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One more life and Nasscom sleeps..

I hear that one more life was stubbed because of carelessness of yet another BPO/IT company. This time it is neighbour of Sikkapatte Important Company. A young woman was raped and murdered by transporter for the BPO Wipro-Spectramind in Pune.

When the attrition sky rocketed– Sick people at Nasscom asked the employees to shell out money so that a national skill registry database could be created!!!. Ostensible reason was to provide protection for genuine candidates from people with bloated resumes.. But real reason was to hold the employees at ransom by colluding with all the employers and holding employee record on lock so that murthy type angadis could continue their relentless exploitation.

Where is Nasscom now? Why are they not maintaining a National Kill Registry? In US it is customary for companies to do a background check on all the service staff. Why are IT companies not doing it for service staff? Why are they not starting a National Registry for its staff and vendors akin to National Skill Registry.. Is not Nasscom exposed on its doublespeak.

Vista Installation in two minutes!!

The video below gives instructions on how to install vista real fast….

Nationalizm and genes — Nay.!!!

Sunaad is blogging here that Nationalizm seems to be in the gene.

I disagree. Nationalizm is an acquired characteristic and hence it can not be inherited. The concept of Nationalizm etc are passed by parents to child in the formative years and that way every person is a prisoner to his father.

In case of India, biggest change what we generation have to do to undo years of cultural programming of giving respect to anything that is ancient is to start dismantling the notions about conformity. If we feel that Gandhi family has screwed up this country let us raise our voice unlike what our parents did. If we feel that godmen need to be brought to book, let us stop visiting them unlike our parents did. Let us not be afraid to ask questions. Let us be scientific tempered.

Indians are not programmed to genuflect in front of whites. We are programmed to genuflect in front of anyone who has had the fortune of taking us for ride.

We glorify mughals and forget their misdeed
We glorify manu and forget the racial overtones in Manusmrithi
We glorify every king queen and slave who screwed our ancestors.
We glorify every custom,scarecrow, charm from yesteryears.

Glorification of British is a symptom of this larger malaise and not cause of our low esteem.
Only way to acheive self esteem is through scientific temper. Coz, Scientific inquiry improve the IQ of individual and then of the society. Our polity should strike where there is biggest bang for the buck.

Make every child of India think with scientific temper, reject the old value system that should be real vision 2020!!

More on Labor Arbitrage

Hi,

After the results of the data analysis on DOL data, many of you have evinced interest in details. Yesterday’s image did not have clear text subtitles and my sources in USA are too busy minting money for themselves than create a nice graphic to illustrate their case.

Anyway , I am posting three tables that provide details.

The first table below shows the biggest H1B users in descending order. Only those companies who applied for atleast 1000 visas last year have been considered.

You can see all the usual Indian outsourcers topping the list

Companies arranged in the descending order of number of H1Bs they applied for in 2006
Name of Company	No of H1Bs applied
INFOSYS TECHNOLOGIES LIMITED	22567
WIPRO LIMITED	19450
Cognizant Technology Solutions	10435
MPHASIS CORPORATION	9908
Patni Computer Systems, Inc.	7775
HCL AMERICA, INC.	7590
TATA CONSULTANCY SERVICES LIMITED	7528
Accenture LLP	7253
Satyam Computer Services LTD.	5497
PricewaterhouseCoopers LLP	4831
JSMN International, Inc	4793
Deloitte & Touche LLP	4698
Microsoft Corporation	4471
New York City Public Schools	3989
iGate Mastech, Inc.	3133
Covansys Corporation	3031
Tech Mahindra (Americas), Inc.	2959
Cisco Systems Inc	2461
Houston Independent School District	2171
Patni Computer Systems	1997
Deloitte Consulting LLP	1973
PricewaterhouseCoopers, LLP	1876
Satyam Computer Services, Ltd.	1738
KPMG LLP	1730
KITTY KELLY SHOE CORP.	1722
Deloitte Tax LLP	1696
Ernst & Young LLP	1475
LARSEN & TOUBRO INFOTECH LIMITED	1376
ORACLE USA, INC.	1361
Intel Corporation	1269
Rapidigm, Inc	1266
NIIT Technologies Inc.	1237
Liberty HomeCare Group II, LLC	1120
IGATE GLOBAL SOLUTIONS , AN IGATE CORP.	1100
Marlabs, Inc	1050

The above data is also available as jpeg
The next table is the average salary offered by these companies as per the H1B petition they filed. As you may know many unscrupulous companies inflate the salary on DOL data. But for the moment we would assume these companies atleast pay what they promise on H1B papers. The salaries for above employers has been arranged in ascending order to figure out who pays below the market. Now ignore the top three. They are not IT companies. Houston Independent School District and New York Citi public schools are importing teachers and Liberty Home care group is importing nurses. These salaries are commensurate with market salaries in their respective groups. Then check up who comes up. Virtually all the Indian outsourcers fight out to top this list. So much of value being delivered!!!!

NAME OF COMPANY	Annual Wages
Houston Independent School District	38553.7
New York City Public Schools	42742.47
Liberty HomeCare Group II, LLC	50000
iGate Mastech, Inc.	50194.47
HCL AMERICA, INC.	51179.37
MPHASIS CORPORATION	53538.38
LARSEN & TOUBRO INFOTECH LIMITED	53594.07
JSMN International, Inc	53732.38
Deloitte Tax LLP	54771.3
Satyam Computer Services LTD.	54798.34
Patni Computer Systems, Inc.	54875
Patni Computer Systems	55350.74
INFOSYS TECHNOLOGIES LIMITED	55532.53
WIPRO LIMITED	57254.93
Tech Mahindra (Americas), Inc.	57693.08
Covansys Corporation	59089.68
Deloitte & Touche LLP	59472.88
Satyam Computer Services, Ltd.	59829.54
Cognizant Technology Solutions	60796.7
Marlabs, Inc	61499.05
TATA CONSULTANCY SERVICES LIMITED	62340.36
NIIT Technologies Inc.	62364.56
KPMG LLP	65049.14
Ernst & Young LLP	65296.56
PricewaterhouseCoopers, LLP	65463.56
IGATE GLOBAL SOLUTIONS , AN IGATE CORP.	65953.44
PricewaterhouseCoopers LLP	66341.79
Rapidigm, Inc	69284.66
Accenture LLP	69529.73
Deloitte Consulting LLP	75272.69
KITTY KELLY SHOE CORP.	75500
ORACLE USA, INC.	76483.27
Intel Corporation	78528.19
Microsoft Corporation	87274.35
Cisco Systems Inc	88161.17

The above table is also available as image here

Based on above two tables it is possible to come out with a labor arbitrage income for each of the companies and this is what the table looks like.

Labour arbitrage enjoyed by companies because of H1B
NAME	Labor Arbitrage
INFOSYS TECHNOLOGIES LIMITED	736330509.65
WIPRO LIMITED	601126491.81
MPHASIS CORPORATION	343042667.71
Cognizant Technology Solutions	285548320.96
HCL AMERICA, INC.	280691919.14
Patni Computer Systems, Inc.	258800044.37
TATA CONSULTANCY SERVICES LIMITED	194379082.21
Satyam Computer Services LTD.	183395479.19
JSMN International, Inc	165017197.64
Accenture LLP	135133901.4
Deloitte & Touche LLP	134777616.98
iGate Mastech, Inc.	118949676.06
PricewaterhouseCoopers LLP	105409445.72
Tech Mahindra (Americas), Inc.	90155096.7
Covansys Corporation	88115704.89
Patni Computer Systems	65522437.75
Deloitte Tax LLP	56629229.85
Satyam Computer Services, Ltd.	49240373.52
LARSEN & TOUBRO INFOTECH LIMITED	47564331.85
PricewaterhouseCoopers, LLP	42580721.38
KPMG LLP	39983826.55
Ernst & Young LLP	33725305.13
NIIT Technologies Inc.	31910416.38
Marlabs, Inc	27995233.2
Deloitte Consulting LLP	25428983.85
IGATE GLOBAL SOLUTIONS , AN IGATE CORP.	24428511.92
Rapidigm, Inc	23897668.87
KITTY KELLY SHOE CORP.	21802542.45
ORACLE USA, INC.	15893631.28
Intel Corporation	12224257.96
Microsoft Corporation	3964988.27
Cisco Systems Inc	0

A older version of the above table (that included non IT professions such as teachers and nurses) is provided here.

I rest the case.

Picture is worth thousand words– Vikram can read this

Hi,

My friend from Seattle sent me this picture to be posted here.

Now let me explain what I understood from the picture and from the conversation I had with my friend in Seattle.

Offlate, it has become fashionable for Murthy Angadi to claim value, six sigma, SEI CMM etc etc… Idellla Sikkapatte Mamooli .

No body has conclusively proved so far how Murthy angadi operated and what value sahukarru talked about. The analysis done by Seattle Kannadiga proves to the point what is wrong.

H1B is a type of Visa allowed by US government to bring in specialized labor. Intent of H1B is to get the knowledge workers into US. H1B is a dual intent visa. Holders of H1B can then apply for immigration.

American college kids are complaining ad infinitum about H1B route being used to bring in cheaper but not qualified labor. Whenever there is hue and cry over H1B congress asks Department of Labor to tighten labor certification process used to dole out H1Bs. Department of Labor in turn peeps into its books and discovers that biggest beneficiary in terms of number of H1 petition is Redmond Angadi. Owner of Redmond Angadi then makes a trip to Washington to present his figures on H1B. Redmond Angadi typically applies for 4000 H1Bs and typically pays in excess of $80000 for each H1B. This figure is well above the market rate and hence congress feels that there is nothing wrong going on in H1B.

It was not possible to get department of labor data to sort out bad apples. But recently DOL has made the practice of putting up raw data online. You can access this raw data from here. The raw data is in .mdb format and you need to have Microsoft Access to analyse the data.

Off late Seattle Kannadiga is playing with data. Some of the interesting insights so far.

Biggest Beneficiary of H1B is not Microsoft. It is Murhty Angadi !!!!

Here is the spread sheet detailing the calculations.

As you can see Murthy Angadi applied for 22567 H1Bs last year with an average salary of around 55000 US dollars. If Murthy Angadi were to pay market salary like CISCO or Microsoft did, Murthy Angadi would have had to pay 80000 dollars in salary. So Murthy Angadi has around 25000 dollars of labor arbitrage per employee and total labor arbitrage enjoyed by Murthy Angadi when we calculated the wage differences across all the H1s for INFY the figure came to 736 million US dollars.

736 million US dollars !!!! or 2800 crores of Indian rupees for doing nothing!!!. I do not know if the figure is more than total profit of Murthy Angadi. If this figure is more than profit of Murthy Angadi there is lesson for managment types at Murthy Angadi. They can make more money if they just stick to labor arbitrage rather than on management mantras !!!!

Muthry clarifies – INFY is the H1B spoilsport

I recently got this email from a friend in Seattle.

I am reproducing the mail below.

*******************

Muthryji,

Namaskara.

After the H1B fiasco the discussion is once again on if H1B is good for America or not. H1B proponents like Bill Gates say H1B helps America attract talent. But those who are working on H1Bs always complain that they are paid slave wages and Americans who lost their job to an H1B point out that H1B is attracting slaves and not talent.

Now the H1B quota is exhausted, predictably Microsoft would make more noises in Washington on need to increase the cap on H1B. Microsoft as you know is the largest beneficiary of H1B ( Wait on this till I finish my mail)
Bill Gates routinely begs the congress to increase the H1B cap and presents to congress the data that H1Bs in Microsoft are paid significantly above market salaries. So the argument in favor of H1B cap increase would be like this. Microsoft filed largest number of H1B petitions this year and Microsoft paid salaries above the market rate. So there is no truth in the statement that H1B is exploitative.

Now it is open secret that INFY sucked blood of developers at client site and is involved in massive undercutting of wages. But how come INFY never comes up in the radar. Till recently DOL did not publish the data on H1Bs but now the data from whole year is available for any type of analysis you would like to do. You can get the 800 MB sized data file from here. There is also a web site which provides the analysis using a web hosted application. All the while I used to rely on this web application to understand the H1B dynamics. But today I decided to run some queries on the data myself and what I discovered is startling, there is a flaw in reporting. When you say Microsoft is the largest petitioner you are correct. Compared to Microsoft’s 4000 odd petitions INFY filed around 1000 petitions and hence is not significant user of H1B. That is why Murthy probably never gets called to Congress. But dig further in the data. You see that INFY typically files a single application for hundreds if not tens of programmers. Single application reduces the filing cost for INFY and also may be another strategy of INFY to stay below the radar. If you add up the number of beneficiaries for all the 1000 odd applications INFY filed the number came to .. hold your breath.. 22567 H1B .. Compare this to 4471 H1B from Microsoft.

Yes. INFY is the largest beneficiary of H1B and INFY gets never called to congress because in terms of number of petitions they are not in top 5. Another of Murthy’s tricks to cheat the system.

Muthry clarifies Murthy’s apology

After the fiasco that National Anthem would embarrass foreigners in India, Murthy tried to eat his foot again with following clarification.

Well as a clean up guy! I, muthry feel that this statement needs some clean up.

Let me take up the first statement.

We have always kept the interest of India foremost in our minds and our work speaks for itself.

Yes, Work spoke for itself. Murthy’s infy fudged tax figures and claimed that it was paying tax!!

We are a proud Indian company, with strong universal ethos of transparency, accountability and honesty.

Infy is an Indian company because of honesty, accountability.. transparency.. oh my goodness. Infy is Indian because it does not have to pay a penny in taxes in India. Had it been American he would be paying 30% of his income in taxes!!!. Murthy you are getting benefited by claiming Indianness. India is not getting a penny from your pocket. So why make it a big issue!!!

Muthry v/s Murthy – Round 1

Myth: Muthry does not pay tax where as Murthy pays tax.

So what : Since Murthy Sire pays so much tax he needs to be listened to!!

Muthry answers: My reply is in two parts.

First let me address the reasoning.

If we were to elect whoever paid highest tax we would be having a plutocracy and not democracy. This very argument is specious.

I would have stopped at this. But recently Murthy bacame bold and made statements saying that he was paying taxes!!!!. I was very happy that IT companies in India were finally paying their dues.
However my friend in Seattle divulged a secret. Indian IT companies do not pay any tax. They have liberal tax holidays. Despite this tax holiday INFY still shows around 303 crores as taxation in 2006 balance sheet. 303 crores on an income of 2724 crores!!!! Why so less when the corporate tax rate in India is above 30%!!. My friend in Seattle taught me how Murthy comes out this figure.
Murthy deputes his servants to advanced countries such as USA and Europe. e.g When his employees work in US Infosys by law is supposed to contribute to employees retirement funds through payroll and social security taxes. It is akin to paying provident fund in India. But what wiley Murthy shows this as Income tax in India!!!. Look closer to the balance sheet. In 2005 the ratio of domestic and international tax for Infy was 1: 20!!!. Murthy claims the payroll tax paid in US as Income tax!!!! Murthy paid only some 18 crore in 2005 as domestic tax and not 303 crore which is a paper figure. Murthy stop bullshitting. After all everytime you bull shit. I have to do cleaning..