New U.S. Visa Fees Would Hit Indian Firms

http://online.wsj.com/article/SB1000...13011107101860
..html?mod=googlenews_wsj

NEW DELHI—Legislation that passed the U.S. Senate late Thursday would
significantly increase fees for skilled-worker visas, a move that would
deal a financial blow to Indian technology-outsourcing companies that
send thousands of employees to the U.S. each year.

The measure, which was attached to a $600 million border-security
spending bill that senators passed just before leaving for their August
recess, would require all companies with U.S. staff that have more than
half their U.S.-based employees on H1-B or L-1 visas to pay thousands of
dollars in special new fees for each worker.

Som Mittal, president of Indian technology industry trade group Nasscom,
said Indian companies could face $200 million to $250 million in
increased human-resources costs annually if the bill becomes law. The
measure now awaits action in the U.S. House, and Indian companies plan
to mount a fierce lobbying campaign against it.

All of the biggest Indian tech companies would be affected by the fee
increases, Mr. Mittal said, including giants such as Wipro Ltd., Infosys
Technologies Ltd. and Tata Consultancy Services Ltd.

Big U.S. tech companies such as Microsoft Corp. and Intel Corp. would
almost certainly avoid the fees because their foreign workers make up
less than 50% of their overall U.S. work force. An Intel spokesman said
Friday, "We are aware of the legislation, we did not take a position on
it and are not impacted by it."

Mr. Mittal said, "The way they've done this, the majority of the impact
is on the Indian companies."

He said Nasscom has asked India's external affairs and commerce
ministries to look into whether the measure would violate World Trade
Organization rules. "It seems like indirect protectionism," he said.

Infosys, India's second-largest outsourcing company by sales, said in a
statement, "It is unfortunate that this tax is being levied on a
discriminatory basis when the need is to open markets to make companies
more competitive in the global marketplace."

Representatives of Wipro and Tata Consultancy didn't respond to requests
for comment. A spokesman for India's external affairs ministry didn't
immediately respond to a request for comment.

The visa issue threatens to become a wedge between India and the U.S. as
the countries prepare for President Barack Obama's planned visit to New
Delhi in November.

Experience WSJ professionalEditors' Deep Dive: Reinventing Outsourcing
FINANCIAL EXPRESS (INDIA) Outsourcing Gets More Specialized
..Economist Intelligence Unit - Executive Briefing
The Growth of Legal Outsourcing
..Mint
BPO Segment Leads Growth in IT Contracts. Access thousands of business
sources not available on the free web. Learn More.Indian software
services and outsourcing companies generate about 60% of their combined
$50 billion in annual revenue from the U.S. The Indian industry has
enjoyed explosive growth over the past decade, fueled by an army of
skilled, low-cost, English-speaking workers in Bangalore and other
Indian cities.

More
India Real Time: Sen. Schumer's Word Choice
Complete Coverage: Outsourcing
..But Indian companies also have tens of thousands of employees in the
U.S. and other countries, where they work at the sites of clients such
as big banks and insurance companies. Indian companies account for about
12% of new H1-B visas issued each year, Nasscom said. The Indian trade
group didn't have a figure for the total number of Indian tech workers
in the U.S., but said on average roughly 70% to 80% of Indian companies'
U.S. labor forces are on temporary work visas.

As the U.S. backlash over outsourcing has intensified in recent years,
some critics have zeroed in on the skilled-worker visa programs, arguing
that they give foreign companies a beachhead to facilitate deals with
U.S. companies that ultimately transfer American jobs abroad. Sen.
Charles Schumer, the New York Democrat who co-sponsored the legislation
raising visa fees with Claire McCaskill (D.-Missouri), has been a critic
of outsourcing.

Sen. Schumer praised the new visa rules, which enable the bill to be
funded without dipping into stimulus money. He said that forcing Indian
companies to hire more American workers "is a good thing," and that the
new fees would apply only to a "handful" of foreign companies.

Indian tech companies have long feared that the U.S. would impose curbs
on outsourcing. Last year, Wipro Chairman Azim Premji lobbied White
House officials on the issue during a visit to Washington.

According to a summary of the Senate bill, the new charges would
increase visa fees paid by affected companies by roughly $2,000 per visa
application. But Mr. Mittal says the increase would actually be about
$4,500 more per worker for new visas and $4,000 more for renewals.
Currently, most visa applicants also face additional fees; in most
cases, the H1-B visa fees amount to about $2,320.

"The question is how much of the costs they will be able to pass on to
clients," said Avinash Vashistha, chief executive of Bangalore-based
outsourcing industry consultancy Tholons.

Mr. Vashistha said the new visa costs would accelerate Indian companies'
plans to hire more American-born workers in the U.S. Already, big firms
such as Wipro and Tata have been beefing up U.S. hiring over the past
two years.

The Indian industry faces a fight as it tries to beat back the visa
legislation. The increase in fees is supposedly how Congress will pay
for the $600 million in spending on increased border personnel, unmanned
aerial drones, and other initiatives to help stop illegal immigration to
the U.S.

—Keith Johnson in Washington contributed to this article.


--
Obama's black racist USAG appointee.

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intimidation charges against the Black Panthers, "You are about to be
ruled by the black man, cracker!"

Eric Holder, prejudiced black United States Attorney General settles the
hate crime debate, "Whites Not Protected by Hate Crime Laws."

Nancy Pelosi, Democrat criminal, accessory before and after the fact, to
former House Ways and Means Committee Chairman Charles B. Rangel of New
York's million dollar tax evasion. On December 3, 2010, Congress voted
to censure Rangel for 11 ethics violations. House Speaker Nancy Pelosi
fought removal of Charles B. Rangel from the House Ways and Means
Committee.

Felony President. 18 USC, Sec. 600. Promise of employment or other
benefit for political activity

Obama violated the law by trying to buy Joe Sestak off with a political
appointment in exchange for not pursuing an election bid to replace
Arlen Specter. Obama violated the law by trying to buy former Colorado
House Speaker Andrew Romanoff off last fall to see if he'd be interested
in an administration job -- instead of running against Sen. Michael
Bennet.

On Sat, 18 Dec 2010 17:11:39 +0000 (UTC), "Leroy N. Soetoro"
wrote:

http://online.wsj.com/article/SB1000...13011107101860
.html?mod=googlenews_wsj

NEW DELHI—Legislation that passed the U.S. Senate late Thursday would
significantly increase fees for skilled-worker visas, a move that would
deal a financial blow to Indian technology-outsourcing companies that
send thousands of employees to the U.S. each year.

The measure, which was attached to a $600 million border-security
spending bill that senators passed just before leaving for their August
recess, would require all companies with U.S. staff that have more than
half their U.S.-based employees on H1-B or L-1 visas to pay thousands of
dollars in special new fees for each worker.

Som Mittal, president of Indian technology industry trade group Nasscom,
said Indian companies could face $200 million to $250 million in
increased human-resources costs annually if the bill becomes law. The
measure now awaits action in the U.S. House, and Indian companies plan
to mount a fierce lobbying campaign against it.

All of the biggest Indian tech companies would be affected by the fee
increases, Mr. Mittal said, including giants such as Wipro Ltd., Infosys
Technologies Ltd. and Tata Consultancy Services Ltd.

Big U.S. tech companies such as Microsoft Corp. and Intel Corp. would
almost certainly avoid the fees because their foreign workers make up
less than 50% of their overall U.S. work force. An Intel spokesman said
Friday, "We are aware of the legislation, we did not take a position on
it and are not impacted by it."

Mr. Mittal said, "The way they've done this, the majority of the impact
is on the Indian companies."

He said Nasscom has asked India's external affairs and commerce
ministries to look into whether the measure would violate World Trade
Organization rules. "It seems like indirect protectionism," he said.

Infosys, India's second-largest outsourcing company by sales, said in a
statement, "It is unfortunate that this tax is being levied on a
discriminatory basis when the need is to open markets to make companies
more competitive in the global marketplace."

Representatives of Wipro and Tata Consultancy didn't respond to requests
for comment. A spokesman for India's external affairs ministry didn't
immediately respond to a request for comment.

The visa issue threatens to become a wedge between India and the U.S. as
the countries prepare for President Barack Obama's planned visit to New
Delhi in November.

Experience WSJ professionalEditors' Deep Dive: Reinventing Outsourcing
FINANCIAL EXPRESS (INDIA) Outsourcing Gets More Specialized
.Economist Intelligence Unit - Executive Briefing
The Growth of Legal Outsourcing
.Mint
BPO Segment Leads Growth in IT Contracts. Access thousands of business
sources not available on the free web. Learn More.Indian software
services and outsourcing companies generate about 60% of their combined
$50 billion in annual revenue from the U.S. The Indian industry has
enjoyed explosive growth over the past decade, fueled by an army of
skilled, low-cost, English-speaking workers in Bangalore and other
Indian cities.

More
India Real Time: Sen. Schumer's Word Choice
Complete Coverage: Outsourcing
.But Indian companies also have tens of thousands of employees in the
U.S. and other countries, where they work at the sites of clients such
as big banks and insurance companies. Indian companies account for about
12% of new H1-B visas issued each year, Nasscom said. The Indian trade
group didn't have a figure for the total number of Indian tech workers
in the U.S., but said on average roughly 70% to 80% of Indian companies'
U.S. labor forces are on temporary work visas.

As the U.S. backlash over outsourcing has intensified in recent years,
some critics have zeroed in on the skilled-worker visa programs, arguing
that they give foreign companies a beachhead to facilitate deals with
U.S. companies that ultimately transfer American jobs abroad. Sen.
Charles Schumer, the New York Democrat who co-sponsored the legislation
raising visa fees with Claire McCaskill (D.-Missouri), has been a critic
of outsourcing.

Sen. Schumer praised the new visa rules, which enable the bill to be
funded without dipping into stimulus money. He said that forcing Indian
companies to hire more American workers "is a good thing," and that the
new fees would apply only to a "handful" of foreign companies.

Indian tech companies have long feared that the U.S. would impose curbs
on outsourcing. Last year, Wipro Chairman Azim Premji lobbied White
House officials on the issue during a visit to Washington.

According to a summary of the Senate bill, the new charges would
increase visa fees paid by affected companies by roughly $2,000 per visa
application. But Mr. Mittal says the increase would actually be about
$4,500 more per worker for new visas and $4,000 more for renewals.
Currently, most visa applicants also face additional fees; in most
cases, the H1-B visa fees amount to about $2,320.

"The question is how much of the costs they will be able to pass on to
clients," said Avinash Vashistha, chief executive of Bangalore-based
outsourcing industry consultancy Tholons.

Mr. Vashistha said the new visa costs would accelerate Indian companies'
plans to hire more American-born workers in the U.S. Already, big firms
such as Wipro and Tata have been beefing up U.S. hiring over the past
two years.

The Indian industry faces a fight as it tries to beat back the visa
legislation. The increase in fees is supposedly how Congress will pay
for the $600 million in spending on increased border personnel, unmanned
aerial drones, and other initiatives to help stop illegal immigration to
the U.S.

—Keith Johnson in Washington contributed to this article.
they should stop the visa take away from Americans plan anyway .We
have plenty of tech people and would have lots more if they knew they
could actually get a job . but with tax breaks for companies to hire
foreigners there is not much of a market for an American citizen to
work in the tech field . You can bet these companies get a big break
for every visa worker they hire .