HR & software destinations: The US: Still #1

Indian software professionals have looked at horizons beyond

India for wider experiences and better opportunities. The US has been the

hottest destination for these migrating minds. There are 250,000 Indian software

developers employed in the US–a fact well realized by the US congress. For the

second successive year, it has increased the number of H1B visas to be granted

to foreign professionals–from 115,000 in last year to 195,000 for each of the

next three years. With the second largest scientific, English-speaking manpower

base, India is expected to contribute nearly half of this requirement.

US’s

reign is now being challenged. Japan, France, Italy, Britain, New Zealand, South

Korea and Finland are all looking to hook Indian professionals. The competitive

threat among countries eager to hire foreign manpower, has forced them to offer

increasingly attractive packages.

New Zealand plans to recruit 200 experts from India using two

common reference points–cricket and the use of its locations for Bollywood

blockbusters. The appeal is a package that combines lifestyle and enjoyment.

Britain has adopted a more direct approach. The lord mayor of London, Clive

Martin, promoted the city with a USP of 393,000 Indian residents. Germany, in a

bid to recruit 3,000 Indian IT experts has come out with a green-card scheme.

German companies, desperate to fill the shortage of 75,000 IT experts, have been

promising delivery of Indian food everyday to the new recruits. With such

fanfare, does the US lose its magnetic pull?

Still favored

"Past trends show that the US has been the most

preferred destination for the Indian IT professionals," says Nasscom. It

estimates that as many as 40,000 to 50,000 IT professionals are traveling to the

US and Europe every year. According to the US bureau of labor statistics,

US-based IT companies need to fill some 269,000 jobs. The potential for IT

professionals seeking jobs, is immense with the number of technological jobs

expected to expand from the current five million to six million by 2008.

The US has a vast domestic market driven by the world’s

largest hardware base that extends to a strong R&D program with governmental

funding, as per Nasscom. This market faces shortage of a skilled workforce that

is English speaking, innovative and uses state-of-the-art technologies. India,

with its human resource can address this problem.

So, the environment is inviting and Indian experts are right

for the job, but then why only the US? The dynamic nature of the US market, the

high level of computerization, the immense job opportunities and the cultural

and language familiarity make the US the first preference for Indian IT

professionals. According to R Vidyasagar, head, HR, i-flex solutions, "The

US offers a variety of jobs spanning different areas and skill sets."

Savings also prove to be a destination-decider. "The

value of differential cost of savings is maximum in the US. The cost of living

is also fairly low as compared to other countries," explains Ramanand

Baliga, GM, IBM Global Services.

Mere opportunities and incentives are not enough. For many

Indians, the desire to go to the US is based on their perceptions. Over the

years, the examples of Sabeer Bhatia of Hotmail fame and Rajesh Jain of

IndiaWorld, have bred the belief that the US is the land where dreams come true.

Concurs Baliga; "One gets to read several stories of successful Indians in

the US."

Compared to the US, other countries lose out on the

"desire" factor. Jatinder Kaur, deputy manager, visa-processing, SQL

Star reasons, "The offers coming in from these countries are less lucrative

compared to the ones offered by the US." Take for example Germany. It threw

open its doors for Indians with the green-card scheme. After six months, there

are few takers for the German offer. One of the major drawbacks in the German

scheme is that unlike in the US work visas, the spouse of an Indian under the

green-card scheme of Germany would have to separately apply for visa. "Many

countries other than the US have stringent rules for visas and work

permits," points out Nasscom.

Another factor is the experience that could be gained.

According to MM Mullick, head, IT recruitment, Noble & Hewitt, "For

professionals with an experience of zero to three years, the priority is to

migrate to the US where they can get the right exposure and then move on to

other countries."

Then, there are country-specific issues. The racist groups’

resistance to the hiring of foreigners in Germany has undermined the security

for overseas workers. Japan and many European countries pose a language hurdle,

and South Korea is perceived as a closed society. "Countries that think

primarily about their own nationals and treat migrants as a different category

cannot offer opportunities," opines Baliga.

Hitches and concerns

Will the US continue to hold its position, as the software

professional’s paradise in the future? There have been criticisms that the US

is exploiting the cheap Indian labor available. Though there are concerns that

this happens only in some cases, the exploitation of labor is an accepted fact.

Mullick says, "There is exploitation to a certain extent everywhere,

especially if a person is migrating through a body shopper. If a person is

recruited directly by a company, there is no exploitation per se."

Another issue is the fear of being regarded as an outsider

that haunts Indians abroad. H1B visa holders lose their status if they do not

stay with the same employer for five years. The US government’s policies do

little to dispel the fear. While on one hand, foreign professionals are being

welcomed; on the other hand, the US is gearing up to meet its requirements

indigenously. The US has, while increasing the number of visas to be issued,

also doubled the federal fees that companies pay for H1B visas–from $500 to

$1,000. This amount will be used to train and educate the Americans on the

expertise that is being hired. In the face of conscious efforts by other

countries to pull migrating Indian professionals away from the US, such issues

can prove to be an Achilles heel for the US.

Fresh opponents, growing dissatisfaction and national

aspirations are the challenges that lie ahead. The US has begun to address some

of the areas of concern. The new visa bill has a provision that allows H1B

workers to change jobs while in the US. This is hoped to improve the working

conditions and discourage exploitation of labor. Whether such measures will pay

dividends or not, remains to be seen. The US, meanwhile, retains its position as

the leading employer of Indian IT professionals alroad.

PRIYA SIVAKUMARAN



in New Delhi