H1B is Cheaper
The greatest portion of the COST for any IT implementation goes for Human Resources. Also, IT jobs can be outsourced to cheaper offshore companies without even losing the quality of work.
In a very rare case, H1B dependent ‘Desi’ consulting companies will hire an American. Why? Because an American employee can switch his job anytime he wants. However, finding a new job for an H1B employee is so difficult that H1B workers decide to stick to his sponsoring employer even if the salary is 40% lower than the market rate. Also, there is an issue of Green Card. If the H1B worker does not stay loyal to his employer, they would never file Green Card for him. So, usually a H1B worker sticks to his sponsoring employee until the employee files his Green Card.
Implementation partners like to have more H1B workers in their payroll. These companies bid for projects with a lot cheaper quotation. They are often the lowest bidders who win the project. American companies usually cannot compete with them as these American companies pay the market rate for their American IT consultants. Honestly, H1B workers are lot cheaper.
Is it an ethical question for an American company to hire an H1B dependent implementation partner as a contractor? May be. Is it illegal though? No, not at all. We cannot solely blame the H1B system as American companies never have problems to purchase services from the H1B dependent implementation partners. Somebody on the top of the company ladder decided to reduce his company’s IT COST and turned a blind eye to these discrepancies.
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Implementation partners like to have more H1B workers in their payroll. These companies bid for projects with a lot cheaper quotation. They are often the lowest bidders who win the project. American companies usually cannot compete with them as these American companies pay the market rate for their American IT consultants. Honestly, H1B workers are lot cheaper.
Is it an ethical question for an American company to hire an H1B dependent implementation partner as a contractor? May be. Is it illegal though? No, not at all. We cannot solely blame the H1B system as American companies never have problems to purchase services from the H1B dependent implementation partners. Somebody on the top of the company ladder decided to reduce his company’s IT COST and turned a blind eye to these discrepancies.
[email protected]