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 !!!!