Stop outsourcing to india

[S_Kirk]

Argument Against Outsourcing U.S. Jobs to India, Including Concerns about Skill Level, Fabricated Credentials, and Strategic Knowledge Transfer

While outsourcing jobs to India has become a standard practice for many American companies seeking cost reductions, this strategy comes with significant drawbacks beyond just wage concerns. Issues with skill levels, verification of credentials, and strategic knowledge transfer raise red flags about the sustainability and quality of this outsourcing model. Here’s an in-depth argument against outsourcing to India, incorporating the unique challenges posed by unskilled labor, fabricated credentials, and the consequences of corporate acquisitions designed to transfer knowledge offshore.

1. Skill Gaps and Quality Concerns in the Indian Workforce

a. Lack of Comparable Skill Levels

•	Skill Deficiencies: Many workers in India, particularly those hired for outsourced roles, do not possess the specialized skills or expertise required to maintain the quality standards set by American companies. In fields such as IT and customer service, this skills gap often results in subpar work and increased error rates.
•	Increased Training Costs: Companies often invest heavily in training Indian workers to bring them up to standard, which can offset cost savings and delay productivity.

b. Fabricated or Questionable Credentials

•	Unverified Qualifications: It is not uncommon for some Indian outsourcing firms to overlook credential verification rigorously. This practice results in hiring workers with fabricated or exaggerated educational backgrounds, certifications, or experience.
•	Lowered Quality of Work: Relying on unqualified individuals can lead to substandard outputs, increased rework costs, and diminished customer satisfaction, which can damage a company’s reputation.

c. Impact on Brand and Customer Trust

•	Decline in Service Quality: Outsourced teams may lack the training, qualifications, or understanding of U.S. industry standards, leading to declines in service quality.
•	Customer Frustration: American consumers often report frustrations when dealing with unskilled offshore customer service, impacting brand loyalty and damaging the company’s market position.

2. Knowledge Transfer and Strategic Exploitation

a. Acquisition of U.S. Companies for Knowledge Transfer

•	Strategic Acquisitions: Large Indian firms often acquire U.S. companies to gain access to specialized knowledge, proprietary technologies, and operational expertise. This acquisition strategy is typically followed by systematic efforts to transfer knowledge to Indian teams.
•	Gradual Transition to Offshore Workforce: Once the knowledge transfer is complete, Indian companies frequently replace American workers with offshore staff at lower wages, regardless of the skill disparities. This practice results in job losses in the U.S. and reduces the quality of operations as highly trained American employees are replaced with less experienced workers.

b. Undermining U.S. Competitive Advantage

•	Erosion of Expertise: Knowledge transfer often involves sharing proprietary processes, technologies, and methodologies, which can dilute the competitive edge of U.S. industries. As American companies transfer expertise offshore, they risk permanently eroding their unique value proposition.
•	Intellectual Property Risks: In some cases, strategic knowledge transfer can lead to IP risks, where proprietary information is exposed to different legal and regulatory environments that may not provide adequate protections.

3. Economic and Social Impact on U.S. Workforce

a. Job Loss and Wage Suppression

•	Domestic Job Replacement: By moving critical operational functions offshore, Indian companies create a direct replacement of American jobs with cheaper, lower-skilled labor abroad, reducing opportunities for U.S. workers.
•	Wage Devaluation: The knowledge transfer model allows Indian firms to cut costs significantly by employing lower-wage workers, leading to wage stagnation and reduced benefits for American employees who remain.

b. Decline in Innovation and Skill Development

•	Reduced Domestic Talent Investment: The gradual outsourcing of skilled jobs reduces American companies’ incentive to invest in their local workforce’s training and development.
•	Impact on Future Talent Pipeline: With fewer entry-level and mid-career positions available, younger workers are less likely to enter fields prone to outsourcing, shrinking the future U.S. talent pool in high-demand areas like technology and engineering.

4. Proposed Solutions to Mitigate Outsourcing Challenges

To address the negative impacts of outsourcing, including issues of skill verification and knowledge transfer, the U.S. government and companies can take proactive measures. Here are some recommended solutions:

1. Strengthen Credential Verification Requirements

   • Rigorous Standards for Outsourcing Firms: U.S. companies should require outsourcing partners to implement strict credential verification for all employees working on American projects.
   • Audits and Compliance Checks: Regular audits should be conducted to ensure that outsourcing firms uphold high standards and verify employee qualifications rigorously.

2. Implement Regulatory Reforms to Limit Strategic Knowledge Transfer

   • Restrictions on Knowledge Transfer in Key Industries: The U.S. government could limit knowledge transfer for critical technologies and intellectual property, especially when outsourcing is involved in sensitive sectors like technology, finance, or national security.
   • Legal Frameworks for Intellectual Property Protection: Enhanced IP protections and stringent contractual terms should be enforced to protect American companies from losing valuable expertise through knowledge transfer.

3. Incentivize Domestic Employment and Training

   • Tax Breaks for In-House Skill Development: Provide tax incentives for companies that invest in developing their local workforce, reducing their reliance on offshore labor.
   • Public-Private Partnerships for Workforce Development: Encourage collaborations between government agencies, educational institutions, and private companies to create specialized training programs in high-demand fields.

4. Discourage Acquisitions Aimed at Knowledge Transfer and Outsourcing

   • Regulatory Oversight of Foreign Acquisitions: Strengthen oversight of foreign acquisitions by Indian firms where there is evidence that the primary purpose is to conduct knowledge transfer, followed by outsourcing.
   • Transparency and Reporting Requirements: Companies acquired by foreign entities should be required to disclose knowledge transfer activities and planned staffing changes to ensure that American jobs and expertise are protected.

5. Consumer Awareness and Advocacy

   • Encouraging “Made in the USA” Branding: Companies that commit to domestic labor and high-quality standards should promote this commitment through branding, appealing to consumers who prioritize supporting American jobs.
   • Transparency in Outsourcing Practices: Requiring companies to disclose outsourcing practices and locations can inform consumers, enabling them to make choices aligned with supporting domestic job growth and quality standards.

Conclusion

The practice of outsourcing jobs to India, particularly when it involves unskilled labor, questionable credentials, and strategic knowledge transfer, undermines U.S. industries, workforce development, and long-term economic security. Through proactive measures such as strengthening credential verification, limiting knowledge transfer, and incentivizing domestic training, the U.S. can address these challenges effectively. Additionally, increasing transparency around outsourcing practices empowers consumers to support companies that prioritize high standards and domestic employment, ensuring a sustainable and competitive American economy.

Summary

Restricting outsourcing, particularly where credentials are dubious and knowledge transfer is exploited, is essential to protect the quality of American jobs, industry standards, and the U.S. economy. By implementing stronger regulations, improving workforce development, and promoting transparency, the U.S. can create an environment where outsourcing practices are fair, ethical, and aligned with national interests.

[vm204 (Valerie Mills)]

I agree, we need to implement an immediate suspension on all immigration, including H-1B visas, student visas, and green cards, for a minimum of one year. This temporary halt will allow the U.S. to reevaluate and reform immigration policies to prioritize national security and American worker interests. Besides the great ideas you have proposed, we should also do a comprehensive overhaul of the immigration system should be undertaken, focusing on:

• Security screenings for all applicants.
• English fluency requirements for visa holders.
• Financial self-sufficiency checks, ensuring that no visa holder is a burden on public assistance programs.

Reforms to the H-1B Visa Program

Starting on day one, reform the H-1B visa program to prioritize U.S. workers and reduce abuse by corporations. Stricter regulations must be implemented to ensure that U.S. workers are not displaced, and foreign workers are not exploited:

• Background checks for all H-1B applicants and their immediate families.
• English language proficiency requirements for all H-1B workers.
• Proof of financial independence , ensuring that visa holders and their families can sustain themselves without access to public assistance.
• Job posting requirements , where companies must advertise positions domestically for a specified period before applying for H-1B workers.

Strengthening the U.S. Workforce : To maintain the integrity of the American workforce and protect jobs for U.S. citizens, we must reform current employment policies and visas.

• H-1B Visa Reform : Implement stricter regulations on H-1B visas to ensure that they are only granted to individuals who fill critical skill gaps in the U.S. workforce. This includes requiring comprehensive background checks, English language proficiency, and adequate financial support to prevent reliance on government aid. Companies should be required to post job openings for U.S. citizens for an extended period before turning to foreign workers. This will protect American jobs and reduce the exploitation of foreign labor at lower wages.
• Reviewing Foreign Contractors : Conduct a thorough review of all U.S. government contracts to ensure that foreign workers or contractors are not filling roles that could be served by American citizens. Any contracts involving infrastructure, technology, or defense should prioritize U.S. workers and U.S.-based companies to strengthen national security and job creation.

[vm204 (Valerie Mills)]

Support Notes for the items mentioned above :

H-1B Visa

The H-1B visa is a non-immigrant visa in the United States that allows U.S. employers to employ foreign workers in specialty occupations temporarily. These occupations typically require specialized knowledge and a bachelor’s degree or equivalent in a specific field.

Some key points about H-1B visas include:

Eligibility: To qualify for an H-1B visa, the foreign worker must have a job offer from a U.S. employer for a specialty occupation and meet the educational and experience requirements.

Duration: H-1B visas are initially granted for up to three years, with the possibility of extension for up to six years.

Quota: The number of new H-1B visas issued each fiscal year is capped at 85,000. As of my last update, 20,000 of those were reserved for individuals with advanced degrees from U.S. institutions.

Employer Sponsorship: An employer must sponsor an individual for an H-1B visa. This involves filing a petition with the United States Citizenship and Immigration Services (USCIS) on behalf of the foreign worker.

Labor Condition Application (LCA): Before filing the H-1B petition with USCIS, the employer must obtain a certified Labor Condition Application from the Department of Labor (DOL). This ensures that the employment of the H-1B worker will not adversely affect the wages and working conditions of similarly employed U.S. workers.

Dual Intent: H-1B visa holders can pursue lawful permanent residence (a green card) while in the United States on an H-1B visa. This is known as “dual intent.”

Dependents: H-1B visa holders’ spouses and unmarried children under 21 years old are eligible for H-4 visas, which allow them to accompany the H-1B visa holder to the United States. However, H-4 visa holders are generally not permitted to work in the U.S., although some changes in recent years have allowed certain H-4 spouses to apply for work authorization under specific circumstances.

[vm204 (Valerie Mills)]

Effects of H1B Visas

U.S. Citizens Affected by H1B Visas Comment Key Points

Allegations

Concerns about abuse of the H-1B program: U.S. Workers are worried about companies, especially in the I.T. industry, exploiting the H-1B program to replace American workers with lower-paid foreign workers.

Complaints

Corporate interests vs. U.S. Workers: Corporate interests prioritize cost-saving measures over the welfare of U.S. Workers, leading to practices that disadvantage American workers.

Characteristics of Complainants

Quality of H-1B visa holders: Observations have been made about the declining quality and experience of H-1B visa holders, suggesting that the program may be abused to suppress wages in the I.T. industry.

Solutions

Proposed solutions: Suggestions for reform include implementing stricter regulations on H-1B visas and advocating for greater representation of ordinary citizens in government to address the issues faced by U.S. Workers.

Use of H-1B Visas

Political and governmental criticism: Both the Democratic and Republican administrations are criticized for failing to effectively address the issues with the H-1B visa program.

Legal Enforcement

Cultural and societal attitudes: Some commenters express frustration with perceived cultural favoritism toward certain groups and corporate interests over the welfare of U.S. Workers. To protect U.S. workers, the program needs to be reformed and supported by the EEOC.

Positive/Negative Aspects of H-1B visas

Fill Skill Gaps: H-1B visa holders often fill positions in specialized fields with a shortage of qualified American workers.

Wage Suppression: Critics argue that H-1B visas can lead to wage suppression, as some employers may hire foreign workers at lower wages, undercutting American workers.

Innovation: H-1B visa holders contribute to innovation and competitiveness in technology, healthcare, and finance by bringing diverse skills and experiences.

Job Displacement: There are concerns that some companies abuse the H-1B visa program to replace American workers with lower-paid foreign workers, leading to job displacement among American workers. There are many instances where qualified U.S. Workers were laid off and replaced by H-1B visa holders. (See examples below.)

Job Creation: Some studies suggest that H-1B visa holders create jobs for American workers by spurring innovation and entrepreneurship, particularly in the technology sector.

Dependency: Critics argue that some industries have become overly dependent on H-1B workers, which may hinder efforts to invest in education and training programs for American workers.

Economic Contributions: H-1B visa holders contribute to the U.S. economy through their work and consumer spending, supporting economic growth and development.

Visa Abuse: There have been instances of visa fraud and abuse within the H-1B program, including cases where employers exploit visa holders for cheap labor or engage in fraudulent practices.

Cultural Exchange: H-1B visa holders bring diverse perspectives and experiences to the U.S., contributing to cultural exchange and diversity in the workforce.

Quality of H-1B visa holders : There are observations about the declining quality and experience of H-1B visa holders, with some commenters suggesting that the program is being abused to suppress wages in the I.T. industry.

Corporate interests vs. U.S. Workers : Some corporate interests have diverged from those of most Americans, leading to practices prioritizing cost-saving measures over the welfare of U.S. Workers.

Cultural and societal attitudes : There is a clear cultural favoritism towards specific groups, whether it be Indian workers favored by Indian firms or corporate interests favored by politicians and organizations.

Above provides an overview of both the positive and negative aspects of H-1B visas, highlighting the complexities and trade-offs associated with the program.

Chart proposing new H-1B visa policies for the USA based on the best policies/rules identified from the comparison:

Proposed H-1B Visa Policies

Immigration Policy

Implement a points-based system similar to Canada for skilled workers, which would allow for greater flexibility and transparency in visa processing.

Eligibility Criteria

Maintain existing criteria requiring a job offer from a U.S. employer but prioritize applicants based on skill level, language proficiency, and educational background.

Processing Time

Streamline visa processing and reduce processing times by implementing efficient online systems and increasing staffing at USCIS. Aim to process applications within a reasonable timeframe, ideally within a few weeks to a few months.

Quotas and Restrictions

To meet the demand for skilled workers in key industries, remove or significantly raise the annual cap on H-1B visas. Implement targeted quotas for specific occupations or industries facing shortages.

Renewal and Extensions

Simplify the renewal and extension processes to reduce bureaucratic hurdles and administrative burdens for employers and visa holders. Allow for a seamless transition between visa periods to ensure continuity of employment.

These proposed H-1B visa policies aim to improve the current system by incorporating elements from the best practices observed in countries like Canada, Switzerland, Japan, and Singapore. They focus on enhancing efficiency, transparency, and flexibility while addressing the needs of both employers and skilled foreign workers.

A table shows the Disney case and the other examples:

Company Allegations

Walt Disney Parks and Resorts

American I.T. workers were laid off and replaced by foreign workers, primarily from India, who were hired on H-1B visas. Workers claimed they were required to train their replacements.

Southern California Edison (SCE)

Hundreds of American I.T. workers were laid off and replaced by foreign workers, including those on H-1B visas. Workers alleged they were required to train their replacements.

Infosys

Allegations of systematic abuse of the H-1B visa program to bring Indian workers into the U.S. and pay them significantly lower wages than their American counterparts.

Cognizant

Allegations of favoring South Asian workers for job placements and promotions, bringing in large numbers of H-1B visa holders to replace American workers and drive down wages.

U.C. San Francisco (UCSF)

They were outsourcing I.T. positions to a subcontractor employing foreign workers, including those on H-1B visas, leading to layoffs of American workers. Critics argued that this undermined job opportunities for Americans.

These cases highlight instances where American workers have alleged that they were displaced by H-1B visa holders, sparking debates about companies’ use and abuse of the visa program.

Concern Examples

Declining Skills and Expertise - Instances where H-1B visa holders needed moresary technical skills or industry-specific knowledge for their positions.

• Observations of a shift towards lower-skilled individuals being sponsored for H-1B visas, contrary to the program’s original intent of attracting highly skilled workers.

Outsourcing Companies - Accusations against outsourcing companies, particularly from countries like India, flooding the H-1B visa lottery system with applications for lower-skilled positions.

• Concerns about these companies undercutting American workers and driving down wages in the I.T. industry through H-1B visa holders.

Reports of Misrepresentation - Cases where H-1B visa holders misrepresented their qualifications or work experience to secure employment in the United States.

• Instances of individuals exaggerating credentials or falsely claiming experience in specialized fields to qualify for H-1B visas.

Lack of Diversity and Innovation - Criticisms regarding the over-reliance on H-1B visa holders from specific countries, particularly India, leading to a need for more diversity and innovation in the I.T. industry.

• Arguments that companies should take advantage of diverse perspectives and talents by favoring workers from specific regions, hindering technological advancements and problem-solving.

[Andrea364 (Andrea)]

Hi, please check and support my Proposition to Limit Employee Outsourcing in U.S. Companies.

[GoUSA (Stacey)]

I have a proposal too that discusses this topic.

Bring back white collar jobs outsourced overseas or replaced with H1B Visa workers

NOTE: Going forward the initial policy draft presented will be further defined using a collaborative approach with @GoUSA @waynetom @Momzilla. If anyone is interested in working with us, please let me know. PLEASE consider giving the policy your vote. We are enhancing the policy to quantify how prevalent this issue truly is and providing recommendations for holding companies accountable. Those not close to the H1B Visa hiring practices would be shocked how many Americans get shut out from bei…

Consider merging proposals and working together.
@S_Kirk @vm204

[Lisajo (Lisa)]

UnitedHealth group is doing this non stop. All our jobs are going to India, Philippines, etc. Do we really want all our personal data, names, address, social security numbers and ALL medical information being sent offshore? I’ve been on 2 different teams in UnitedHealth and both teams work have been completely sent offshore. Literally thousands of jobs are being eliminated for U.S. workers for just this company alone. And it’s all medical/personal information.

[Colleen_OBrien]

I work for a competitor of United and they are doing the same. All jobs are going to offshore and they are making them employees. Another massive layoff this week.