Tuesday, January 19, 2010

This is my understanding on how the future looks like after this new memorandum on "employer-employee" relationship.

1. I see many H1B Employees getting affected. There will be many h1 transfers denial, denials in extensions. So either they will find a new real Full Time job, or get their H1 transferred to “big” consulting companies like K Force, TEK Systems, Infosys, Wipro, etc. Else failing this will force them going back to their home country. Many might change their status to H4 (if a spouse id working).

2. All major consulting companies will “have to” hire H1s like TEK System, K Force because since there will be no layer concept they wont be able to get consultants from some Body Shoppers.

3. Consultancy Companies aka Desi Companies, Body Shoppers, Job will close if they do not have large number of direct clients and most (90% if not 95%) of them don’t have . Even if they have small number of direct clients they will have to close down in future, because the economy is not very good and maintaining employees on bench is a expensive affair.

4. Many CGs process will stop, because of the reason mentioned in point 1 above.

5. Approx all categories of GC will have very less backlogs. We can even see a backlogs of 2-3 years if not 1-2 years in future.

6. Sharp decrease in H1 applying to GCs. Consider this how many true companies will sponsor their employees for GC knowing that most of them will leaver as soon as they get their Green Card.

7. Demand for EAD/GC/US Citizens will rise because consulting don’t have to do a H1 transfer i.e. no costs attached and no need to pay them on bench.

8. Some clients will face storage of consultants because many H1b will be going back to their home land because of H1 extension denied or consultants changing their job.

9. I see the concept of % salary going away and a relative low pay fixed income starting. With fewer options left for consultants, the companies will come in the driver’s seat. They will offer fixed salary in the range of 55 – 70K as suppose to 7—120K salaries.

10. Job market in some countries esp. India will witness many US return IT professionals.

11. A sight glitch in the real estate market since a little share is owned by many H1bs

I guess in the long run this will help all the parties involved.

My personal experience was very bitter. I was not treated as suppose to me when one comes to an alien country. My X-Desi company did not gave me Medical benefits (I got my own for 3 months). Yeah not getting paid on bench, I have complained to DOL regarding this.

Thanks for reading. Please post your comments.

1 comment:

Anonymous said...

Are you kidding or what? You think this world works so simple and straight forward and one decision from USCIS will make everything good?

You have one valid point!! Many H1b's might have to go back or the new students who finished their MS wont get H1b transfers to desi consultancies and might have to go back.


1) Less american people required for immigration. Hence less jobs for americans in immigration department.

2) All the H1b's who will have to go back have to sell their homes and cars adding to the already messy situation here in US

3) Those H1b's who are on valid status might fear something new coming up or getting layed off from their cosy client jobs but since no consultancies to back them up, they themselves will not invest money in houses and expensive cars

3) numerous para legal positions affected

4) Worst of all. After all this mess, the H1b positions which are open, if they are all sent to offshore instead of hiring people in US. It will be the best example of hitting yourself with the biggest baddest hammer you can find.

This is just a small list to begin with...there can be numerous such affects. Dream on!!