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At a GM dealer that closed in Easton, Md., all that remains is the sign Jim Watson/AFP/Getty Images

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Taking Aim at Outsourcers on U.S. Soil

A new bill in Washington, introduced by Senators Dick Durbin (D-Ill.) and Chuck Grassley (R-Iowa), could jeopardize the business models of such outsourcing firms as Wipro (WIT) and Infosys (INFY). The legislation aims at tightening the rules for companies in the U.S. that hire skilled workers from abroad on temporary work visas, known as H-1Bs and L-1s. The most controversial provision would bar companies with more than 50 employees in the U.S. from landing any additional work visas if more than half their stateside workforce is made up of H-1B or L-1 visa holders. The bill is likely to be considered alongside immigration reform later this year, and it's unclear whether it has the support to become law. Som Mittal, president of the Nasscom trade group that represents India's outsourcers, says the proposal is misguided. If enacted, it would stop virtually all the major Indian outsourcers from bringing new employees into the U. S. "Both U.S. and Indian industry would suffer," he says. Azim Premji, chairman of Wipro, says India is likely to take action if the bill passes in its current form. "There is no way our government can take it lightly," he says. "[The tech services industry] is a vital piece of the economy."

See "Work Visa Bill Threatens Indian Outsourcers"

—Edited by Harry Maurer & Cristina Linblad

Hiring Hanky-Panky?

Federal sleuths wonder whether U.S. tech titans are engaging in a practice of "Don't hire, don't tell." According to The Washington Post on June 3, the Justice Dept. has launched a probe into whether a wide range of high-tech companies violated antitrust laws by agreeing to avoid actively recruiting each other's employees. The inquiry focuses on Google (GOOG), Yahoo (YHOO), Apple (AAPL), Genentech (DNA), and many other tech outfits. The probe is said to be in the early stages, with no certainty that a lawsuit will be filed.

—Edited by Harry Maurer & Cristina Linblad

Going After Microsoft

Critics call it a rearguard action and meddling by a power-mad bureaucracy, but fans argue it will level the playing field. The Wall Street Journal on May 30 said the European Commission, a longtime Microsoft (MSFT) antagonist, may force the software giant to preinstall Web browsers from rival makers, such as Firefox, Chrome, or Opera, onto Windows computers sold in Europe. The goal would be to boost alternatives to Internet Explorer, thus trimming Microsoft's power to dictate standards for Web sites. Both the company and the commission declined to comment.

—Edited by Harry Maurer & Cristina Linblad

Merkel's Blast

German Chancellor Angela Merkel reinforced her street cred as a fiscal conservative when she hosed the U.S. Federal Reserve, the Bank of England, and various other international institutions for flooding the world with liquidity. On June 2, Merkel complained to an audience in Berlin that the "all-powerful" Fed had pressured a reluctant European Central Bank to make bond purchases to encourage more bank lending and pleaded for "a return to a policy of reason." Otherwise, she warned, "in 10 years we'll be back in exactly the same place." Merkel seems still to be sore that the financial crisis forced Germany to bail out many of its banks, widening a budget deficit she had spent much of her term trying to eliminate.

—Edited by Harry Maurer & Cristina Linblad

Dreaming Big in Turkey

A "mad genius." That's what BusinessWeek Turkey dubbed designer and architect Hakan Gursu in its May 31 cover story. Gursu's Ankara-based firm Designnobis has racked up scores of awards in the past couple of years. Among its creations are the Fire Knight vehicle, which sprays soil instead of water to extinguish forest fires, and Volitan, a "sailboat" powered by solar energy. Now Gursu is dreaming on a much bigger scale. He has drafted a blueprint for a mini city in Ankara, Designopolis, that will house research and development laboratories and light manufacturing, along with residential units and such amenities as health clubs and restaurants. Gursu is already signing up investors. The price tag? A cool $1 billion-plus. If it gets off the ground, Designopolis could help Turkey overcome its reputation as a laggard in innovation.

The CEO Conundrum

The great debate over how much chief executives matter rages on. One landmark study from 1972, for instance, found that decisions by CEOs explained just 14.5% of the variance in corporate profits among a sample of 167 companies. More recent research seems to show that leadership matters less in old-line industries, where the pace of change is slow, than in, say, the tech sector. Such bosses as Steve Jobs of Apple are the furthest thing from titular figureheads: They have the power to make or break a company. Also, studies show that having the right man or woman in the corner suite may be more important in bad times than in good. (The Atlantic)

—Edited by Harry Maurer & Cristina Linblad

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