Wednesday, June 27, 2007

More Heat for Indian Outsourcers

Senators Grassley and Durbin release more data showing that Tata, Infosys, and others are using U.S. work visas to their advantage

As a revamped immigration reform bill heads to the Senate floor this week, opponents of outsourcing are again turning up the heat on companies they say are exploiting U.S. visa programs to send jobs abroad and to hire cheaper, non-American tech workers. On June 26, Senators Dick Durbin (D-Ill.) and Chuck Grassley (R-Iowa) released information revealing that foreign outsourcing firms that use the high-skilled H1-B visa program extensively are also among the heaviest users of another category, known as L visas.

Durbin and Grassley say these companies are abusing the L visa program, which is intended to allow multinationals to transfer foreign managers and specialists within a company to U.S. offices. The Senators allege that outsourcing firms are not engaging in transferring at all, but instead are hiring foreign workers expressly to bring them to the U.S.—and to take the place of American workers. The newly released data show that of the top 20 L visa users in fiscal year 2006, 14 are offshore outsourcing firms, including Tata Consultancy Services, Satyam Computer Services (SAY), Wipro (WIT), Infosys Technologies (INFY), Patni Computer Systems (PTI), and Accenture (ACN).

"Clear" Evidence

"It's clear that foreign outsourcing firms are abusing the system and we can't let that continue," said Senator Durbin in a statement. Representatives of Tata, Wipro, Infosys, and other top outsourcing firms could not be reached immediately for comment.

Durbin and Grassley obtained the information on L visa users from the U.S. Bureau of Citizenship & Immigration Services after requesting it in a June 13 letter. The data show, for example, that Mumbai-based Tata Consultancy obtained 4,887 L visas in fiscal year 2006, the most of any firm, American or Indian. "I find it hard to believe that any one company has that many individuals…legitimately being transferred within a single year," said Durbin.
A spokesman for Tata denies any wrongdoing and says that the company is willing to cooperate with Durbin to clear up any misunderstanding. "We're complying with the law and with the regulations," says the spokesman. "We want to work with Congress to address any issues they may have."

The Senators' latest missive comes just over a month after they launched their own investigation into the Indian outsourcers' activities in the U.S. On May 14, Durbin and Grassley sent letters to nine of the outsourcing firms, requesting information about how they use H-1B visas . That program was originally set up so U.S. companies could hire foreign workers with rare skills, but in recent years the most active users of the program have become outsourcing firms, led by Infosys and Wipro. Durbin and Grassley have said that this is evidence the program is being used to outsource American jobs to India.

Furious Reaction

Critics say the L visa program could allow for even more abuse than the H1-B program, which allows high-skilled workers to come to the U.S. for up to six years. While H1-B visas are capped at 65,000 per year, there is no annual limit to the number of L visas, and while H1-B visa workers must receive the prevailing wage, there is no such requirement for L visas. The number of such visas issued has increased from 39,886 in 2001 to 53,144 in 2006.
To address the problem, Durbin and Grassley are proposing an amendment to the revised comprehensive immigration reform bill, expected to reach the Senate floor for debate next week. The amendment calls for a prohibition on using the H1-B and L visas while outsourcing jobs abroad, and it limits a company's total H1-B and L visa use to no more than 50% of its workforce. The amendment also calls for the Labor Dept. to set the prevailing wage for visa workers, instead of employers, requiring employers to demonstrate a failure to hire Americans before being awarded visas. Durbin and Grassley originally tried to include these provisions in another amendment proposed by Senators Maria Cantwell (D-Wash.) and Jon Kyl (R-Ariz.). But ultimately they decided on a separate proposal with what they consider to be more stringent protections for U.S. workers.

The reaction from India has been furious. The Indian outsourcing firms feel they are the victims of political scapegoating and say that what they are doing is helping their American clients to become more competitive. Kamal Nath, India's commerce and industry minister, has said that the two senators are interfering with free trade, since one of India's most important exports is the services of its tech companies

Debate Continues

The Indian firms have also raised questions about whether Durbin and Grassley have any place in the current discussion. They say that the flow of Indian workers into the U.S. is essentially a trade issue and therefore should be negotiated by the Bush Administration under the rubric of the World Trade Organization. In a letter to Durbin and Grassley on May 30, Nasscom, the organization that represents India's software and services companies, pointedly noted that trade between the two countries flows both ways and that India's tech industry buys products from Hewlett-Packard (HPQ), Microsoft (MSFT), Oracle (ORCL), and Dell (DELL)
American tech companies have largely supported the idea of more visas for temporary workers, for themselves and for Indian tech companies. But that may be changing. Microsoft and Oracle have begun to voice support for the effort to reform of the visa system to prevent abuse . Still, Compete America, a coalition of tech companies that includes Microsoft and Oracle, issued a statement June 20 in support of the Cantwell-Kyl bill.

The debate is sure to intensify in the days ahead. On June 26, the Senate took the first step toward reconsideration of the comprehensive immigration bill—taken off the floor for retooling June 7. The senators voted to move forward on bringing the legislation to the Senate floor. There, in the coming days, the battle over the fate of immigrants, high-skilled and not, will be decided.

Crackdown on Indian Outsourcing Firms

Two senators are probing how Indian outsourcing firms use U.S. work visas, with an eye on new restrictions.Concerns about foreign companies that benefit from a visa program designed to make the U.S. more competitive are taking center stage in Washington, with two senators demanding explanations from overseas users of the system. Senators Chuck Grassley (R-Iowa) and Richard Durbin (D-Ill.) on May 14 sent letters to nine foreign outsourcing companies requesting detailed information on how they use temporary work visas, known as H-1Bs, to bring foreign workers into the U.S.

Critics say outsourcing firms, including Infosys Technologies (INFY) and Wipro (WIT), are using the visas to replace U.S. employees with foreign workers, often cycling overseas staff through U.S. training programs before sending them back into jobs at home. The lawmakers are intent on probing whether those allegations are accurate. "Supporters claim the goal of the H-1B program is to help the American economy by allowing U.S. companies to hire needed foreign workers," Durbin said in a statement. "The reality is that too many H-1B visas are being used to facilitate the outsourcing of American jobs to other countries."

In outlining the investigation, Durbin and Grassley are making details of the visa program public for the first time, including the number of visas awarded to non-U.S. companies. The nine firms, led by Infosys and Wipro, use 19,512 of the H-1B visas, or 30% of the 65,000 visas allowed each year. This indicates that Indian outsourcing companies participate more actively than previously thought, garnering for themselves visas that could otherwise go to U.S. firms. "This is information that we never had before," says Ron Hira, a public policy professor at the Rochester Institute of Technology who has studied the issue closely.A Polarizing Issue
The revelations could play into the hands of opponents of the H-1B program as the political battle over immigration heats up. President George W. Bush and many other lawmakers want comprehensive immigration reform this year, reform that would address both low-skill workers, largely from Mexico and other parts of Latin America, and high-skill workers, many from India and China. Chances of a compromise over the highly contentious matter of low-skilled workers already look slim. The move by Durbin and Grassley may make resolution of issues on the high-skill front equally unlikely.

Until recently, the discussion over high-skill immigration has centered largely on how to bring in more foreign workers adept at such jobs as software development. Technology companies, from Microsoft (MSFT) and Intel (INTC) to Motorola (MOT) and Qualcomm (QCOM), have argued that the U.S. should offer more work visas for noncitizens to improve its competitiveness.
In March, Microsoft co-founder and chairman Bill Gates went to Washington to make the case to Congress. "Simply put: It makes no sense to tell well-trained, highly skilled individuals—many of whom are educated at our top colleges and universities—that the United States does not welcome or value them," he said. "For too many foreign students and professionals, however, our immigration policies send precisely this message."

Many Indian Applicants

Yet evidence on the H-1B visa program paints a contrasting picture. As BusinessWeek first reported in February, Indian outsourcing companies have become by far the most active applicants for H-1B visas. The data, just then released, showed that seven of the top 10 applicants for H-1Bs in fiscal 2006 were Indian outsourcers, led by Infosys and Wipro.
Officials at the U.S. Citizenship & Immigration Services would not disclose which firms actually received the visas, but they said there was no reason to believe that the number awarded differed greatly from the number applied for. They said the visas are awarded on a "first-come, first-served" basis and no preference was given to U.S. companies.

At the time, Wipro officials said they used the visas to enhance the competitiveness of clients, many of whom work in the U.S. Laxman Badiga, the company's chief information officer, said that of its 4,000 employees in the U.S., roughly 2,500 were on H-1B visas. Each year, 1,000 new temporary workers come to the U.S. to develop their skills in serving U.S. clients, while 1,000 rotate home. Wipro says the training allows the firm to more effectively help its clients. "Our goal is to make our customers more competitive," said Badiga in February. A Wipro spokesman did not provide an official to comment for this story.Taking a "Hard Look"
Just how much the program advances U.S. competitiveness will come under closer scrutiny now. Durbin and Grassley have taken a much harder-edged approach to high-skill immigration than their parties have in the past. The senators say they want to ensure temporary worker programs can't be used to take advantage of American workers. "Considering the high amount of fraud and abuse in the visa program, we need to take a good, hard look at the employers who are using H-1B visas and how they are using them," says Grassley.

The letters probe a number of areas, including whether workers brought into the U.S. on H-1B visas are paid less that comparable American workers, a disparity that could drive down overall wages. The senators ask whether the visas are being used to train people in jobs that will later be moved back to India or other countries. And they request data on American workers who may have been laid off as H-1B workers have been hired.

"We are concerned that the program is not being used as Congress intended," wrote Durbin and Grassley in a letter to Nandan Nilekani, the chief executive of Infosys. Infosys did not return phone calls seeking comment.

Law Limitations

Durbin and Grassley have introduced legislation that make a number of changes in the temporary worker programs. The most radical change would be a requirment that companies applying for the visas attempt to hire U.S. workers first. Currently, applicants need to pledge to pay the prevailing wage, but they don't need to make any effort to hire Americans. The legislation would also require companies to pay higher wages to temporary workers and tighten oversight of the visa programs.

But resolving differences over the program won't be easy. It's not as simple as making the H-1B program more restrictive. U.S. tech companies have struggled to bring in enough workers to fill jobs in specialized fields. Even if foreign outsourcers are stopped from using the visas, there will continue to be shortages. This year, the 65,000 annual cap for H-1Bs was filled in less than two days.

Nor is there an easy distinction between U.S. and non-U.S. firms. While Durbin and Grassley's investigation is focused on Indian outsourcing firms, U.S. companies may very well be using the visas for much the same thing. Among the most active applicants for H-1B visas are Accenture (ACN) and Cognizant Technology Solutions (CTSH). Both are officially headquartered in the U.S., but they have extensive outsourcing operations in India.

Top 20 Users of L Visas in US

L visas allow employees to enter the United States temporarily for work. Here is a look at the top 20 companies that used these visas in the federal government's fiscal year 2006.Company name links to more info Visas granted

1 TATA CONSULTANCY SERVICES LIMITED 4887
2 COGNIZANT TECH SOLUTIONS 3520
3 IBM CORP. 1237
4 SATYAM COMPUTER SERVICES 950
5 WIPRO LTD 839
6 HCL AMERICA INC 511
7 DELOITTE & TOUCHE LLP/ DELOITTE CONSULTING LLP 512
8 PATNI COMPUTER SYSTEMS INC 440
9 INTEL CORP. 394
10 KANBAY INC. 329
11 HONEYWELL INTERNATIONAL 320
12 HEWLETT-PACKARD 316
13 INFOSYS TECHNOLOGIES 294
14 ACCENTURE LLP 291
15 CARITOR INC 231
16 SCHLUMBERGER TECHNOLOGY CORP 214
17 ORACLE 176
18 SYNTEL LTD 171
19 PRICEWATERHOUSECOOPERS 168
20 MICROSOFT CORP. 168

Tuesday, June 05, 2007

Swell waves attack again

Swell waves created panic in several parts of Alappuzha and Kollam districts on Monday as strong waves caused widespread damage to houses along the coastal area. The Arattupuzha-Valiyazheekkal Beach Road was damaged due to the attack by strong waves, and traffic had to be stopped on this route.

The swell wave attack was intense also in areas like Thanni, Eravipuram and Azheekkal. In Ervaipuram, six houses were destroyed totally and more than 20 houses suffered partial damages. Sea erosion was intense also in Paravur and Kakkathoppe and Kaleekkal near Chavara.

Tharayikkadavu in Arattupuzha, Amaballpuzha and Punnapra also suffered sea erosion. In these areas, scores of coconut trees on the beach were uprooted due to strong waves.

Global terror groups off Kerala coastline

Central intelligence agencies have warned the Kerala Government and the State intelligence unit about the reported smuggling of narcotic substances like hashish and ganja through the State with the help of Maoists in Andhra Pradesh and the LTTE.

Recently, an abandoned sack was found in a railway station in Alappuzha district that had led to a police investigation, and according to sources, the police were not able to crack the case. After newspaper reports and inputs from the State intelligence, the Central intelligence agencies had conducted a detailed inquiry into the same and had come to some startling conclusions.

According to the warning from Central intelligence agencies, banned drugs are being cultivated in the forests of Andhra Pradesh with the support of Maoists operating actively there. Once the plants are ripe the drugs are extracted and are transported to Kerala, which presently serves as the hub for the transfer of these drugs to international destinations. The help of the LTTE, which has a sizeable wing operating in the seas, is sought for the international transfer of these drugs.

As per Top intelligence sources , "The cadre of LTTE, which has specific interests along the Kerala coast line, are the major transporters and conduit in the transfer of these drugs. This is seen as a source purely for the sake of generating funds."

Sources also said that once these contraband drugs reached foreign shores their value would multiply and sometimes these fetched a hundred-fold more than what it fetched within India .
The Central intelligence agencies have already informed the State intelligence machinery about the need to act fast and efficiently to counter this threat from an international organisation ganging up with other groups with terror leanings within the country.

Intelligence personnel are also worried about the presence of LTTE on the shores of Kerala. The recent capturing of some Tamil Nadu-based fishermen and a Kerala boat driver by the LTTE has already become a cause for worry for the intelligence agencies.

The agencies are of the opinion that organisations like the LTTE, when they get a foothold, will try to convert that route for conducting further operations within the country.

Kerala with its booming economy and the presence of several players in the emerging market is turning into a destination for the terror groups which could harm the socio-political scenario of the State, sources worry.

A senior police officer, however, said, "There is not much to worry about this disclosure from intelligence agencies. It is their duty to report but the State police has already taken some important measures regarding the same, the contents of which cannot be disclosed to the media."

There were also unconfirmed reports that LTTE activities are going on in certain camps run by the migrant labours from Tamil Nadu. Intelligence sources revealed that most of the antecedents of those staying in such camps had not been properly ascertained.

Monday, June 04, 2007

Guruvayoor Temple Tantri speaks out

There is no negation of the Temple Entry Proclamation of 1936 in the performance of the Punyaham ritual after the entry of Ravi Krishna, son of Union Minister for Overseas Indian Affairs Vayalar Ravi, temple Thantri Chennas Raman Namboothiripad told this website's newspaper.

“As the Thantri of the temple, I am only bound to act upon the existing laws and I am performing the rituals as per the tradition and custom at the temple and I am ready to face prosecution for performing a ritual as per the existing tradition and custom of the temple. It is not the Thantri who escorted Ravi Krishna to the temple.

The Devaswom officals who received Ravi Krishna should have sought the clarification as a Punyaham had been performed earlier after his entry to the temple in 2000.”, the Thantri said.The Punyaham was performed not for the Choroonu ritual or the entry of Vayalar Ravi’s grandchild who is a Hindu maternally, the Thantri clarified.

The Punyaham was performed because of entry of Ravi Krishna, who is a Christian maternally.Ravi Krishna should have produced some relevant documents to prove that he is a Hindu prior to the entry in to the temple since he faced the purification ritual 7 years ago, Thantri said.“When Ravi Krishna’s entry was brought to my notice I can only direct for a purification ritual and nothing else”, Thantri said.

The Devaswom Minister who showers abusing words on everyone, should spare me.The words used by the Devaswom Minister to abuse me are painful and as the Thantri of Sree Guruvayurappan, I cannot give a reply to the minister in same language, Chennas Raman Namboothiripad said.“Thantri cannot legislate new laws for the temple and if Sudhkaran has the guts to initiate the law enabling all the non-Hindus to enter the temples in the state, let him do it.

If a law is legislated, then like every citizen, the Thantri too is bound to obey the law and it can be followed at the temple. Till then spare the Thantri of Guruvayur temple”, Chennas Raman Namboothiripad said.

Church leaders begin to feel eviction heat

With the Special Task Force, which was constituted by Chief Minister VS Achuthanandan for retrieving Government lands grabbed by encroachers, not sparing even the ruling front coalition partners, a section of the Christian church is feeling the heat.

Special Task Force chief K Suresh Kumar met the Chief Minister to have some final discussions on the methods to be adopted to raze down the Church buildings constructed in grabbed Government land, sources said.

According to sources, the action against the church has something to do with the issue of the self-financing professional colleges.

Highly placed sources in the Government told The Pioneer that a powerful bishop based in Idukki district has been camping at Thiruvananthapuram for the past couple of days to prevent Government action. It is learnt that this priest had told the officers and some senior LDF leaders that there were schools constructed in the Revenue land and as schools were reopening on Monday it would create problems for the children.

Sources in the Government told The Pioneer that neither the Chief Minister nor the senior officers attached with the Special Task Force had given an audience to the bishop. A section of the CPI (M) leadership is, however, batting for the bishop.

A senior official with the State Government while speaking to The Pioneer said, "The bishop and his entourage are using all their means for an audience with the Chief Minister, but he has in clear terms informed the church leaders that he will not be available for any meeting on this issue."

The section of the Kerala Congress, which is part of the LDF, is also trying to put in some pressure on Achuthanandan for a meeting with the bishop but, according to information available, this has not yielded any result.

The Christian congregation, which has several educational institutions and hospitals, has constructed 57 churches in Government land and there are either educational institutions or hospitals attached with these churches to give them a colour of social service. The special task force and its team of officers are in the final stages of calculating the exact area of the Revenue land grabbed by this congregation.

The special task force has also given signals to the Chief Minister on the legality of the land of an engineering college in central Travancore managed and run by a church. A senior police officer, who has worked in central Travancore area, told The Pioneer, "The land-grab by this congregation is not a new phenomenon. We have given clear reports to the Government on the same but there has been no action. This Chief Minister is serious on his promises."

It is also learnt that in the ongoing discussions between the Government and the self-financing managements regarding admission in professional courses, the land-grabbing issue has come to the fore. There are indications that certain church groups had even considered the proposal from the Government side in engineering and medical admissions provided there are no further action into land-grabbing.

This is a clear pointer that there is something to hide on the part of these land-grabbers and whether the Government will bite the bait or go ahead with the demolition drive is to be seen in the days to come.

Friday, June 01, 2007

Court Oks grounding of overweight airhostesses

The Delhi High Court on Thursday upheld State-run carrier Indian's decision to ground airhostesses for being overweight, saying the airline had the right to take such steps to remain competitive. "Keeping in view this kind of job performance, air hostesses are asked to battle their bulge, control their girth and keep at desired level the affluence of their body weight as per the norms," Justice Rekha Sharma said, while dismissing an appeal against the airlines' decision.

The court also held that physical fitness was an integral part for the cabin crew. "In this era of cut-throat competition, no airlines can afford to remain lax in any department whatsoever, be it the personality of its crew members, their physical fitness in all respects or the air worthiness of the aircraft or in relation to other facilities such as catering," the court said. The court passed the order on a petition filed by some airhostesses who were grounded for being overweight.

The plea challenged Indian Airlines' circular of May 4, 2006 withdrawing permissible overweight limit of 3 kg over and above the upper limit as laid down for cabin crew. The airlines had in June 1996 decided to ground its cabin crew for being overweight by more than 10 kgs.

This was later brought down to 7 kgs in 1998 and to 3 kgs in October 2000. The court also rejected the airhostesses' plea they cannot be grounded once they have obtained medical certificate declaring them fit to fly.