I saw this in a headhunter website:

US Abandoning H1B Visas?
Friday, 01 May 2009 00:00 h1bvisas

It looks like the United States is on the way to abandon H1B Visas. As a matter of fact, most petitions for New H1Bs and Extensions are being denied. I guess the policy is to deny them rather than officially close the "H1B Visa Category"

At this denial rate, most H1B workers applying for an Extension will loose Status and have to go back to their Home Countries (forget about new aspirants)

Google filed 300 H1Bs last year and 90 of them were denied! -http://www.nytimes.com/2009/04/12/business/12immig.html?_r=1&pagewanted=2

When H1Bs are denied for Large Corporations, what about small Consulting Companies?

These days, in order to get an Approval, USCIS needs a Letter from a "FUTURE" Client confirming services for a new H1B and/or H1B extension. It is not sufficient even if the beneficiary has been on Company's Payroll for Years - It's the Law - CFR..Something..

In most instances the biggest problem for H1B Sponsoring Companies is sub-contracting. Unfortunately, H1B Sponsoring Companies do not provide services directly to the Client; services are provided (routed) through a third party company or a "Preferred Vendor" (Also known as "Tier1 Vendor" or "Preferred Supplier" ). When these companies hire IT Consultants, they very well know that they are working with H1B Visa holders. In most instances, they do not cooperate if there is a request from the USCIS for a letter and supporting documentation confirming Services. These so called Preferred Vendors make anywhere between $15.00 to $20.00/Hr for simply placing a candidate ($30,000.00 to 40,000.00/year)

We can not blame the actual Client and/or end client, since they hire Contractors to avoid Administrative hassles.

If anyone has noticed/tracked the H1B visas, more H1B Visas are being denied since January 2009 - I think the United States is under a strong impression that, throwing H1B Workers out of the Country will provide more Jobs to US Workers. This is absurd, and they should do more valuable research into H1B Visas and the contribution of H1B Workers to the Economy. Most of the H1B workers in the United States have property, children going to school and lot of other commitments - How can they just leave the country?

We do not know how many "Technically Qualified" US Workers can actually replace the H1B Workers, while trotting on short term assignments.

As opposed to Employment based Green Card (I-140) Applications, it is not sufficient if a Consulting Company has the "Ability to Pay" the H1B holder. The law requires that there is a “Specialty Occupation" Job available for the beneficiary.

I am sure most of the H1B Sponsoring Companies received this kind of an RFE (Request for Evidence) from the USCIS - If you are a Consulting Company, please post comments and let our readers know about your situation. Thanks!

"Will the beneficiary work at a Client Site or an In-house Project"

If the beneficiary will work at a Client Site, you must provide:

1) An original letter from the Actual/End/Ultimate Client Confirming Services.
2) Contract with the third party and their contract with the Client ( Why will they share the contracts, aren't they confidential?)
3) Itinerary of Services.

If the beneficiary will work on an In-House Project , please provide:

1) Detailed Description of the Project
2) Market Analysis
3) Contracts with Clients for Selling the product (When you have not developed the product, how will you get one!)
4) Proof of Sale of the Product (If you sent this, they would deny stating that, no more development as the product is already sold)
5) US Patents or Trade Marks
6) Brochures, Ads, Promotional Material
7) Where is the funding coming from? (Bank - Acceptable Yes/No?)

Can you provide such documentation?

I know a Consulting Company, which has a Genuine Project and working towards a Product that they plan to sell. USCIS denied an H1B Stating that your Product is not viable..How do they know it is not viable?

Now, Look at the crazy Social Networking Sites with Millions of Members and crazy concepts like..

Swallow me..

Follow me..

Where the hell are you?

What the heck are you doing?

What's up?

When these Social Networking websites can flourish, why not a product from a Consulting Company which has Technical Resources to develop is not viable?

I strongly feel that abandoning H1B workers is not the solution, it is better to retain qualified H1B workers who can add value to Organizations and the Economy. On the other hand, laws should require (enforce) consulting Companies or Agents to guarantee wages to H1B workers irrespective of any Client Assignments across the Country and take serious action on Companies, if they don't comply.

Last but not the least - What about F1 Students? They spend a fortune to come to the United States to study and live the 'American Dream" - Not all of them can find DIRECT CLIENT Jobs to get sponsored for H1B Visas. F1 Students with IT background approach IT Consulting Companies for Professional Training and possible H1B Sponsorship. These Companies professionally train them and produce them in the Market as a finished Product.. How will they employ them if the H1Bs are denied?

I guess aspirants will choose another destination for higher studies if this continues..

The funniest thing about F1 visas: When you apply for an F1 visa, you must provide proof that you will return to your home country after completing your studies. But, you are eligible to apply for an H1B, Green card and would never have to return home.

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its just a cut and paste and not my sentiments