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Blog Posted in avatar   Maria Elisa Anacay's Blog

New bill obliterates offshore outsourcing

By Maria Elisa Anacay
Posted May 7, 2013 in Business
The proposed Border Security, Economic Opportunity, and Immigration Act of 2013 could either hamper or improve your business, depending on which side of the fence you're standing.
The bill intends to impose tougher immigration rules that could quite heavily affect all undocumented immigrants in the country. It has the potential to send the immigrants packing or on their way to citizenships.
Despite this clause, one of the more controversial passages of the bill would have to do with its clamping down on offshore outsourcing. If enacted, it could disrupt the equilibrium of offshore outsourcing businesses by requiring these firms to pay higher wages for specialized positions and to advertise said jobs at higher premiums to American workers before hiring H-1B foreigners.
The Work Visa for College Educated Professionals or H-1B visa refers to the status of foreigners in the U.S. that work in specialty positions. The bill proposes to raise the H-1B cap from approving 65,000 visas to 110,000 visas. The figure could also rise to 180,000 depending on a formula about the visa demand and unemployment rates of professionals and managers.
This focus on H-1B visas is especially threatening to offshore outsourcing firms. The bill would straddle them with hefty fees that could reach $10,000 should it be determined that 15% of their workforces are foreigners holding temporary visas. As Computer World puts it, “more than half of the U.S.-based workforces” employed by outsourcing firms in the country are holding H-1B and L-1 visas. With the 15% cap, majority of offshore outsourcing firms in the U.S. would have to pay the fines.
Outsourcing firms are waiting for the bill to debut to the public before making any stance in regards with the outsourcing-related clauses.
An outline of the bill is available here.

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