<<<<< JOB DESTRUCTION NEWSLETTER  No. 1994 -- 3/22/2009 >>>>>

Two business associations from India just finished a large lobbying
campaign in Washington DC. They schmoozed with Obama officials and selected
members of the Senate and House. Both organizations are lobbying groups
that are similar to the U.S. Chamber or Commerce or the Business
Roundtable. NASSCOM and CII came to Washington DC to insure that our
politicians tow the line on the outsourcing of jobs to India and to
increase the number of H-1B visas that Indian nationals can receive.

The two organizations are:

NASSCOM -- National Association of Software and Services Companies. As the
name implies they represent Indian companies that are almost all high tech.
http://www.nasscom.org/

CII -- Confederation of Indian Industry. Another business association that
broader in scope than NASSCOM. They include all sorts of businesses
including manufacturing.

http://www.cii.in/

It's very significant that CII met with Lawrence Summers, who is Obama's
appointment for Director of the National Economic Council. Summers is
considered one of the high priests of the bubble economy and would no doubt
be sympathetic to the CII agenda. Read this for more on Summers:

http://www.dailykos.com/story/2009/3/22/710056/-How-We-Got-Here-(Rubinism-Mu
st-Die)updated
How We Got Here (Rubinism Must Die)--updated, by david mizner

Very little has been said about what Obama officials promised the Indian
lobbyists. In fact if it wasn't for Indian publications we wouldn't even
know the lobbying occurred! The public press releases seem to hint that
Obama will continue with the status quo, but of course that's bad enough
and we don't know what they talked about in private.

The interesting thing that everyone involved agreed to is that H-1B
directly affects the unemployment rate. With the understanding that H-1B
has a negative effect on American employment you would think that Obama and
the Democrats who are supposed to be "labor friendly" would want to reduce
the number of H-1Bs, but apparently that's not what Obama's people told
NASSCOM and CII.

   India's corporate leadership raised the issue of H-1B visa
   restrictions during their first high level interaction with
   Obama Administration officials and was assured that there
   would not be a serious setback to the programme unless
   unemployment rate in US plummets drastically.

The Indian journalists are probably writing with inverse logic perhaps due
to cultural differences in the way India and U.S. measures unemployment. It
looks like what they were trying to say is that H-1B will not be restricted
unless unemployment rises dramatically. Of course computer/IT is
disproportionately affected by H-1B so it's not clear what the Obama people
were referring to -- whether overall unemployment or that which is specific
to STEM (science, technology, engineering, and math). Oh well, at least the
Obama people probably didn't promise to raise the yearly cap. Apparently
they are happy that H-1B hasn't leeched the blood out of the industry
enough to totally kill it. They seem to consider H-1B to be a mutually
beneficial parasite, and unemployed Americans as collateral damage.

So, it seems that NASSCOM and CII received ambiguous results on H-1B but
they must have heard much better news when it comes to offshoring -- it
seems that Obama and Congress will continue to allow offshoring to India.

   "Having met with various stakeholders and experts and discussed the
   protectionist measures with them, Nasscom does not see the "Buy
   America" clause or the discussion on removal of "tax breaks for US
   companies that create jobs offshore" provisions in their current
   forms having any impact on the Indian IT-BPO industry.

The Indian lobbyists sure know who to target. Check out this picture of the
meeting between NASSCOM and Senator Charles Grassley. NASSCOM people
surrounded Grassley on all sides. It looked like a mugging!

http://www.ciol.com/Enterprise/News-Reports/NASSCOMs-update-on-US-and-Europe
-visit/10309117015/0/

Make no mistake: NASSCOM is very strategic about who they target and why.
Grassley is considered a key Senator because he is one of the few who have
questioned H-1B. He sent that letter to Microsoft asking about how many
H-1Bs they use, sponsored a bill with Sen. Durbin that would impose some
reforms on the H-1B program, and he co-authored Amendment 306 to the
Stimulus bill to put mild restrictions on banks that receive TARP money.


   NASSCOM representatives met Mr Grassley, apart from other Senators
   and Congressmen, during their US visit. The Indian IT-BPO
   association expressed interest in working with him on a new visa
   legislation to curb abuse of the H1-B programme, while ensuring
   it doesn’t discriminate against any particular sector or set of
   companies.


In a recent newsletter I questioned why Obama would reinstate Vivek Kundra
the job of chief information officer, especially considering the
significant political risks of doing so. I don't believe Kundra's
reinstatement and the visits by these Indian lobbyists is a coincidence.
Apparently our government is far more worried about kowtowing to India than
serving the American middle class. Oh well, nothing new there!


REFERENCES:

http://ptinews.com/pti/ptisite.nsf/$all/D144110395B988E76525757E00252548
Indian CEOs raise H-IB visa issue with Obama Administration


http://economictimes.indiatimes.com/Infotech/Software/Protectionism-will-onl
y-hurt-the-US-economy-NASSCOM/articleshow/4246128.cms


http://www.businessinsider.com/white-house-promises-india-no-new-h-1b-restri
ctions-unless-unemployment-gets-worse-2009-3
White House Promises India: No New H-1B Restrictions -- Unless Unemployment
Gets Worse


http://www.rediff.com/money/2009/mar/12bcrisis-protectionist-measures-to-hur
t-us-economy-nasscom.htm
Protectionist measures to hurt US economy: Nasscom


http://timesofindia.indiatimes.com/Business/New-H1-B-visa-norms-to-isolate-I
ndia/articleshow/4251475.cms
'New H1-B visa norms likely to isolate Indian IT'

+++++++++++++++++++++++++++++++++++++++++++++++++++

http://ptinews.com/pti/ptisite.nsf/$all/D144110395B988E76525757E00252548

Indian CEOs raise H-IB visa issue with Obama Administration


Lalit K Jha
Washington, Mar 19 (PTI) India's corporate leadership raised the issue of
H-1B visa restrictions during their first high level interaction with Obama
Administration officials and was assured that there would not be a serious
setback to the programme unless unemployment rate in US plummets
drastically.

The issue was raised by the visiting CII's CEO Mission led by Bharati
enterprise chairman Sunil Bharati Mittal, who among others met Lawrence
Summers, Director of the National Economic Council, at the White House
yesterday.

During the meeting, the delegation comprising of top Indian CEOs brought to
the notice the concerns about the recent developments in the US with regard
to H-1B work visa programme and certain provisions in the stimulus bill.

"I do not see that there would be serious setback to H-1B visa programme or
export programme, unless the unemployment rate goes down further in a
severe manner," Mittal, chairman and group CEO of Bharati Enterprise, told
PTI in an interview after the meeting.

"They were positive," Bharati said referring to the response from the Obama
Administration officials with regard to these issues raised by the CII
delegation. "They believed that US will still remain open," he said.

During the meeting the officials shared the pressure the administration is
facing from the US Congress on the issue of unemployment in the country.
PTI


+++++++++++++++++++++++++++++++++++++++++++++++++++

http://economictimes.indiatimes.com/Infotech/Software/Protectionism-will-onl
y-hurt-the-US-economy-NASSCOM/articleshow/4246128.cms

Protectionism will only hurt the US economy: NASSCOM
10 Mar 2009, 0035 hrs IST, Deepshikha Monga, ET Bureau

NEW DELHI: Protectionism will only hurt the US economy and could prolong
the country’s recovery out of recession, IT-BPO association NASSCOM told

officials of the US Commerce and State Departments and the Trade
Representative during its recent visit to the country.

NASSCOM representatives made the visit in the backdrop of President Barack
Obama saying in his maiden budget speech that he will remove tax breaks for
American firms outsourcing jobs and the introduction of the new law that
restricts hiring of foreign workers in the US by financial institutions
that have received bailout from the government.

NASSCOM vice-president Ameet Nivsarkar says the association highlighted the
global nature of business in its meeting with the US officials and how a
protectionist stance could lead to a similar approach being adopted by
other countries towards American firms.

"That could make it even more difficult for the US to come out of the
recession," he said.

The US officials agreed with the assertion but are themselves under a lot
of pressure. Unemployment in the US surged to 8.1% in February, the highest
in 25 years, while job losses since December 2007, when the recession
started, now total 4.4 million.


Outsourcing has been linked to job losses in the US. Senators like Chuck
Grassley have contended that various firms abuse visa programmes such as
the H1-B to bring cheaper foreign workers and displace qualified Americans.
Mr Grassley recently introduced a legislation to prevent recipients of
government bailouts from hiring H1-B visa holders for one year.

The Senate cleared a watered-down version that allows such companies to
hire H1-B workers but first prove they had made efforts to hire American
workers.

NASSCOM representatives met Mr Grassley, apart from other Senators and
Congressmen, during their US visit. The Indian IT-BPO association expressed
interest in working with him on a new visa legislation to curb abuse of the
H1-B programme, while ensuring it doesn’t discriminate against any
particular sector or set of companies. Indian companies figure among the
leading users of H1-B visas but Mr Nivsarkar says people tend to miss out
the fact that they accounted for only 11% of the 107,000 H1-B visas issued
in 2008.

Apart from the US, NASSCOM officials also visited the UK and continental
Europe. The association is working with the European Commission on
pan-Europe work permits that would be eligible across various countries in
the region.

It submitted a white-paper to the commission on the difficulties faced by
foreign workers in obtaining multiple visas and its suggestions. Nasscom is
confident a policy on the same would be formulated this year. 

+++++++++++++++++++++++++++++++++++++++++++++++++++

http://www.businessinsider.com/white-house-promises-india-no-new-h-1b-restri
ctions-unless-unemployment-gets-worse-2009-3

White House Promises India: No New H-1B Restrictions -- Unless Unemployment
Gets Worse
Eric Krangel|Mar. 20, 2009, 11:09 AM|36
PrintTags: Startups, Economy, Online, Big Tech, Politics, H-1B, India
If you think the H-1B issue has been controversial in America, in India
they're apoplectic.

So when a delegation of Indian CEOs visited the White House yesterday to
discuss economic and trade issues, they brought up the H-1B controversy.

Obama Administration officials -- including Lawrence Summers -- assured the
Indian business leaders no new wave of protectionist policies was in the
works. That is, unless unemployment gets worse.

That's what the Indians say they were told, anyway.

Press Trust of India: India's corporate leadership raised the issue of H-1B
visa restrictions during their first high level interaction with Obama
Administration officials and was assured that there would not be a serious
setback to the programme unless unemployment rate in US plummets
drastically.

The issue was raised by the visiting CII's CEO Mission led by Bharati
enterprise chairman Sunil Bharati Mittal, who among others met Lawrence
Summers, Director of the National Economic Council, at the White House
yesterday.

During the meeting, the delegation comprising of top Indian CEOs brought to
the notice the concerns about the recent developments in the US with regard
to H-1B work visa programme and certain provisions in the stimulus bill.

"I do not see that there would be serious setback to H-1B visa programme or
export programme, unless the unemployment rate goes down further in a
severe manner," Mittal, chairman and group CEO of Bharati Enterprise, told
PTI in an interview after the meeting.

"They were positive," Bharati said referring to the response from the Obama
Administration officials with regard to these issues raised by the CII
delegation. "They believed that US will still remain open," he said.

During the meeting the officials shared the pressure the administration is
facing from the US Congress on the issue of unemployment in the country.

+++++++++++++++++++++++++++++++++++++++++++++++++++

http://www.rediff.com/money/2009/mar/12bcrisis-protectionist-measures-to-hur
t-us-economy-nasscom.htm

Protectionist measures to hurt US economy: Nasscom

BS Reporter in Mumbai | BS | March 12, 2009 | 10:23 IST


Protectionist measures such as the 'Buy America' clause and the H-1B
legislation suggested by the US government will not have any impact on
India's IT-BPO industry, says Nasscom, adding that, in fact, the measures
will hurt the US economy.

Nasscom representatives, on their recent visit to the US, met a large
cross-section of stakeholders ? the US administration, elected
representatives of the Congress, various associations, US headquartered
companies and customer companies as well.

The industry body also said that protectionist policies would only delay
the recovery of the US from the ongoing recession. Nasscom also pointed out
that with more countries affected by the slowdown, such protectionism would
trigger similar protectionist measures.

The US has been under tremendous pressure to protect local jobs as the
unemployment rate looks to breach the 10 per cent mark. Unemployment in the
US surged to 8.1 per cent in February, the highest in 25 years.

The Nasscom delegation met US Senator Chuck Grassley, apart from other
senators and Congressmen.

The delegation also expressed interest to work with Grassley on the H-1B
visa issue and ensure that while Nasscom would apprehend and stop any
fraudulent use of H-1B visas, legitimate business users would not get
affected.

In its current form the amendment to H-1B visa legislation seem to isolate
and unfairly target Indian IT companies and severely restrict the level
playing field. Contrary to popular belief of Indian companies taking
majority of H-1B visas, the Indian IT industry constituted only 11 per cent
of the total visas issued in 2008.

The H1-B visas are used for providing technically qualified talent, open
new markets, accelerate innovation and increase competitiveness.

+++++++++++++++++++++++++++++++++++++++++++++++++++

http://timesofindia.indiatimes.com/Business/New-H1-B-visa-norms-to-isolate-I
ndia/articleshow/4251475.cms

'New H1-B visa norms likely to isolate Indian IT'
11 Mar 2009, 0139 hrs IST, TNN



CHENNAI: The National Association of Software and Services Company
(Nasscom) has expressed its concern over the proposed amendment to the H1B
visa legislation and said the amendment is likely to isolate and unfairly
target Indian IT companies, restricting the level-playing field.

A statement from Nasscom said on Tuesday that it is 'working closely with
stakeholders and policy makers in the US Congress' and the administration
to ensure that the Indian IT industry is not disadvantaged in any manner
due to this.

A team of six officials of Nasscom recently visited the US to prevail upon
them over the visa issue and also over the proposed 'Buy America' measure
of the Obama administration.

The delegation met senator Charles Grassley, belonging to Iowa, who is
spearheading the H-1 B legislation. Nasscom would be working with him to
ensure that any fraudulent use of the H-1 B visas are apprehended and
stopped and ensure legitimate business users are not affected.

The industry body said the only 11% of the total visas issued last year was
to the Indian IT industry.

The delegation also met a large cross section of stakeholders from the US
administration, elected representatives of the Congress, various
associations, US headquartered companies and customer companies.

"Having met with various stakeholders and experts and discussed the
protectionist measures with them, Nasscom does not see the "Buy America"
clause or the discussion on removal of "tax breaks for US companies that
create jobs offshore" provisions in their current forms having any impact
on the Indian IT-BPO industry. We are confident that US will consider all
factors as they have in the stimulus bill and other proposed initiatives
for reviving the economy and employment," the statement said.

"The Indian IT-BPO industry has played a crucial role in helping US
companies tap these benefits and remains committed to being a part of the
solution to help tide over this crisis It is imperative that the US and all
countries continue to be proponents of free trade. With more countries
impacted with the slowdown, such protectionism would trigger similar
protectionist measures. The world economy will find it difficult to reverse
this trend quickly. Restricted trade affects businesses, incomes and
employment in other countries thus resulting in lower spending and
subsequently lower demand for US goods and services globally," it added.


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