The late 2000 cap increase for H-1B visas -- work permits that let people come from other countries to work in the United States for a maximum of six years -- has sparked a lot of controversy. Proponents of the increase say the boost will help fill the IT employment gaps created over the last five years or so by the e-business/Internet boom. Those against the visa program argue that these jobs should go to U.S. workers, and that businesses use the visas to hire cheaper labor.

With an ailing economy dotted with daily layoffs from these "new economy" companies, the debate is heating up. U.S. workers are on the job hunt, and many are asking whether the United States should be hiring "out of towners" to fill what positions are left.

What do they say?

Like it or not -- and plenty of people don't -- America is opening its doors to meet this demand. Why did these workers leave their homes and come thousands of miles to help drive the American technology economy? What is their stance on whether the program is necessary in helping U.S. IT firms progress? ADVISOR spoke with several H1-B veterans to bring you some first-hand accounts of the program.

Brit at home by the bay

Alice Chan came to the States from England in late 1997 to work as a public relations expert. What brought her across the Atlantic? Specializing in marketing campaigns for emerging markets (particularly IT startup firms), Alice wanted to be in the middle of it (at least from a high-tech perspective). In 1997, that meant Silicon Valley.

"It felt like in order to be part of this Internet craze/Internet revolution, nothing could be more exciting than being in the heart of where it was all happening, which was Silicon Valley," she says.

Her experience is a good example of how the typical H-1B applications works. Having decided that she wanted to come, she met with a couple of companies. One of them -- InterActive Public Relations -- offered her a job, and then sponsored her visa. Chan is now the vice president of the company.

What does she have to say about the H-1B program? She explains that she has never encountered any sort of ill will regarding her nationality. In fact, interest in her background seems to override her unique status in the American economy. "I only got welcomes, curiosity about backgrounds, nice comments about accents," Chan reports.

So does she believe her being plucked from Great Britain was based on a real need for U.S. corporations to look beyond American borders? "I think it was an absolute necessity, as a manager working in an IT-related business and working with a number of technology start-up companies over the last three years," she argues. "There was zero capacity to get these workers from the domestic market. I'm grateful for the opportunity that gave me."

"Fresh ideas, fresh attitude"

Anya Singleton came to America more out of necessity than curiosity. In September of 1998, she left Russia to work on a J-1 visa, which is similar to an H-1B, but more temporary.

Anya now works as a database programmer for BookMaster, a company that develops distribution and financial software targeted specifically at publishers and book distributors The circumstances that brought her the States are perhaps a product of the Internet era -- interest in workers and expertise from another country.

"Initially, with the J-1, [my boss] didn't bring me in because I had all the experience," she says. "I think he was just interested in having fresh people coming in from other countries -- fresh ideas, fresh attitude."

Indeed, her company has customers around the globe, and needs employees with a global mindset. However, like any other employee, she has become an asset to her company as she has developed professionally and her technical knowledge has grown. She notes that the investment the company has put in her has been a strong factor in her staying (in addition to the American she married in the summer of 2000). "My company is very good to me. They send me to a seminar if I don't understand something."

Singleton explains that for a person such as herself -- educated and career-oriented -- Russia just didn't provide the opportunities. She took advantage of a need for programmers, and hasn't regretted it.

The student who stayed

Chan and Singleton offered the following advice to anyone considering working in America on a work visa: Be patient -- it's a long, bureaucracy-filled process.

Cedric Vanhaver heeds that advice. A Belgium native, Vanhaver works with Chan at InterActive Public Relations, where he went to work after having been in the States for some time as a college student. The journalism major attended college in Oregon on an F-1 study visa, and is now looking to continue working with InterActive on a non-H-1B visa.

While both he and Chan note many cultural differences requiring some adjustments on their part (particularly on the language side of things), he is excited about being here. He represents what is most likely the typical attitude of foreign workers: openness and excitement about joining a relatively strong economy. Vanhaver comes across not as a foreigner on the prowl for American job slots, but as an intensely curious man looking to contribute his talents. Of his time working in America, he simply notes, "InterActive has been very good to me."

Laying down the law

Judith Bloomberg knows H-1B. An attorney who's been working in immigration law since 1983, she handles a lot of cases for foreign workers. ADVISOR spoke with her to gain some insight into the legal aspects of work immigration and to get some opinions from someone who knows the program inside and out, including common criticisms and problems.

Bloomberg has watched the visa evolve from a fairly pro forma application before the emergence of high-tech/IT businesses and workers, to an in-demand ticket to America's technology companies. In fact, she says, the cap was never really reached before the IT boom. However, the whole process has become highly political, with folks on the right arguing that companies are bringing in cheap labor from places such as India and undercutting the labor market. Bloomberg believes, though, that the process guards against companies taking advantage of foreign workers.

"The majority of people that I do work for are not undercutting the labor market," she says. "The way I make that determination is a labor attestation form, called a labor condition attestation form (LCA). Whenever I take on a case, I am extremely careful with my clients that they have a basis, some kind of legitimate salary survey, for these wages, and that they're going to pay these wages."

Bloomberg goes on to explain that companies hiring H-1B workers have to prove that they're not H-1B-dependent. That classification has to do with how many employees a company has, how many work on an H-1B, how many have graduate degrees, and how many are paid above US$60,000 a year. If an employer has a certain number of H-1B employees -- with bachelor's degrees -- and is paying below US$60,000 a year, it is considered H-1B-dependent. If the government determines that you are H-1B-dependent, you are required to show that you did a fair recruitment of the market place and tried to find a qualified U.S. citizen resident for the position.

Does such strict adherence to the law apply across the H-1B program? "Most of my colleagues say the majority of their employers are not considered H-1B-dependent," she says, "because they either have people with master's degrees or they're paying above US$50,000."

Above all, Bloomberg works to shield the program from the negative image it draws from some people, and help IT companies meet what she says is a very real need. She concedes that while a company could take advantage of cheaper foreign labor, the guidelines of the application process prevent such problems.

No easy answer

ADVISOR asked all of the interviewees whether they thought the program was necessary, and whether it was fair.

Chan, who assists and analyzes IT companies and the industry at large every day, thinks so. Companies need people in these positions, she says. And as for the downturn in the last several months, she notes that the foreign workers don't get any special treatment. "I know people on H-1B visas who along with other people have had their jobs cut," she explains.

Bloomberg says she perceives a remaining shortage in the IT market still, despite what she calls a "little downturn" in the economy. She gets lots of calls from employers looking for qualified programmers or software engineers. What's the problem? She says that colleges are not turning out kids with those degrees -- even with the emphasis now on job availability. She adds that the problem is worldwide.

"That's why we are now competing with Germany, for example, who is also seeking to bring in Indians who have degrees in software engineering," Bloomberg says. "France is doing it, and England is doing it. In other words, we are now competing worldwide. This is not some isolated instance of the U.S. trying to bring in foreign workers who are able to do IT stuff."

Singleton points out that both sides have legitimate claims. It's a business's right to bring in labor from other countries, she argues, even if it's cheaper. On the other hand, she understands why some Americans are concerned, and agrees on limiting the number of visas. In the end, she says, there won't be a simple answer.

Numbers on their side?

According to the U.S. Immigration and Naturalization Service (INS), the 16,000 H-1B applications submitted in February 2001 were actually down from 30,000 in January and 53,000 in December (although the latter number is thought to have been inflated by companies hurrying to beat a fee increase that took effect during the middle of the month). The stats for February indicate that the applications for that month numbered just half those for February 2000.

So does that mean that America is producing all the IT talent it needs domestically? Is the demand for IT workers decreasing because the economy, or at least confidence in it, is taking a dive? Probably not.

The Information Technology Association of America (ITAA) reported recently that U.S. IT workers numbered 10.4 million. The association predicts demand for new workers in 2001 will near 900,000. While this projected number is down by 44 percent from the worker demand of 1.6 million new workers in 2000, the ITAA reports that the talent gap remains large. In fact, hiring managers still foresee a shortfall of 425,000 skilled workers in 2001.

Because demand is still high, ITAA suggests that raising the annual H-1B cap to 195,000 was wise. Furthermore, says ITAA President Harris Miller, the fact that H-1B applications aren't pushing the limits of the quota proves that companies are using the program to fill a real need and not just to hire cheap labor.

In fact, the outlook for IT workers in general is still good, says Miller. "Skilled technology workers -- still a highly desirable commodity to IT and non-IT companies -- are facing more cautious hiring practices than the 'irrational exuberance' that some say described 2000," he explains. "However, our 2001 numbers suggest that hiring has by no means halted for IT workers; rather, demand still far exceeds supply in this market."

A new economy, a common accent

Perhaps participating in the H-1B program -- coming from one country and culture to engage in another -- instills in you a philosophy that transcends "my country, my people" thinking. Singleton and Chan certainly seem to look beyond how the program has benefited them personally to adopt a larger perspective.

Chan notes, "You hear much of us working and living and breathing in a global economy. As technology narrows the boundaries across the world and makes people more accessible wherever they are, it seems natural that people's place of employment can keep pace with that. If there are opportunities that can support workers from different places around the world, then that's all for the good. We pay our taxes to the U.S., and we definitely contribute to the economy."

Singleton adds, "America is such a multi-ethnic country. It seems almost natural to bring more workers from other places -- it's an ongoing process. Everybody speaks with a certain amount of accent."