By Avy Mallik
Ashish Mukharji was all smiles. He just became an American. “Look at this,” exclaimed the Indian American with excitement, “My face is on a U.S. passport!”
The 31-year-old MBA graduate from Yale University seemed quite content with his current position despite being out of a job, because he now has the security of citizenship.
He, along with several thousand other computer and IT (information technology) professionals, have been laid off as a result of the recent fizzle in the U.S. economy. And for most foreign IT workers — who, unlike Mukharji, are not U.S. citizens, their temporary worker status has left them on even shakier ground.
Over the past decade, the success of the computer industry — and subsequent shortage of IT workers, placed Indian and Chinese high-tech workers in high demand. From the early ’90s, there was an increase in the quota of foreign professionals who were allowed into the country. In 2000, the number was 115,000. One year later, it grew to 195,000. But unlike last year, the annual quota has not been reached yet.
“The H-1B work permit allows someone from outside the United States to legally work in the U.S.,” explained immigration lawyer Kelly McCown. “And let me clarify something: the swing in the economy has not made it harder for immigrants to get an H-1B permit, nor has the Immigration and Naturalization service made it tougher for immigrants to get approved as legal Americans. Basically, it’s just that technical companies have stopped hiring IT professionals.”
McCown said that she has seen a decrease in H-1B petitions because corporations are trying to conserve money. Other work permits that allow IT professionals working outside the country for a U.S.-based company to come to the United States, have become more common.
C. Matthew Shulz, who is an attorney for Baker & McKenzie in Palo Alto, disagreed that the number of H-1B petitions is dropping.
“Because more people are being laid off by companies, there has been a sharp increase in the number of aliens with work permits who don’t have a job,” he said.
Shulz explained that to remain in the United States, they must be hired by another company — and apply for a second H-1B.
Survivor
Mukharji had previously worked in the United States under H-1B status. He survived several rounds of layoffs due to dips in the economy. The stress of H-1B holders who face the possibility of unemployment is immense, Mukharji said.
“My friends have all been fired,” he added. “A third of my company’s workforce is completely gone. Most of the time, there are absolutely no guarantees to be hired by your old company once the IT sector picks up again.”
“Losing a job from a large company is much better,” Mukharji said. “For example, Cisco Systems gave its workers six months severance pay. They also promised to hire their staff back once more jobs were available.”
It seems that there is no such luck for professionals who had worked for small companies and dot-com startups.
“The best that most of these ailing ventures can hope for is to be bought up by a larger company,” Mukharji noted. “Otherwise, they usually go bankrupt. No severance pay, nothing.”
Soumen Basu is another Indian American who has been troubled by the recent trend in the computer industry. He, however, is a veteran. Basu operates his own company and has been in the United States for 13 years.
He said that during the last three to four years, software developers had invaded Silicon Valley; some 60 percent of all the newcomers were Indian,
He added: “But with the recent downturn, at least 20,000 IT specialists have left the country.”
While many of these foreign computer experts were Indian, other came from China, Canada and Europe, he said.
Preceding the computer bust, several foreign governments were worried about a ‘brain drain.’ Even though it seems logical that other countries will now have an advantage, Basu doesn’t think so: “The U.S. economy will adversely affect all other countries. It is probable that the economy of other leading computer giants [such as India and China] will nosedive. Even if Asians in the United States return to their respective countries, there will be too many IT workers to tackle the same or if not lower amount of jobs.”
Service industries have also been crippled, Mukharji said.
“Investment banking, networking consultants, and all services related to the stock market are reporting monitorial loss,” he said. “This can be best described as a chain reaction.”
Basu, who resides in a suburb near Washington D.C., asserted that even ordinary industries, such as housing, have been hurt.
“The entire infrastructure that had grown out of computers is in shambles,” Basu said.
Pink Slip Blues
When it comes to crunch-time, no one feels more tension than workers who see colleagues getting axed daily. Peter Ho, whose name has been changed upon request, explained: “My job and future at my company is shaky at best. We are laying off people to reduce the overhead cost.”
Asked why he feels that Asians, many who have H-1B permits, were hired over American professionals, Ho responded, “When it comes to the computers, there is a larger pool of human resources to choose from in Asia. I believe that, when given the choice, companies will now hire American citizens rather than making the added effort to bring a foreigner to the United States.”
Ho also had to go through the strenuous process of transferring his temporary work permit to a green card. He may have to wait for another couple of years if he chooses to become a U.S. citizen.
Saurabh Bahri, who works in a computer consulting firm in San Jose, said that his job may be under threat, as well.
“Friends of mine are now returning to India, where jobs are more readily available,” he said. “Sometimes the company assures its former employees that they will be the first to be hired if the economy strengthens.”
Saurabh recalled the days when you could demand whatever salary you wanted, up to or surpassing $100,000.
“Most companies would pay that much for good service. Now, if you are lucky, you can earn $60,000 a year.”
It’s no surprise that some IT workers are returning home. Still, others are choosing to persevere in the United States.
“It really depends on what you feel is the criteria of success,” Bahri said. “If you want money, then the United States is the place for you. But if it’s peace of mind and stability, then it would definitely be India.”
The biggest question being raised is whether the economy is going to rebound anytime soon. It seems everyone has a different opinion. One thing most agree on, however, is that the industry will never be as big as it was a few years ago.
Said Bahri: “The boom is over.” |
