Experts feel immigration restrictions on H-1B and L-1 visas will propel outsourcing

It is viewed that work visas such as H-1B and L-1 help to keep jobs and investments in the US; it would be injudicious to think that in existing unfavorable immigration environment, investments would not slip abroad. 

The increasing curbs on work visas would eventually result in pushing out the investments, according to Stuart Anderson, who contributes to the Forbes, reported. He added that companies would rather go around the immigration regulations by giving contracts to other companies.

Anderson said the shift in business outside the US and the strategy to expand companies in a foreign land is the direct outcome of the ever increasing US immigration rules. He added that it would be unwise to think that the companies would stick to the US despite its stringent immigration laws.

In addition, Tyler Cowen, who is an author and an economist from George Mason University, pointed out that both outsourcing and immigration are interconnected. “An increased intake of immigrants in the USA would mean that the areas in which those immigrants work are less likely to see jobs in place,” he wrote in his book Average is Over. “Immigration to the US makes it possible to keep those jobs at home. In fact, the bigger a threat outsourcing becomes, the more important immigration is for keeping us competitive and for keeping other complementary jobs in place.”

Cowen argued that not only it takes an economic hit but also hurts the global reputation of the country.

Similar views were echoed by Blake Irving, who leads the web hosting company GoDaddy. “The simple math suggests that more high-skilled visa holders in the US mean an overall reduced need for hiring talent offshore.”

Both Irving and Anderson espouse the view that work visa programs such as H-1B and L-1 are the most feasible options to retain the talent of highly skilled foreign workers and international students.

Reportedly, Rick Kabrt, who is a partner at Everest group, told Anderson during the interview, “The global competitiveness of US businesses is boosted by well – structured and executed outsourcing in selective areas, which free up resources and funds to invest in the core competencies that spearhead growth and value.” He continued, “Cost saving can range from 15% at a minimum to as high as 70% and often as important are speed to market by leveraging the scale and tools/technology of the service providers.”


Leave a Comment

Your email address will not be published. Required fields are marked *


This site uses Akismet to reduce spam. Learn how your comment data is processed.