An overhaul of US immigration law will close loopholes that allow outsourcing companies to pay guest workers in the US at rates below wages for equivalently-skilled Americans.
Low-cost efficiency put India's outsourcing companies at the heart of global business and created a multibillion dollar industry that for years has skated over criticism it was eliminating white collar jobs in rich nations. Now, the industry's long-held fears of a backlash are being realised in its crucial US market.Provisions in an overhaul of US immigration law will close loopholes that allow outsourcing companies, Indian and American, to pay guest workers in the US at rates often below wages for equivalently-skilled Americans. The proposed changes are in line with President Barack Obama's vows to make it tougher for American companies to replace American workers with cheaper labour abroad, either by opening factories overseas or subcontracting their work to outsourcing companies.Click here for full storyGet access to India's fastest growing financial subscriptions service Moneycontrol Pro for as little as Rs 599 for first year. Use the code "GETPRO". Moneycontrol Pro offers you all the information you need for wealth creation including actionable investment ideas, independent research and insights & analysis For more information, check out the Moneycontrol website or mobile app.