Another Wave of H-1Bs on the Way

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Growing Green-Card Queues

Critics point to a number of potential problems with raising the H-1B cap. For one, making more H-1B visas available without doing the same for green cards will only add to the number of visa holders currently waiting for permanent residence. The queue for green cards is swelling into the hundreds of thousands because only 9,800 green cards are allotted to each country each year. Tens of thousands of H-1B visa holders from countries including India and China are left waiting for years in a legal limbo that limits their ability to change employers or get a promotion.

Still, some immigrant advocates are willing to back legislation calling only for an H-1B visa increase. Aman Kapoor, president of the skilled immigrant advocate group Immigration Voice, says, "We're behind any bill that can move and can be a vehicle for our issues."

Outsourcing Worries

Another problem with raising the visa cap without reform, say critics, is that the H-1B program remains open to abuse. RIT professor Hira, for example, says employers often pay visa workers below-market wages, dragging down wages for U.S. tech workers. Department of Labor investigations have also uncovered the underpayment of some visa workers (BusinessWeek, 1/31/08). None of the bills proposing to raise the cap would strengthen rules to ensure visa workers are paid fair market wages.

In addition, there is concern that the companies benefiting from more H-1B visas (BusinessWeek, 3/6/08) would be not only U.S. tech firms like Microsoft but, increasingly, Indian outsourcing firms like Infosys (INFY) and Wipro (WIT). Data just released by the federal government show that Indian outsourcers accounted for nearly 80% of the visa petitions approved in 2007 for the top 10 participants in the program. U.S. tech worker advocates say these companies allow low-level tech workers from other countries to train in the U.S. and help create a pool of cheaper labor when they return home, facilitating outsourcing.

"Raising the cap would be a boon for Indian bodyshops," says Kim Berry, president of the Programmers Guild. "These firms produce nothing of value while they undercut U.S. wages," he adds. "They are corrupting the supply and demand of the tech labor market and dissuading future generations from entering the field. An apparent quick fix will cause long-term consequences."

The H-1B debate will continue in the coming months, with Senators Durbin and Grassley pressing U.S. companies and Indian outsourcing firms to answer to the program's critics. As the heat turns up on both sides—and as the economy possibly sinks into a recession—it's unlikely to be a quiet battle.

Herbst is a reporter for BusinessWeek.com in New York.