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Old 04-28-2009, 01:28 AM
bigboy007 bigboy007 is offline
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For me as i did similar analysis during CIR 2007 the text of the bill looks very much similar. They had the same issues on H1/L1 except now fraud prevention... Not sure where it goes... Any idea Pappu, PPL seem to be still interested in debating H1Vs L1 etc... For sure more offshoring...

Quote:
Originally Posted by add78 View Post
Pappu,

I went through the text of the new bill vis-a-vis current INA and compared the old and the proposed act. Here are the findings -

Section 101 - This spells disaster for all H1Bs in consulting companies (as FT or C2C) -

by striking clause (ii) of sub-paragraph (E) of the section 212(n)(1), and then adding the new clauses under (F), they are PROHIBITING placement of H1B employees on another employer's site, period. This will affect NOT ONLY pure staffing (desi or non-desi) companies who place their W-2 H1B employees at client site, BUT ALSO big consulting companies like IBM/ACCENTURE/DELOITTE et al. No placement/leasing/outsourcing/contracting for services or otherwise at another employer, period - UNLESS a waiver is obtained, which will mean every company will need to obtain a waiver in order to do so, EFFECTIVELY ENDING ANY CONSULTING BY H1B.

Section 102 - This spells disaster for all companies who's H1B+L1 > 50% total employees

by inserting two new clauses (H) and (I) in section 212(n)(1), it prohibits H1B only or H1B preferred advertisements and prevents any company that employees more than 50 employees to submit NEW H1B/L1 application IF the total number of H1B and L1 employees exceeds 50% of its total employees. It also requires ANY company employing even a single H1B employee to submit W-2s of IRS. This affects ALL Indian IT companies like TCS/WIPRO/INFOSYS/COGNIZANT et al.

remaining sections (103 onwards) are more about enforcement and investigations.

Section 201 - This spells disaster for companies that bring in workers on L visas

This also affects ALL Indian IT companies like TCS/WIPRO/INFOSYS/COGNIZANT et al. AS WELL AS some other companies that might bring in workers from their home country.

IN SUMMARY -

In the SHORT RUN, this hurts outsourcing industry, as they need more time, and H1B/L1 resources on site to transition the work offshore, but I agree that in the LONG RUN, it will GREATLY BENEFIT AND INCREASE OUTSOURCING.

That will indeed be a sad day. Grassley and Durbin are trying to cut the branch they are sitting on. This will have the exact opposite of their desired effect.

Hope this helps.
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** Please don't take this as a legal guidance or suggestion. I am only providing info that I am thinking right which might not be correct always **
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