Impact on Economy
If, let's assume, all these frauds related to H1B and IT consulting companies are stopped from tomorrow, how would it impact the US Economy?
NOTE: I'm not against H1B visa. However, I desperately want the FRAUDULENT activities related to H1B to stop. Why? Cause I'm a VICTIM. Nobody knows it better than ME.
US economy will greatly benefit from increased jobs in the STEM occupations, specially in the IT field. If the existing laws for H1B are properly implemented, any company investing in research and innovation will be able to hire all the talented workers they need. These innovative companies actually create jobs for America. The existing system of H1B lottery stops these innovative companies to get the actual talents they need. Only increasing the number of H1B visa quotas from 85,000 will just open the backdoor for cheaper, close-to-inexperience and fraud H1B candidates.
Positive Impacts on US Economy:
Negative Impacts on Indian Economy:
Indian economy will suffer a huge loss not just in terms of reduced remittance, but also the local job market will be greatly affected.
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Positive Impacts on US Economy:
- There are shortage of highly skilled technology workers. By the simple law of economics, higher demand will increase the price. Technology jobs will become lucrative and more American young people will study technology related subject. This will reduce the skill-gap in a few years.
- All the projects that are awarded to Indian IT Implementation Partners (ie. TCS, Infosys etc.) will be undertaken by the American companies. They'll employ American people. They'll hire talented international students graduating from US universities.
- American universities are THE destinations for the most talented people around the world. However, as these talented people are losing their battle to H1B workers with fake experiences, America becomes a less lucrative option. Enforcing H1B rules properly will reduce the influx of less talented. This will make US companies more competitive.
Negative Impacts on Indian Economy:
Indian economy will suffer a huge loss not just in terms of reduced remittance, but also the local job market will be greatly affected.
- There will be less people coming to USA with H1B visa. That will result in a huge decrease in the amount of US Dollars sent to India by these H1B workers.
- Fraud IT consulting companies will shut down their offshore branches in India. People working in those offshore branches will lose their jobs.
- People providing job supports to less-experienced and FAKE H1B workers will go out of job. Any truly talented person who completed his graduate degree from a US university barely needs a job support.
- Part of the contracted works by these implementation partners are usually exported to the off-shore teams. In 99% cases, the end clients don't even know that the project tasks are actually undertaken by a team of Indian IT workers. Eventually, all those off-shore centers will shut down.
- Computer Science will no longer be a lucrative subject to study in India. Many educational institutes will have to shut their doors for the lack of enough students.
- Fewer Indian students will be willing to come to USA for a graduate degree. Only the ones with funding and/or scholarship will come. As a result, financial institutions in India will face a lower demand for Education Loan for coming to USA.
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