns in USA and proudly display tag “Designed in California and Made in China”. This should be done in US to create more jobs in manufacturing sector.
    US gov receives huge amounts of revenue from H1B/L1/B1 etc visa holders every year just from visa fees, extensions. All these guys pay huge taxes for staying in US. Lot of them go back to their home country after doing work for few years. Now the money which they contribute to Social Security, Medicare as part of tax is huge revenue to US gov as they us gov doesn’t give money to guys who have left US. In addition to this lot of them are highly talented and bring lot of innovation in the country. I think offshoring might be something which need to be reconsidered for creating more jobs in US.
    Think logically !!!

  33. just dude

    These are all anecdotes or emotional lashing out against H1Bs. Where is the cold analysis? How will you fix it if you do not understand what is going on?

    I will start with the basic principle: _Follow the money_

    1) The CEO orders FT IT positions be outsourced to another country, say C1, saving gazillion dollars for the company and taking his bazillion dollars as a cut/bonus. _He will also say the company is moving into new technologies_. This gives the dog whistle to market that this is not company’s last hurrah, and exciting times are ahead for this leaner meaner company. This order is filtered down to tier1 management. *MONEY ALERT*

    2) If lowest level jobs are outsourced, there would be no need of tier1. Tier1 has to be let go too. Then tier2 and so on. Since this is not tier1’s first rodeo, they know this. Tier1 then scrambles and brings in contractors from a company, say Dotcom, with presence in the country C1. This is done under the banner of “knowledge transfer”. These MUST be contractors and cannot be FT, since ONLY FT affects (1) above, not contractors. Also, these contractors must be citizens of C1, since they have to go back (presumably). Dotcom brings in contractors from C1, who are bonded by their VISA laws to Dotcom, otherwise why would they go back? For choosing Dotcom as the outsourcer, Dotcom gives a cut to Tier1 for each hour on each head of contractor. This loot is passed up to higher tiers too. *MONEY ALERT*

    3) Market sees (1) and rewards it by buying company shares and ticker of the company goes higher, _disproportionatly to the savings in (1)_. Most management holds or given stock options. Higher stock thus directly makes management richer. *MONEY ALERT*. This also indirectly translates to more cash for the company _thorough creditors (i.e borrowing more at lowered rate), increasing sales and/or product prices due to better stock market “status” and also, somewhat limited equity financing (i.e. sell more shares to public)_ *MONEY ALERT*. Part of this new influx of money via borrowing, equity financing and sales is passed to Tier1 to start new “projects” in “emerging technologies”. Hiring for FT begins again through vendors.

    One might ask, when you have outsourced the jobs, why not ask the offshore workers to do the new “projects” in “emerging technologies”, and fire tier1 and above? (4) below answers it, if not already clear.

    4) Vendors give a cut to Tier1 for each of their candidates hired. This loot is again passed up to all tiers. *MONEY ALERT*
    Now we are again back to where we started. 1, 2, 3 and 4 can be repeated till everyone is blue in face and green in pockets, squeezing more and more money until the bubble pops and people who invested in the company lose their savings and retirement. *MONEY ALERT*

    Obviously there are many more “loops” feeding off the stock market. Outsourcing is just a tiny one of them.

    Incidentally this was done to manufacturing. But manufacturing could not be looped around for rinse and repeat. There is no “emerging technology” for a paperclip, ladle or a ceramic mug. The general public and big investors, do not understand software. For them, a touch launched “app” is space age, whereas double clicking with a mouse on an icon is stone age. Hence everyone buys into the notion that a mouse/icon based developer is not suitable for touch app development. They see the gap where none exists. Besides, they too do not want to disrupt the loop.

  34. swiss choc

    Simple fix. If you do not own the IP of the work done by your employee, YOU DO NOT GET TO BRING HIM/HER ON H1B/L1/L4!!!

    This will get rid of most big names gaming the VISA lottery. This might outsource more jobs in the short run, but any new jobs will be on level field.

    And yes, let the bidding start on the H1B employee salary. Also, look into unchaining the freaking alien from the “employer”.

  35. A few years ago an Immigration audit found that virtually EVERY B1 visa used by INFOSYS over a multi-year period was – ahem – improperly used… INFOSYS settled by paying a $30million find and the next month laid off American workers (to try to keep their margins intact, no dount).
    I am still waiting and expect that I will never see an audit of H1b and L1 visas.
    Our government has been complicit in the mismanagement of these visa programs and caused harm to American STEM workers.
    I have great hopes that we will get some relief with the Trump changes.

  36. Neil and Ana Carusetta

    Very glad I voted for Trump more and more each day. The US university system has been graduating ~ 70K CS and MIS yearly for the past 15 years and enrollment in CS programs is up ~ 13% each year since 2014. While even BLS projects on average ~ only 45K net new computer systems and software engineering jobs will be created each year in the US. So there is more than plenty of US graduates supply, and pretty much no need for the 100K plus H1B and L1 visas each year (except for some very uncommon specialized skill sets), that is unless you are one of the largest US tech firms or foreign consulting agencies that want cheap, docile and immobile labor. Cautiously optimistic that Trump will be able to fix these abuses at the expense of the US IT worker.

  37. @Phil H
    “Simply to allow immigrants to get an H1-B, because some students come here and do have talent should not be a ‘right’ to simply take gigs away from generational descendants”

    This was meant to ensure that the US was able pull away the best talent from around the world. Now that the US is at the cutting edge of stuff, this is no longer required as the cutting edge people are already. There are some who argue that countries like China are churning out 10 times more STEM people that the US, but is that important… the people that count will be here already.

    “I’d argue it’s in the US’s interest to take care of the people who built the country”

    This is the basic reason for having a country, to protect the people within it (at least a free one).

  38. say what

    folks that are IT trained but are unable to get an IT job, i have a suggestion: go via the proper channel. go thru the vendor and sub-contracting companies. these companies seem to have a “hold” on the hiring managers. does not matter what that “hold” is, that is not important. do not listen to nay sayers. it would be good if the system is fixed, but do not hold your breath for it. go get yours!!

  39. Its not just the H1B’s that are affecting the American workers but also the F1 Students, who sell for cheap using fake resume and forged H1B documents ( I797A). I have seen students specially from India get into a IT Staffing company which indeed helps these guys find a job through 3rd party companies. these workshops of IT staffing should be taken down first. I happened to speak with “n”number of these students asking about their fake Visa ( H1B) . they smile and say nobody reports to ICE or DHS as even they know it as a open secret. Mr President should look into the ground first before targeting the sky. if he or the government takes a strong action on these students who violate the F1 status knowingly must get deported from the US for good. i think no more arguments will happen.

  40. IndianWhoSeestruth

    As an Indian who works in the IT field, I myself am a victim of the VISA fraud that is happening in US. When I started my career in 2004 in India, I worked with some US returned Indian individuals who had spent about 10-12 years in the US in a prime technical company that verified RTL simulation for VLSI products. They were people managers with zero technical skills but were well reputed in the US company for some reason. I digged deeper and then I found out that these were people who had no STEM education, but used some headhunting outsourcing fraudster who fill in resumes with fake stuff and entered the companies in loads in the US. So this was way back in the lat 90’s. By this time in the 2017s they have already sucked high and dry the whole system to the point where my American friends repeatedly tell me that their parents advise them against starting work in the tech industry. Let me tell you that some of the best engineers are I know are still Americans and not Indians. Let me tell you some of the secrets that Americans don’t even know. India is a large country and it is not like more Indians are smarter or an average Indian in smart. So by law of averages a country with 1.3 billion people with reasonable access to education do come up with atleast 10K young children per year who would easily score around 130+ in IQ scores and definitely there are cream of the crop here too, where a few (may be 100) per year who would call, true geniuses. There are some colleges in India which are extremely difficult to enter ( 300:1 chance of getting in ). And these 2000-3000 students used to be the cream that used to enter the US since the 70s. That is the crop that you see in CEO , COO positions across the country today. They rose through their brilliance,merit and hardwork. But in the 90s with the IT boom, it became very easy for some one to cook up resumes and enter companies in the US mainly because within US there are stringent requirements before some one is marked as technically competent. Many non collegiate, small time training institutes popped up in India that made you a so called Java , MFC expert in 3-6 months. I know of people who committed that they are experts in Oracle whereas they had no basic idea about relational database theory at all. Some of them actually opened the books for the first time in the plane they were flying in. For some, the plane ride, the book was both a first time opportunity. They never got time to study in the ruckus it is to get a passport and VISA in India once their job posting was finalized. Then after this phase, the so called cheaters entered the US IT system and found out the salary structures, the contractor process and started to open a whole blown out industry where they got contracts at underbid prices against a genuine US competition. They opened sweat shops in India to get things done with salaries as low as 100$ a month. ( given that an IT engineer in India works 30 days and more than 10 hours a day ), that is less than 30 cents per hour. This is still fine, since you might know that the clothing line you wear and the phones you buy all come from these so called sweat shops. It is an entire industry. But then started the next big big scam and that is the H1 fraud. It was at one point of time so easy to get an H1 that people with green cards here started opening a mom and pop kind of consulting firm. You might enter a random strip mall across the US and find an one door Indian consultancy with a single person in the office or at times, no one. Example, a couple has gotten the green card over a period of some years. Now both of them have the right to open an LLC. US is one of the easiest places in the world to start a company. Actually you can progmatically fill up a few documents and you are done. So, now the husband and the wife both opened a company in the name Xtech and Ytech. Now they advertise in India that if you were to pay them some amount they will create a H1 opening for you and bring you in the US given the condition that you will have to find a job here with a H1 transfer in the first few months. After that an additional 6 months of your salary or 12 months of half salary that you earn from this second company will have to be given to them. Students from reputed institutions mainly crack GRE/GMAT with stellar scores and they usually make it to Carnegie/Harvard/Princeton but the guys whom US definitely does not want eat away into the system using these back doors. For the VISA interview in India it is sometimes difficult to identify whethere a person poor in English is the next Sundar Pichai or a fraudster. A technical screening of the highest level needs to be in place. Now many such mushroomed companies are running in parallel with large companies from India too. The companies that came into the limelight during the Disney employee fiasco are just some of them names. A term abroad is considered a perk in India and many employees are only working in a hope of getting an US posting. Now for a single job opening for lets say a DBA expert, they randomly file 5+ H1s for the single role and who ever gets the lottery gets to come over here. There is no requriement matching other than the fact that the person will eventually come here and somehow by hook or crook and by the skin of their teeth run the order of the business and due to lack of manpower in the US the managers will make do with someone spending 24 hours in the office. Once these processes were set up, the next ,level of fraud started to happen. Once inside the system, these people started to convert the H4 wives to low order sub 40K a year salaries. How that works is, these housewives who hardly had any retail clothing experience, will come to office and leave in the evening but get their work done overnight by their husbands. Who would not want an additional 40K $ with a work experience for naught. Trust me, biggest of the biggest names in the industry is suffering from this plight. They are filled with vendors who have no ability at all to be a computer engineer( even the top 4 biggies in tech have loads of such vendors). Then eventually, these people take up management positions since they are not technically competent but are available to the management 24 hours a day and respond well to emails. Despite their ability to take critical calls in the core technology these people managers popped up every where. Next started the L1 visa abuse. The green card channel to US is easy with L1 with the EB1 category. You need to be in a management position for 1 year abroad for a US company. Trust me this is a difficult thing to if you are working for Microsoft or Google where to become a manager you will need to show exemplary expertise. These small headhunting companies with some 50 odd names to their rolls ( sometimes these are cooked up too ) will give you a so called management resume for a position in Dubai or Singapore or in some village in India and expedite your Green card process in the US. Then, there was this whole fraud business of the testing tools and testers in the industry. Thousands have milked millions in the process and I have seen people with test credentials in their resumes where they never wrote a line of code and they will just use a product like a non technical user and these fraud companies would milk random amounts sine no self respecting computer engineer will want to only test a product. Now, if you ask me as an Indian what have I done to stop this. Let me tell you, I have already signed numerous petitions proposed by other Indians who are suffering because of these H1/L1 visa fraudsters, who are bringing a bad name to our country and are not the true representative of merit. It is no longer a brain drain from India, it is the drain that you are getting. One big thing to notice is that 90% of the Indians who are invovled in these activities belong to a state in India called Andhra Pradesh. Not all the folks from there are doing this, and they do produce some brilliant engineers like Satya Nadella of Microsoft, but definitely there are others from their state who underreport tax, evade housing policies, rent in the name of 2 and keep 10 hidden roommates, they are everywhere manipulating the system crazy. I am sorry as an Indian and I would urge every one to share this as many times as possible.

  41. @IndianWhoSeestruth, thanks for the rant. If people are able to hold down a job with no technical skills, all that means is the job DOES NOT REQUIRE TECHNICAL SKILLS AND SO DOES NOT FALL UNDER H1B CATEGORY. He/she did not steal an Indian techie’s job since that techie’s so-called merit is not applicable to this NON TECHNICAL JOB!!

  42. I worked for a state agency, and we were getting a new system of proprietary software that was somewhere towards customized in certain areas. I did notice the Upper echelon was generally made in the USA, while the large percentage of the coders and analyst were from afar. To me they could have recruited from the local pool being it is a state capital and we have two of the best State run Universities with in an hour. I just saw it as a complete affront to the US worker, and Taxpayer.

  43. Jerry Falk

    American companies like Apple and Google want to keep wages down, ​and by hiring foreign worker​s they save on salaries and keep unemployment higher for American workers. Like they aren’t making a big profit already. And Apple and maybe Google have profits hidden over seas and have not paid taxes on them. These kind of businesses are holding this country down and Trump ought to make examples of them.​ Trump wants to make America great again and Google and Apple want to keep America poor while they make a fortune hiring alien workers.​