In April, about 8,000 petitioners sought H-1B visas from the U.S. Citizenship and Immigration Services. But a year earlier, that number stood at more than twice that — about 16,500. And in 2009, requests for H-1B visas topped 45,000, almost six times this year’s figures.
Clearly, the once-coveted paperwork that enables skilled non-citizens to work legally in the U.S. is not the prize it once was. What’s happened?
According to a study of Indian and Chinese tech entrepreneurs who once worked in the States, opportunities abound in their homelands and seem more favorable to them than do working conditions in the U.S.
“The best and the brightest used to flock here from all over the world because there were no opportunities for them elsewhere,” says Vivek Wadhwa, visiting scholar at University of California, Berkeley’s School of Information, a co-author of the study. “But IT grads can now get better jobs at home in India or China. They may make a little less money, but they have a higher quality of life.”
As a result, he says, not only can’t U.S. tech firms fill jobs, but America is losing talent and companies.
“Salaries are shooting through the roof in Silicon Valley,” he says, “which some say is a good thing. But that makes building a company here so much more expensive that it’s now more economical for U.S. tech firms to outsource or even build their companies in Delhi or Shanghai.”
Wadhwa says he is “absolutely sounding a warning” that something needs to be done—and quickly.
Wadhwa’s co-author—AnnaLee Saxenian, dean of University of California, Berkeley’s School of Information—agrees that more immigrants are returning home than in the past. “But this is not about visas. Only 9% of the survey respondents ranked visa issues as important reasons for returning home,” she says, “whereas a majority ranked the availability of economic opportunities, access to local markets, and family ties as important reasons.”
Unlike her co-author, Saxenian believes the U.S. and emerging economies like China and India benefit from what she calls “brain circulation.”
“These returnees remain well-connected to the U.S.,” she explains. “They travel back often, share information about markets and technology, collaborate, and co-invest with U.S. businesses. They also create new markets and complementary technologies.”
But what Saxenian calls “brain circulation,” Wadhwa calls “brain hemorrhage.”
“When I came to America in 1980, it took me 18 months to get a green card,” he recalls. “Now, because of flawed immigration policies and the visa backlog, it could take my students 20-30 years to get a green card after they graduate. I have no doubt that if we fix the backlog, far fewer will return home.”
His “quick fix” recommendation is to retain the highly educated, legal immigrants already in the U.S. by accelerating the process of giving them the green cards they require to live and work here permanently.
Saxenian supports this measure, but doesn’t believe it will halt the return of entrepreneurs seeking to return to their fast-growing home economies. “They know that there is great wealth to be made in China and India today.”
Paul Hyman was editor-in-chief of several hi-tech publications at CMP Media, including Electronic Buyers’ News.
Top US CS grads aren't given the "time of day" from US employers. Employment rates out of institutions such as Cornell and MIT are only 30-40%. US employers can't even employ the 'best and brightest' US citizens that emerge from our institutions. Why do they/should they need access to foreigners?
Silicon Valley salaries are *not* "through the roof" (in fact, most Silicon Valley tech salaries are not even high enough to afford basic house ownership at 3X income).
Giving foreign guest workers green cards would further entrench the damage that the H1-B program has done to US tech workers, almost all of whom have suffered severely with low wages, poor working conditions, and loss of investment returns.
America needs to innovate from within..with heavy unemployment the government should cancel the following visas: H1-b, L1, OPT, EB1, EB2 and EB3 which allow foreigners to take American jobs. That's one way we can promote economic growth.
All I have to say is: the politicians that dreamed up NAFTA, CAFTA, and the like including outsourcing must have had rocks for brains to have ever thought those things would be good for our country. How in the world (no pun intended) could fair trade (what a joke) with all those other countries be good for us!!! It was the beginning of unemployment when those things were voted in. Our companies took off for the cheap labor, and our people lost their jobs. Personally, I would rather pay more for things and have Americans employed than to have cheap products from China that don't hold up for long anyway!!!!
Why is our government STILL bringing in 1.5 MILLION foreign workers a year?http://www.americanworker.org/ The vast majority of foreigners here on guestworker visas are ordinary white collar workers with common skill sets. Why, why, why????
H-1Bs are anything but the 'best and brightest.' Oh, a few of them are smart, but most are ordinary workers with common skill sets. The truth is, America is pretty well cleaned out. Let'em go elsewhere. The only thing that will save America is to get Americans back to work. Imagine that!
Recently, my IT job has been offshored and has been taken by a 24 year old Indian with '15 years of Java EE and .NET experience' on his resume. I can't believe this is actually happening in our country which once was the centre of the IT world.
I think these whiners who rant about foreigners robbing American jobs need to ask themselves: Why do you deserve higher pay ? You are smarter ? You work harder ? Or just because you are a pampered American ? (Sorry, the high cost of living is not the excuse; you can always emmigrate to the third world)
Americans used to enjoy higher pay and better life because they can make things the third-world cannot. Not anymore ! Time to wake up and face reality ! Low-end manufacturing jobs are long gone; however, high-end manufacturing jobs such as Boeing are still abound. For those whiners, my advice is: Make something others (read: China and India) cannot easily copy.
H-1Bs need to be deported en masse, especially those frauds from India.
The sky is falling! The sky is falling!
Does anyone consider this guy even relevant any longer?
Curious, isn't it, that the 'best and brightest' come from the world's poorest countries? As well, countries that have established engineering reputations such as the Germans and Japanese aren't clamoring for H1B visas.
H1B visas are NOT immigration visas. They are for temp workers, there is a specific end date and there is no guarantee you will get a green card so the wait is immaterial.
It's wonder Americans built the IT industry without india's help, hmmm? Not only should we let them leave, we should be helping them out the door.
Companies ruined or almost ruined by Indian labor
Adaptec - Indian CEO Subramanian Sundaresh fired.
AIG (signed outsourcing deal in 2007 in Europe with Accenture Indian frauds, collapsed in 2009)
AirBus (Qantas plane plunged 650 feet injuring passengers when its computer system written by India disengaged the auto-pilot).
Apple - R&D CLOSED in India in 2006.
Australia's National Australia Bank (Outsourced jobs to India in 2007, nationwide ATM and account failure in late 2010).
Bell Labs (Arun Netravalli took over, closed, turned into a shopping mall)
Boeing Dreamliner ES software (written by HCL, banned by FAA)
Bristol-Myers-Squibb (Trade Secrets and documents stolen in U.S. by Indian national guest worker)
Caymas - Startup run by Indian CEO, French director of dev, Chinese tech lead. Closed after 5 years of sucking VC out of America.
Circuit City - Outsourced all IT to Indian-run IBM and went bankrupt shortly thereafter.
ComAir crew system run by 100% Indian IT workers caused the 12/25/05 U.S. airport shutdown when they used a short int instead of a long int
Deloitte - 2010 - this Indian-packed consulting company is being sued under RICO fraud charges by Marin Country, California for a failed solution.
Dell - call center (closed in India)
Delta call centers (closed in India)
Fannie Mae - Hired large numbers of Indians, had to be bailed out. Indian logic bomb creator found guilty.
GM - Was booming in 2006, signed $300 million outsourcing deal with Wipro that same year, went bankrupt 3 years later
HSBC ATMs (software taken over by Indians, failed in 2006)
Intel Whitefield processor project (cancelled, Indian staff canned)
Lehman (Spectramind software bought by Wipro, ruined, trashed by Indian programmers)
Medicare - Defrauded by Indian national doctor Arun Sharma & wife in the U.S.
Microsoft - Employs over 35,000 H-1Bs. Stock used to be $100. Today it's lucky to be over $25. Not to mention that Vista thing.
MIT Media Lab Asia (canceled)
PeopleSoft (Taken over by Indians in 2000, collapsed).
Polycom - Former senior executive Sunil Bhalla charged with insider trading.
Qantas - See AirBus above
Quark (Alukah Kamar CEO, fired, lost 60% of its customers to Adobe because Indian-written QuarkExpress 6 was a failure)
Rolls Royce (Sent aircraft engine work to India in 2006, engines delayed for Boeing 787, and failed on at least 2 Quantas planes in 2010, cost Rolls $500m).
SAP - Same as Deloitte above in 2010.
Skype (Madhu Yarlagadda fired)
State of Indiana $867 million FAILED IBM project, IBM being sued
State of Texas failed IBM project.
Sun Micro (Taken over by Indian and Chinese workers in 2001, collapsed, had to be sold off to Oracle).
UK's NHS outsourced numerous jobs including health records to India in mid-2000 resulting in $26 billion over budget.
United - call center (closed in India)
Virgin Atlantic (software written in India caused cloud IT failure)
World Bank (Indian fraudsters BANNED for 3 years because they stole data).
I could post the whole list here but I don't want to crash any servers.
Some simple facts about highly-skilled workers from the 3rd world. This is not opinion. These are facts.
- The H-1B guest worker visa program was started in 1991 with an annual cap of 65,000 visas.
- The L-1 visa program was started in the 1970s and was designed for intracompany transfers only. It has since been abused to bring in foreign nationals for services companies and then place them at their clients - which is illegal.
- From 1978 to 1998 - including the 90's boom - the demographic in the IT industry was 98% white American males. The U.S. economy was booming in 1998.
- In late 1998, India (and the rest of the world) sat up and took notice of the huge amount of wealth America's tech workers were generating. India decided they wanted to take over what Americans had created and get the $ for themselves. But how? Answer: Public Relations of course! So India's IT lobby, NASSCOM, hired D.C. PR/lobbying firm Hill & Knowlton to plant fake "worker shortage" stories in the U.S. media in 1998. While most Americans were busy enjoying the fruits of their labors, India was plotting how to invade and take over America. This barrage of news alleging a worker shortage story was the vehicle by which India, Inc. convinced America to permit the next step:
- In late 1998 and early 2000, the H-1B visa caps were raised from 65,000 a year to 115,000 per year and 195,00 per year, respectively. Then-president Bill Clinton - not George Bush - signed the increases. Tech workers from India didn't begin arriving in the U.S. in large numbers until late 1998. How could they have created the 90's tech boom when they weren't even here? The tech boom was created by Americans. Now that Americans have been driven out by the imported workers, the Silicon Valley and U.S. economies are a disaster.
- As a result of the 1998 & 2000 increases, 1.1 million foreign guest workers came into the U.S. from October 1998 to October 2003. According to the U.S. Dept. of Labor, 90% of those H-1B visas went to people from India. These people promptly took over America's tech jobs and drove Americans out of them.
- A unknown number more came in during the same time period on the L-1 intracompany transfer visa, which has been heavily abused by Indian outsourcing companies such as Wipro, InfoSys, and Tata. The number of L-1s who came in from 1998-2003 is at least 1 million, maybe 2 million.
- There is no yearly cap on L-1 visas.
- The H-1B visa cap reverted back to 65,000 per year in Oct. 2003. Despite this, over a million foreign guest workers continue to come into the U.S. every single year - even during periods of record unemployment, such as today.
- The U.S. economy went from booming to collapse the same year of the 2nd H-1B increase - proof that the foreign guest workers did not perform as promised.
- In fact, the U.S. economy has been in decline since 2000 or 2001. The government tried to offset the decline by making huge amounts of cheap credit available to make up for lost jobs and lower wages caused by the flood of cheap labor from the developing world. The credit ran out in 2008 and the real economy now is the result.
- There has been no real economic growth in the U.S. since the 2000-2001 collapse.
- Since the millions of guest workers arrived in 1998 and 2000, 14-16 million white collar American jobs have been destroyed. Approximately 1-2 million of those have been offshored - the rest have been destroyed. Promises by guest workers to help the U.S. economy in 1998 have never materialized. The opposite has happened.
- Despite common myths, there is no legal requirement in the H-1B laws which requires an employer to look for and hire an American worker instead of a foreign worker.
- Protections for American workers are provided in Federal law under Title 8, Section 1182, which defines who is an inadmissible alien, but those laws are being ignored and are not enforced.
- Most H-1Bs that enter the U.S. from developing countries such as India and China are not skilled as claimed - they are being trained by Americans when they get here - which makes both the applicant and hiring company guilty of fraud, which is a felony.
- American companies are using the H-1B and other work visa programs as a way to displace and bypass American workers in favor of cheaper foreign labor.
- Most foreign imported workers who come to the U.S. to work on work visas make less than their American counterparts. Companies love imported workers because companies think they increase profits by cutting costs. Cost-cutting is a sign of a company in trouble. In reality, long-term cheaper foreign workers harm American profits because long-term increased profits rely on innovation, not lower costs - and countries like India and China have terrible track records in innovation.
- Due to historical and ideological factors, most of the foreign workers we are brining to the U.S. are deliberately keeping skilled Americans out of the workforce by denying them jobs. The foreign workers claim Americans are too stupid, but Americans created the IT industry. The real reason Americans are being kept out of the workforce is because of racism, hypernationalism, communists in corporations who hate capitalism and hate America, and because of historical resentments by the guest workers themselves. Britain invaded and colonized India 150 years ago. Indians think the evil white man stole all their wealth. Hence Indians think they are entitled to break the law and deny jobs to Americans. It's payback time. Britain colonized China by taking control of Hong Kong from 1898 to 1997. The Opium Wars enslaved China and weakened it. Hence most Chinese resent hate white people. The Chinese are also deeply jealous that the U.S. has far surpassed them in just 250 years and China has been around for 6000 years.
- Both China and India resent America because both countries are communist or socialist and hence the U.S. would not trade with them for 50 years - from the end of World War 2 until globalization began in 1997. Most Chinese and Indians believe that they were kept out of the world economy by America and hence they want to do the same to us. Mexicans hate Americans because NAFTA disrupted the local Mexican economy when it was flooded with American goods by greedy American executives who wanted to find new consumers to sell to.
- Foreign guest workers are conducting a systematic campaign of ethnic cleansing - cleansing Americans from jobs in their own country. The reasons why are covered above.
- China is all about "saving face". America's success makes China look bad. The Chinese are jealous of us. Many imported guest workers from China will deny jobs to brilliant Americans simply because they are Americans - even to the point of making companies fail by staffing them with incompetent foreign guest workers who can't do the jobs. Can't hire Americans you know - that increases the prestige of Americans and decreases the prestige of Chinese. What do they care what they do to Americans? As long as the can fake it long enough to grift out VC-funded companies and send the money home, it's ok - after all, the evil white man oppressed China and hence China is entitled to America's money - even without performing as advertised. The cleanout of American VC-funded tech companies by fraudulent foreign workers is one of the prime causes of both the "credit crisis" (money going overseas when foreign workers send their paychecks home), and high unemployment (foreign workers not doing the jobs, and cusing companies to fail, thus reducing the number of jobs in the economy). It's not just how many people are working that matters, it's who is working. Workers from developing countries not only want our money, they want to see our economy fail - after all, that lowers U.S. prestige in the world and makes the other countries who can't compete look relatively better. If you can't beat your competition, just attack them instead, take their money, but collapse all their companies while you are at it.
- The U.S. currently exports $45 billion a year in wages to India alone and over $70 bllion a year to Mexico. Wonder where the capital in our banks is going? It's not being used to create jobs in America or being spent into the American economy - it's being shipped overseas by guest workers here.
- India wants to be known as the IT capital of the world - despite the fact that India is incapable of creating it own operating system. Name one software application that comes from India. Name one Indian software company anyone has heard of - not services companies like Wipro, Tata, etc - Indian companies that actually produce software they sell - none exist.
- More software comes from Scandanavia than from India.
- The average Indian IQ is 81. The average American IQ is 98. The average Japanese IQ is 107. The average German IQ is 100. Why aren't we importing a million workers a year from Japan and Germany? Why only from 3rd world countries? Answer: people from 3rd world countries are not the best and the brightest - they are the opposite - we are importing them for International Socialism - so that they can enjoy the fruits of the labor of productive countries like the U.S.
- Name one new industry or invention to come out of India or China in 250 years. Auto industry - America. TV & radio industries - America. Aerospace industries - America. Light bulbs, integrated circuits, computers, the internet, software - all of it comes from America, invented and created by Americans. Modern manufacturing, assembly line process - American. Now name one new industry or invention to come from India or China in 250 years - there are none. America doesn't need these workers.
Foreign-born founders and their contributions to America
- There has been much talk recently of the contributions of foreign-born founders to America. While it is true that there are some few rare exceptions, the reality is the vast majority of immigrants are here to take from us and send money home - as well as to acquire skills from Americans so they can be more like us.
- A few immigrants have made contributions to America - many of them from Europe. Many of them over 40 years ago. Einstein and von Braun come to mind. A few others more recently from non-European countries - Vinhod Kosla at Sun, the creator of Hotmail, or Amit Singh. But again, they are the rare exceptions, not the rule. The fact is, a decade of importing millions of foreign workers is not making the U.S. economy grow - it was growing in the 90's - before they got here, not now.
- For every one outstanding immigrant who does contribute, we are bringing in at least 10,000 destructive ones who are only here for our money and jobs. - immigrants who take and destroy as our economy is now proving.
- Let's talk companies and who founded them. As a rationale for why immigrants need to come help America, the immigrants themselves have been telling lies about who founded what companies. Let's set the record straight.
- Intel - Intel was not founded by immigrants. It was founded by 2 Americans - Robert Noyce and Gordon Moore (of Moore's Law fame).
- Yahoo! - Yahoo! was founded by one American - David Filo - and one immigrant - Jerry Yang. But Yang came to the U.S. at age 6 from Taiwan - a developed country. He was raised here and went to school here. He's more American than immigrant.
- Google - Google was founded by one American - Larry Page - and one immigrant - Sergei Brin. But Brin came from Russia, not India or China - and he came here at age 3 and grew up here and was educated here. He's more American than immigrant.
- Microsoft - Founded by two Americans - Bill Gates and Paul Allen.
- Apple - Founded by two Americans - Steve Jobs and Steve Wozniak. Apple is booming today. Why? Apple CLOSED its R&D in India in 2006 and hires mostly Americans for all of its software development. 0% of Apple's software development is done offshore.
- Sun - Founded by 2 Americans, 1 German, and 1 Indian. Sun's CEO for the 1st 25 years was Scott McNeally - an American. Sun's operating system was architected by another American co-founder - Bill Joy. In 2001 Sun was taken over by legions of foreign guest workers from India and China - and Sun is now losing $150 million a quarter and is being sold off to Oracle to avoid the embarrassment of closing its doors with foreign guest workers running it.
Now let's go down the list of companies damaged or destroyed by foreign imported labor since 1998:
PeopleSoft - Taken over by imported Indian workers in 2000 - had to be sold off to Oracle to avoid embarrassment of closing.
Sun Micro - Dying. See above.
Bell Labs - Taken over by Indian-national Arun Netravalli in 2003. Bell Labs where the transistor, UNIX, and the C programming language were invented is now being turned into a shopping mall.
Quark - Taken over by Indian national Alukah Kamar - who laid off all the American developers and sent the work to India. The products became so bad that 60% of Quark's customer base defected to Adobe InDesign, never to return. Kamar was later fired but not before permanent harm was done to Quark.
Computer Associates' former CEO from India is now serving 12 years in federal prison for fraud.
MIT Media Lab Asia - Closed in 2006 due to faked invoices in India.
Intel Whitefield processor project - this project in India was cancelled when Intel discovered that many of the "engineers" had faked their resumes.
ComAir - ComAir's 100% Indian IT staff caused the nationwide 2005 Christmas day airport shutdown when they used a short int instead of a long int in the crew scheduling software they were working on. So much for the best and the brightest from overseas contributing to the American economy.
Boeing Dreamliner - Boeing's new 787 Dreamliner airplane has been delayed 5 times - in part because of failed software written by India's HCL Technologies - whose CEO once said "American grads are unemployable".
Lehman - This failed Wall St. institution had purchased Wipro's Spectramind software (which they in turn had bought from someone else and messed up) just before it went bankrupt. It also had hired large numbers of India, Inc. workers just before it went under.
Dell - Outsourced a lot of work to India over the past decade. Profits are now down 54%. Michael Dell once said "Stability is more important than growth".
United/Delta - Both companies brought their call centers back to the U.S. from India when they discovered that foreign call centers were harming their business.
HSBC - ATM software was taken over by India, Inc., ATMs began failing in 2006.
AIG - Signed outsourcing deal in 2007 in Europe with Accenture, collapsed in 2009.
Vodaphone - UK's top cell phone vendor has gone into major decline - in part because its CEO from India didn't do the job and walked out with over $41 million in compensation for doing nothing.
World Bank - Indian, Inc. fraudsters including Wipro were BANNED for 3 years because they stole data.
The verdict is in: Whatever else immigrants and foreign-born founders are doing to America, on balance, they are causing net harm to the U.S. economy - harm that is the cause of our current economic problems. No amount of hype, news stories, studies, or commentaries will change the above facts about the effects of foreign guest workers on the U.S. economy.
A huge army of conmen from India numbering into the several millions have spent a decade cleaning out America's economy. America's moronic MBA managers and boomers who know nothing about technology have been conned by this elaborate PR-driven charade and have been duped into throwing Americans who created IT out and replacing them with incompetent conmen. The end result is what you see now: a destroyed American economy and a vast transferrence of America's wealth to India. People like Vivek Fraudwha are India's cheerleaders and keep shouting from the rooftops that this is good for us, but based on the state of the economy, it clearly isn't.
Now you know the exact chronology of what has happened to America's economy and who is responsible. All the fluff you hear on the evening news is just cover or what has really happened: we've been invaded and plundered by foreign interests that's all.
Capital crisis? Nah - remittances. Guest workers send $45 billion year from the U.S. home to India. $70 billion to Mexico. And that's just those 2 countries. The total is in the hundreds of millions. Keep siphoning that money out year after year and it leaves American banks and lands in Indian banks. And we wonder where all the credit has gone - credit is capital sitting in banks. Except that after a decade of this nonsense, it's no longer sitting in U.S. banks where it would have been lent to businesses to create jobs. Duh.
Housing collapse? Subprime crisis? Nah - mortgage-paying Americans no longer having the jobs or incomes to pay their mortgages - because their jobs were taken away from them and given to cheaper imported workers who have no interest in living here, only in working here so they can send our their money home. There were no subprime loans in America's booming economy of 1998. Sure Barney Frank helped contribute, but that's not the prime cause. No jobs, no mortgages. At least not ones Americans can afford. The banks too are complicit in this: they give out too many loans and run the housing values way up in boom times due to excessive demand, then they flood the labor market and collapse the economy by laying everyone off. Homeowners who have been making payments for years lose all that cash, plus the interest, plus the house too - the banks end up with the money and the property. Pretty nice deal - if you're a banker.
Record federal debt? Nah - suplus elimination by the Fed banksters who control us. In 1998 Bill Clinton sequaled "We've cured the business cycle". Greenspan chimed in: "We should use the Federal surplus to pay down the national debt". Uh oh. Red warning alarms going off in every Fed building in the country (and in a lot of castles in Europe and in The City in England too). Surpluses put bankers out of business. A boom like the 90s lets everyone pay cash. No need to borrow much. Bankers don't like that. Hence, since they control our money supply through the Fed (it's illegal for the U.S. government to issue its own money due to The Federal Reserve Act of 1913), something had to be done. But what? First they tried Open Source to try to kill the value of proprietary software. That didn't work - smart companies continued to protect their inventions. The banksters finally figured out the best way to wreck an economy is to flood it with unproductive workers and replace the super-productive ones who are creating the boom. When salaries are high, tax revenues go up too. When salaries are low, tax revenues go down. Hence, to stop a surplus, all one has to do is get rid of the highly-paid workers, and replace the with lower-paid ones. If you can actually destroy the jobs in the processs, you put the brakes on the economy even more. Hence another reason for the flood of IQ81 people from India replacing America's most brilliant American workers whose IQs are in the 140 range.
That did the trick - that and pilling on even more debt through never-ending unecessary wars which cost billions.
So now you know the history of how the American economy was really wrecked - don't let the blow-dried morons on the news fool you.
Other than the fact that Vivek Wadhwa is doing some fine lobbying work for NASSCOM, he fails to take into account 2 major cultural factors for the retreat of Chinese & Indian 'guest workers' (remember the H1B is a temporary visa):
1/ Chinese are "going home" because... surprise! China is where their families are. East Asians have this burning need to get married and make a family, 'going home' is a perk if they're in corporate America.
2/ It's the same deal with our Indian friends. First they 'flee' their country and cause a 'brain drain' in India. Then, they come here for monetary reasons (not for love of the craft), therefore, when we devalue our currency they 'go back home' thereby causing a 'US brain drain'...
3/ "Sounding a warning".. I'll have to remember that new euphemism for 'pushing fear, uncertainty & doubt'.
Mr. Wadhwa needs to stop measuring imaginary externals. "Brains" are no ones' property but whose cranium they reside therein.
Finally, it would be wise of ACM to vet just *whose* information they present on their site, so as not to get entangled with the agendas of known lobbyists.