Developereo
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For people talking about capitalism, the point is true. However, the nonsense about "highly skilled' Indians and 'Indian companies creating American jobs' is a load of bull. The numbers in a recent NASSCOM press release were dissected in another thread to show how the supposed American jobs created were crap.
Here's the basic scenario:
- American Client (AC) needs some work done. They solicit, and get, bids from American Vendor (AV) and Indian Vendor (IV). The IV typically underbids by a substantial amount and gets the contract, since the AC follows capitalism and goes for the lowest bidder.
- Now the IV has two choices: they can get the work done in India, or in the US. The first option is cheaper, but has additional complications. The onshore option is relatively more expensive but affords more flexibility. So how did IV manage to underbid AV when they are both doing the work onshore? It's because the IV will hire almost all H1-B imported workers from India. Those jobs are lost to American workers, but the IV will claim to have 'created' jobs in America, even though the workers are almost all imported from India.
Now people will say that there are labor laws regulating salaries and such, so IV can't really undercut AV by much. To those comments, we can only shake our head sardonically: people can be so naive!
Beating labor laws is the easiest trick in the book. What you pay someone, and what you show on the books, need not be the same. As long as the taxes add up, the government knows jack. The H1-B Indians won't complain because, in exchange for these sacrifices, they get an American visa and onshore American experience, both of which they can leverage to transition to a proper American company. At that point, no one will give damn about their fake degree and fake past experience: the only thing prospective American employers will care about is recent relevant onshore experience.
End result: American jobs lost, Indian workers imported to take those jobs, and all the while Indian companies claim they created jobs in America.
Here's the basic scenario:
- American Client (AC) needs some work done. They solicit, and get, bids from American Vendor (AV) and Indian Vendor (IV). The IV typically underbids by a substantial amount and gets the contract, since the AC follows capitalism and goes for the lowest bidder.
- Now the IV has two choices: they can get the work done in India, or in the US. The first option is cheaper, but has additional complications. The onshore option is relatively more expensive but affords more flexibility. So how did IV manage to underbid AV when they are both doing the work onshore? It's because the IV will hire almost all H1-B imported workers from India. Those jobs are lost to American workers, but the IV will claim to have 'created' jobs in America, even though the workers are almost all imported from India.
Now people will say that there are labor laws regulating salaries and such, so IV can't really undercut AV by much. To those comments, we can only shake our head sardonically: people can be so naive!
Beating labor laws is the easiest trick in the book. What you pay someone, and what you show on the books, need not be the same. As long as the taxes add up, the government knows jack. The H1-B Indians won't complain because, in exchange for these sacrifices, they get an American visa and onshore American experience, both of which they can leverage to transition to a proper American company. At that point, no one will give damn about their fake degree and fake past experience: the only thing prospective American employers will care about is recent relevant onshore experience.
End result: American jobs lost, Indian workers imported to take those jobs, and all the while Indian companies claim they created jobs in America.