Itâs common knowledge that Silicon Valleyâs innovation engine would grind to a screeching halt if tech companies couldnât hire foreign workers to make up for a chronic shortage of American engineers and scientists. And everyone knows that the H1-B visa program prevents that from happening.
Continue Reading Below
But what if thatâs not exactly true?
What if there are plenty of new graduates and experienced workers to fill those specialized STEM jobs, right here in America? And what if the H1-B foreign worker program has been subverted by multinational consulting giants so tech companies can cut their labor costs?
Now thatâs a lot closer to reality. And itâs about time, in my opinion, that somebodyâs finally getting around to doing something about it.
The leaked draft of President Trumpâs proposed executive order to improve our foreign worker visa program has been circulating for just a week, but the problem itâs intended to fix has been rampant for years. While once well-intentioned, it has morphed into a tool for outsourcing American jobs to lower-paid, foreign-born workers.
This is not some dirty little secret that somehow snowballed out of control and became a massive snow job on the American people; if this is a secret, itâs got to be the worst-kept secret since Silicon Valleyâs rampant ageism problem. And itâs no coincidence that the two are related. Who wants to pay a 45-year-old engineer twice as much to do the same job as a recent grad from India?
I believe it was the New York Times that, in 2015, first broke the story of how outsourcing consulting giants Tata, Infosys and Wipro (all based in India), as well as Cognizant and Accenture, figured out how to game the system and flood the H1-B lottery with applications so theyâd get the lionâs share of visa grants.
And as far back as 2013, study after study by respected academic researchers effectively debunked the myth of a systemic shortage of American engineering and science workers (see âThe STEM Crisis Is a Mythâ in IEEE Spectrum or âThe Myth of the Science and Engineering Shortageâ in The Atlantic).
And Iâm sure nobody wants to hear this, but this is not some grand conspiracy dreamed up by big tech CEOs to boost their stock price. Rather, itâs an inevitable consequence of the multi-decade globalization and outsourcing trend. To compete, American tech companies need to spend the least on the very best talent they can find, simple as that.
Sometimes that means helping a foreign-born Stanford student obtain a work visa to stick around after graduation. Other times it means outsourcing an entire function to an IT consultancy whose U.S.-based employees also happen to be H1-B recipients. Itâs all about getting the most talent bang for the buck.
If there is a culprit in all this, itâs the big government bureaucrats that were asleep at the switch and allowed a good program to be corrupted.
The beauty of Donald Trumpâs executive order proposal is that, rather than dictate specific measures, it calls for the appropriate departments to get their acts together, review the program, stop companies from gaming the system and ensure that they consider American workers first, which is consistent with his election platform.
It also calls for transparency and verification, which is about time. And hereâs a little factoid: The H1-B program only grants 85,000 work visas per year. Thatâs about one-eighteenth of 1% of the U.S. labor force. Youâd think even a federal government operation could manage that effectively, wouldnât you?
In the end, I do believe that American technology workers and companies alike will benefit from an overhaul of a dysfunctional program thatâs been broken for years. And if folks would just start paying attention to whatâs going on right under their noses, that would also help.