New H1B Visa Fees Will Make US Companies Outsource Workforce

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00:00So an Indian techie who comes and works for $60,000 a year is taking away, according to

00:06Mr. Trump's supporters, jobs from an American who would not work for less than, let's say,

00:10$85,000 or $90,000 a year, for argument's sake. I'm talking about a junior techie,

00:15the salaries go up at other levels. So what they're saying is, let us make the low-end

00:20jobs unviable by the $100,000 fee, so only the high-end, really desirable, irreplaceable

00:27top people who are worth it for a company to spend $100,000 on, only they will come.

00:32Now, I don't understand the logic of this, whether it's actually ever going to work.

00:37First of all, for many companies, the obvious solution will be to outsource the job. That

00:43is, what used to be done in America can now be done either by the same multinational companies'

00:48units in Europe, in Germany, in England, in Ireland, in France, or in many cases in their

00:54global capability centers in India, so that, in fact, the same Indian techies may now be

01:00working for the same money in India rather than working in America. The challenge will

01:06be in the short term for the Indian companies that would take on a contract to do a job, whether

01:13it's for an American state government, a big American company, a hospital, whatever it may

01:17be, and fulfill that contract by sending their people from India on H-1B visas. That will

01:24now become unviable. So many of those contracts will either need to be revised or will no longer

01:29be feasible for Indian companies to bid, because we cannot pay $100,000 per person.