Amid growing rhetoric against outsourcing of jobs from the United States by President-elect Donald Trump, two IT firms — Infosys and Cognizant — have said that there is a shortage of talent to man operations in the country as only a few graduates are coming out of colleges with the intended skill sets.
During his election rallies, Trump had targeted IBM, which has a significant presence in India, for outsourcing jobs. Domestic IT firms TCS and HCL Technologies had also come under his attack.
This has raised fears among Indian IT firms of possible reduction in H1B visa numbers going forward, which will impact their ability to send Indian IT engineers to foreign locations for serving a client.
“There is a talent shortage; that is something that has to be balanced. It is not that the H1B visa employees are coming in to displace jobs. If you look at many other high-tech companies, they all hire H1B visa workers because there is an inherent shortage,” Infosys chief executive officer Vishal Sikka was quoted as saying by the Business Standard.
US-headquartered Cognizant also echoed similar sentiment. “The reality is that there are not enough graduates coming out of the universities. We are working with many universities all over the US, both graduates and undergraduates. We struggle,” Cognizant President Rajeev Mehta said.
When you filter candidates by college vs non-college, and age, you get young candidates that are considered to be “freshers” in India.
A fresher is somebody that has no experience and basic theoretical experience.
You put that kid alongside somebody like me with over 30 years experience and we will laugh as they try everything under the sun to fix the problem while we older people will use something like a six step troubleshooting process that we were taught in the navy electronics training we took and Pareto analysis like we were taught by Juran to isolate the real problem.
Tell you what I will do Infosys and Cognizant.
You subcontract the work out to American Made Software and I will hire and train experienced people and we will deliver.
Can you say the same for your own processes?
And we will do it in every location you work at in America, including government contracts.
We will NOT treat people like cheap, compliant labor with no rights.
We will treat them as Americans and we will hire Veterans and Displaced Americans first and we will deliver your projects successfully.
Oh yes, Infosys, here is your Christmas song that I send to you on an annual basis for at least six years now.
Hear all of those that have senior level skills yelling at you Ken Behrendt?
They are out there.
Behrendt said the H-1B program doesn’t help what he sees as a shortage of senior, skilled resources who are paid top dollar and have considerable experience. Most H-1B workers have limited experience.
One way to help create a more experienced workforce is by facilitating growth in the IT services industry, said Behrendt.
In Puerto Rico, Carlos Melendez, the co-founder of Wovenware, believes H-1B visas restrictions will help companies in the U.S. and Puerto Rico as well.
Wovenware employs 50 workers, an increase of 60% this year, and expects to add 10 to 25 employees next year, said Melendez. He said Puerto Rico-based services firms can provide engineering talent at much lower cost than the mainland, while following the same U.S. regulations, currency and time zones.
H-1B restrictions “will only boost” Wovenware’s growth, said Melendez. But for now, it’s wait-and-see time.
“Government changes could certainly increase our sales opportunities, but we are not counting those opportunities into our business model right now,” said Melendez.
Somebody in China with deep pockets bought out mooney aircraft not too far from me.
So far it has been good for the employees from what I have heard.
But, why is China doing this?
And what are we going to do if they buy all of our companies using the money we paid them to take our jobs in the first place and then they evict us from America?
And tomorrow President Elect Donald Trump and VP Elect Mike Pence will be in Indiana, and more specifically, at the Carrier air conditioning plant to announce that 1,000 jobs will stay in the U.S. after Carrier had said in February that their plant was closing and moving to Mexico. I’m sure it’s the tax incentives that Trump is proposing that helped this deal and the threat of hitting Carrier with a 35% tariff for making the air conditioners in Mexico and thinking that they could just ship them back to the US tax free.
There’s also been a lot of noise lately about visas for tech workers being affected. The Guardianreported last week that “Under the H-1B visa scheme, 65,000 workers and another 20,000 graduate student workers are admitted to the US each year. The tech industry, which has lobbied to expand the program, may now have to fight a rear-guard action to protect it, immigration attorneys and lobbyists said.”
More than likely Trump won’t be an advocate of the H-1B visa scheme, though it’s not yet known exactly where Trump is on this issue, for sure. But until it’s ironed out, Apple’s Tim Cook keeps opening “R&D centers” around the world at an accelerated rate. I’m sure that Cook will simply be hiring foreign engineers and students from abroad and keeping them in these new facilities. Apple has announced more R&D centers this year than any previous year and that’s not coincidental. Cook is forward thinking.
Cook called Trump to congratulate him on his victory and President Elect Trump made it clear that there’s going to be unprecedented tax relief and incentives to persuade Apple to make products in the U.S. It’s not like Apple will stop making iOS and Mac devices in China or India or anywhere else. But if Apple wants to sell products in the U.S., they should be made in the U.S. With the right tax breaks, Apple won’t be losing money making products in the U.S.
Tomorrow is December 1 and before we know it Donald Trump will be sworn in as the 45th President and he’s going to hit the ground running on several fronts. One of the top three things he’s aiming for is tax relief and incentives for businesses to make things in the US again and bring back pride to tradesmen who have been hurt under the one-sided NAFTA trade deal signed in by Bill Clinton.
There are so many positives for Silicon Valley if they stopped whining and got down to business like the Chinese are. Why not dream again. Why not create the world’s first smart super highway for smart cars from San Francisco to Boston? Why not invest in smart car factories and next-gen aircraft? Why not promote and accelerate the iPad program for education?
The stupid side of Silicon Valley reared its ugly head when Trump won the election and we reported on that. Now it’s time for the brainiacs in Silicon Valley to step up to the plate and meet with President Elect Trump to ignite a new wave of investment in bold projects and to accelerate diversity in the workplace instead of fearing the boogeyman. The Chinese are getting down to business in the U.S. and it’s about time for U.S. companies to do the same.
While it takes much imagination to find that 8 U.S.C. § 1324a(h) gives the president unlimited authority to allow aliens to work in the country, the plain text of § 1182(a)(5) explicitly gives the executive the power to exclude aliens who “adversely affect the wages and working conditions of workers in the United States similarly employed.”
Imagine the next Disney situation when an employer tells hundreds of Americans they are being replaced by foreign workers and have to train those replacements to collect unemployment. Those workers then complain to the Department of Labor. Instead of encountering an unsympathetic President Obama, Bush, or Clinton, a patriot like President Donald Trump could step in and deport the foreign replacements. Even the New York Times editorial page would have a hard time criticizing President Trump for such an action.
The next company that tries to pull a Disney could find itself left high-and-dry with its foreign workers getting the boot from the country.
Sanders’ “Outsourcing Prevention Act,” would bar companies that outsource jobs offshore from receiving future federal contracts, tax breaks and grants of loans from the U.S. government. It would also impose a tax “equal to the amount of savings achieved by outsourcing jobs or 35 percent of its profits, whichever is higher.”