I recently ran across this article about a bill that is currently working its way through the legislature. Could this mean then end to IT outsourcing as we know it? What does it mean for all the companies that bring on non technology H-1B visa holders? Once again I don't believe that our legislatures are looking at the big picture here.
What are your thoughts?
http://tinyurl.com/2bmz3q8
Wrote a post for my LinkedIn group Inside Consulting (http://linkd.in/909hzh) on this exact article. From 8/5:
ReplyDeleteMy wise-ass response is that it will not impact consulting at all while the impacts to contracting will be significant. (We'll cover the difference in an upcoming discussion thread). My real response is a little less cut and dried.
My thoughts in two parts: Part One: Business/Economics - I believe that this is simply a next logical step in the evolution of a global economy. With the decades old growth of multinational corporations peddling goods across national borders, why would anyone think that people/services would not be the next logical step. We feel very strongly that the market should determine the cost of the things/services we purchase (even if they are produced in Asia/not within our boarders) and that the cost should be as low as possible. However, when a business shops around globally for resources this is wrong? I understand the distinction between the direct one-to-one impact of job loss rather than the indirect manufacturing loss of jobs but the impact is the same. I'm not a fan of my neighbors or family members losing their jobs for any reason but I do find the shock to the situation to be odd.
Part Two: Politics - Here's where I am greatly bothered. This is an important topic and one that needs to be handled carefully. However, instead of smart people creating a solution, we have politicians making speeches with, at best, a very small minority in mind in (their constituency) or at worst, financial supporters in mind. If the government needs to insert itself into the market, fine. However, please understand the big picture and not just which side of the isle you are on.
Now I'll actually answer the question: I think the impact will only be significant if the additional fees cut deeply enough into margin. If it become too cost prohibitive to sponsor H1-B visas then, yes, I think that there could be a consulting boom in the US. However, with offshore firms so deeply entrenched, I would guess that this obstacle will be overcome through a reshaping of service/partnership agreements.
Dan, I agree with your comments. You are correct that legislature is only looking at things from one side. Could this also be an opportunity for our country to look at where it's investing? Perhaps the U.S. should focus on investing in education of its own resources so that we don't need to reach offshore for better talent or has the American society just set the bar too high as to what experts in a field demand for compensation in order sustain a standard of living?
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