Facebook/Google should be forced to hire only Americans. At gunpoint if needed.
01-31-2016, 07:56 PMQuote: (01-31-2016 02:45 PM)The Wire Wrote:
Quote: (01-27-2016 11:21 PM)greekgod Wrote:
When employed by a big consulting firm, visa IT workers, lets just stick with developers for arguments sake, are being billed out at a rate of no less than $125/HR which equates to annual cost of 250K. These rates can go much higher. The average US IT workers salary is between 85-130K. The average salary for consulting worker is between 65-95K (+the H1 filing process costs a few thousand) which is less employment cost for labor to the employer but because there are now profits involved in the equation, the client ends up paying substantially more. Outsourcing is already operating at a huge loss. Additionally, the knowledge doesn’t stay with the organization that paid for it. So when Raju from Accenture gets put on a new project, his knowledge goes with him and poof goes the value. Yes there is documentation but lets be real, its not good and done in a way for the long term. The Fortune 1000 corp and consulting firm know the terms of the agreement when they get into it.
I understand why a company would be ok with $125/HR for a H1B for say 6 month until a project is complete and then they are done with them. My question is how does it make financial sense to outsource entire departments full time to a contracting company. For example Sancho posted above a story about Disney IT employees to training their H1B replacements. Are these long term strategic cost cutting plays by upper management to eventually have a skelton crew physically in the U.S. and then have an offshore team in India making pennies on the dollar doing the bulk of the work? So the in the long term the company saves on salary, rising health benefit costs, 401ks..etc?
http://www.nytimes.com/2015/06/04/us/las...ments.html
Well, the fixed cost goes down so much. Orgs dont have to worry about salary, PTO severance, HR & payroll costs go down, bye bye bonuses, and training costs subsist. Yeah, they have a higher hourly cost but if the company needs to shore up funds, they can cut it in a heartbeat. If the worker is off, the PTO and time comes from the consulting firm. If the project team is fucking up, well there are 10 more consulting firms willing to take on the work.
Funny story though, one day I was talking to a guy from Shell. He works on their O&G trading platform which at the time was handling a $1billion/day. Huge implications for their top and bottom line numbers.
One Friday, some offshore guy from Infosys, I think it was them, brought the whole system down. Everyone spent the next 48 hours trying to get it back up and running for Monday because if it wasn't; the CEO would be in that room real fucking quick.
Typing this out now, its clear the US guys should have said, nope, you fix it.
After that, he said the whole tune changed and there was a big push to get away from the offshore model.