H1-B restriction: Silicon Valley to be hurt

H1-B restriction: Silicon Valley to be hurt

Silicon India
By Benny Thomas
Tuesday, 25 August 2009

Bangalore: Several bright minds outside America take that flight to the U.S. seeking better opportunities in places like Silicon Valley, which is often described as the Mecca for entrepreneurs. However, with the hue and cry surrounding the H-1B visas the flow of immigrants into U.S. may get affected, which may also diminish the tech prowess of the most technologically advanced nation in the world.


There was at least one immigrant founder in 25 percent of all engineering and technology companies established in the U.S. between 1995 and 2005, reveals a study by a group of Professors in Duke University and the University of California. These entities generated over $52 billion in 2005 sales, while creating over 450,000 jobs as of 2005. With these contributions by the immigrants in the U.S., any impediments in the issuance H1-B visa can have a huge impact on the American economy.

The U.S. administration under George W Bush had been pushing for immigration reforms, which failed to take shape last year. There are roughly 12 million illegal immigrants in the U.S. and the reforms are aimed at making a way for some of these immigrants to stay in the country legally. Now that Barack Obama has taken charge in the White House, are these reforms on his priority list?

Recently, Obama assured the pro-immigrant activists that the immigration reforms would not lose its importance over the health-care reform and the energy legislation. The President is likely to endorse the views of Senator Charles Schumer, Chairman of the Senate's Immigration Subcommittee, who has said that he will introduce new reform legislation this autumn.

However, there are some challenges that Schumer and team faces in order to make the legislation a reality. Senators Richard Durbin and Charles Grassley are sponsors of a bill to stop the alleged abuse of H-1B visas, which allow companies to employ workers from overseas for limited stays. They have introduced a legislation to restrict the number of H1-B visas to be issued, which was bombarded with criticisms outside U.S. These visas are popular among technology companies like Microsoft, Infosys and Wipro, which bring some of the brightest minds from around the world to work in the U.S.

The current situation can make U.S. less attractive to immigrants, who may eventually contribute to the country's growth. Take the examples of Vikram Pandit, Indra Nooyi or Sanjay Jha, who took that flight to the U.S. and have made it big by heading some of the largest companies on the planet.

Commentators like CNN's Lou Dobbs have often highlighted about a huge reverse brain drain in the U.S. - which has been his dream - that is closer to reality. Immigrants, who have received their education and work experience in U.S., are packing their bags to go back to their homeland. In addition, there is also a decline in the number of foreign students seeking admissions in the U.S. universities, for the first time in five years.

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'Talent deficit' may hit Indian firms

'Talent deficit' may hit Indian firms

By siliconindia news bureau
Sunday,23 August 2009

Bangalore: After showcasing their talents to the world all these years, companies in India could face a huge 'talent deficit' in the coming years, says a report by Deloitte, a global consultancy firm. As per the report, the reason for this scarcity is that the country is not producing enough people equipped with the right skills required for the globalized environment.
The report titled, 'New India Manager' states that new talent management model in companies will have to shift in outlook. The report suggests that paradigm of 'scarcity of jobs' should convert to 'scarcity of talent'. "Unless a fundamental shift occurs in the educational system, it will continue to produce degree holders who will lack skills to operate in a corporate environment," said Manish Agrawal, Vice President (Strategy and Innovation) at Deloitte.

Agrawal has authored a study on the evolution of the Indian manager from the pre-liberalization period till now. The report stated that globalization, has helped Indian managers to develop their competencies and a global outlook that has unleashed a lot of creativity and innovation in the domestic industry. "However not many managers in the country have required soft skills, like communication abilities for operating in a global environment among others. We need to build such skill sets to enhance our talent pools," Agrawal said.

The Deloitte report stated that it remains to be seen as to what extent the country would be able to enhance the competency level of its young population to make them employable. This is also a challenge which the Indian policymakers would have to deal with in the years to come, it added. According to Agrawal, if the shift is made now it will take five to 10 years to generate a good quantity of employable talent.

Other than the upgrade of skills, the challenges which managers have to face going forward include retention of existing talent in the company, support learning and development of employees. Moreover, there is a growing talent gap in the developed world as well, which will continue to target Indian managers. In the years to come U.S., Europe and Japan are going to see an ageing population and a reduction in available talent and workforce. The report revealed that there was already an increasing recognition of the quality of Indian managers and there is every chance of this trend accelerating further.

IBM Smarter Planet University Jam

Dear IBM Smarter Planet University Jam participant,

Thank you so much for participating in our 2009 Smarter Planet University Jam. The three-day forum held in April brought nearly 2,000 students and faculty together with IBM experts, clients and business partners to discuss ideas for a smarter planet. We truly appreciate all of your outstanding and enthusiastic contributions!

We are pleased to share with you the Jam report entitled "Jamming for a Smarter Planet" which features your thoughtful insights and ideas for innovation on complex global problems including pollution-free, inexpensive energy; the skills students need to compete in the globally integrated economy; environmental protection and water management; and advanced healthcare. In the report we also recognize our top student and faculty contributors from the Jam.

Please visit ibm.com/university/smartplanet_jam to read and download the Jam insights summary report, review the press release, and listen to podcast interviews with the top two faculty contributors and Jai Menon, vice president of technical strategy and university programs, IBM. Thank you again for your participation!

If you have any questions or comments regarding the Jam, please feel free to contact IBM's global University Relations team at univrel@us.ibm.com.

Regards,
IBM University Relations
ibm.com/university