Outrage as US senator labels Indian IT firms Chop Shops?

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A US senator has offended the Indian IT sector by referring to them as "Chop Shops." Unfortunate choice of words as it refers to an illegal business.

Charles Schumer made the remark during discussions on the Border Security Bill in relation to the idea to raise visa costs and pass on the money to improving boarder security. He singled Infosys out for criticism.

A Chop Shop is, according to the Encarta Concise English Dictionary is "a workshop or garage where stolen vehicles are disguised or broken up for spare parts."

See more on this video about the outrage:

 

The US recently increased the charges for visas and there is a growing feeling that Indian IT companies are taking US jobs.

He is reported to have said: "''...the emergency border funds will be paid for by assessing fees on foreign companies known as chop shops that out-source good, high-paying American Technology jobs to lower wage, temporary immigrant workers from other countries. These are companies such as Infosys.''

Infosys responded with this statement. ''we are distressed with this statement. Infosys is a good corporate citizen, pays its taxes and is law abiding.

''Our strategy is to create jobs in every jurisdiction that we work in. We provide a world class work environment for all our employees in every country and we add significant value to our clients, helping them to compete effectively in the global marketplace.

''Today we have around 1,300 citizens and permanent residents working for Infosys in the US and have been actively working towards hiring over 1,000 additional people over the past few quarters. The visa fees are discriminatory and do not help create an open competitive market.''

The US senate has voted to increase charges for employer sponsored skilled intra company transfer visas for companies with more than 50% non US workers in the US. They will target Indian outsourcers.

More on that story in the New York Times


 

 

6 Comments

Senator Schumer is chairman of the senate immigration subcommittee and quite pro immigration e.g. amnesty for illegal immigrants, giving foreign students who get an advanced degree in the US automatic citizenship and making it easier for highly skilled foreigners to come to the US and get citizenship.

What he and all 100 US senators unanimously oppose are companies that set up in the US and import most of their workforce rather than employing Americans.

The rules will not just hit Indian companies. It will also hit US ones like Cognizant.

Also India has much stricter rules on companies employing foreigners.

right from ford, general motors to amway, walmart have set up shops in india...and US was the prime driver of globalization....do not worry about this illuson of IT jobs going out mr.Senator...rather fix the trade deficit with china!

But would India be happy with foreign companies if they they brought in their own workforce instead of employing local workers.

Last year the Indian Ambassador to China attacked Chinese firms for doing just that. Ambassador Jaishankar said:
“I have personal experience in working with many of India’s other major economic partners. I cannot recall their investments and projects requiring such large manpower support from home”

India cracked down on visas and over 20,000 Chinese workers had to leave India. India introduced a 20 foreigner limit per company. Imagine India's response if the US had done this.

Dear ArgieBee
Case you are referring was involving Chinese workers coming to power plants made in china on a visitors Visa. If they come to India and work, they need work permit. This is same as US or any other country in the world. India raised this issue as Chinese companies were not bringing these people with appropriate visa.

Prior to the large influx if chinese workers, India allowed foreign companies to send their staff to work for up to 6 months on business visas.

What do you think of the limit of 20 foreigners on employment visas per company?

It seems hypocritical to complain about a UK cap when India has one.

Prior to the large influx of chinese workers, India allowed foreign companies to send their staff to work for up to 6 months on business visas.

What do you think of the limit of 20 foreigners on employment visas per company?

It seems hypocritical to complain about a UK cap when India has one.

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About this Entry

This page contains a single entry by Karl Flinders published on August 11, 2010 1:57 PM.

Cognizant: When is an Indian IT supplier not Indian? was the previous entry in this blog.

Will the strong results of UK banks delay IT outsourcing projects? is the next entry in this blog.

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