"Outsourcing" has recently became a codeword for things that are not good for America.
For example, Senator Grassley recently sent a letter to the Department of Homeland Security asking for a tight screening of the H-1B program, to avoid abuse and fraud in the system. He stressed on employers being held accountable, for violating the visa program and to prevent H-1B outsourcing.
The Senator was highly critical of H-1B outsourcing. But outsourcing in the US is an integral part of any business model. It appears the Senator was confusing between H-1B outsourcing and Offshore outsourcing. The latter normally referrers to a situation where jobs are lost to foreign workers becuase US companies are setting centers overseas. H-1B outsourcing, on the other hand, is when companies use other companies to provide services in the US through the use of H-1B workers. They are not the same.
Many argue that neither is bad for the US economy in any event. According to a study by the Information Technology Association of America (ITAA), offshore outsourcing of US IT jobs to foreign workers is beneficial to the US economy thereby resulting in the creation of twice as many jobs as are displaced. Outsourcing helps companies be more productive and competitive. The savings from outsourcing are invested in new products and services resulting in market expansion and creating new jobs.
Senator Chuck Grassley, however, keeps referring to 'outsourcing H-1B' to other companies as being a bad thing. Perhaps he is unaware that this is permissible under H-1B visa laws provided companies comply with the H-1B prevailing wage regulations. Outsourcing is vital as an economic business model.
Senator Chuck Grassley may disapprove of outsourcing H-1B workers; reality is that outsourcing within US companies is the norm. For example USCIS outsourcers its fingerprinting services and customer service response to private US third parties. Senator Chuck Grassley's well publicized hostility towards the H-1B visa program is based on misguided information. He is clearly not well informed of the benefits of the H-1B visa program to our economy and that outsourcing H-1B workers is permissible under US laws.
