The Flow and the Stock in the H-1B Field — a Disturbing Development
There is a deeply disturbing development in the H-1B field, one that has been all but hidden for years. And since this is a U.S. immigration policy story it is, as one might expect, convoluted.
The news relates to the concepts of stocks and flows, previously discussed in connection with the illegal alien population .In this case, a single corporation — without an ounce of participation by the government or any notice by the media — managed to increase the national stock of H-1B workers by 7,000 workers in a single year, and did so without tapping into the substantial inward flows of new H-1B aliens.
That firm is Cognizant Technology Solutions, one of the major Indian outsourcing (or staffing) companies. These firms essentially rent tech professionals to other corporations. Back in FY 2015 Cognizant figured out something that, thankfully, its major rivals so far have not.
The breakthrough or disaster (depending on your point of view) is that Cognizant found a way to expand a corporation's H-1B workforce (the stock) that was totally unrelated to the annual issuance (flows) of H-1B approvals.
These initial issuances come in three bunches, two of which are open to Cognizant and other corporations and are covered by ceilings of 20,000 for those potential workers with U.S. graduate degrees and 65,000 for other college grads. In addition to these set-asides, an unlimited number of other H-1Bs are awarded annually to universities, entities linked to universities, and to other non-profit and governmental employers.
Cognizant exploited a loophole in the existing H-1B program. The rule is that the initial visa is for three years, and that it can easily (if not automatically) be extended for another three years. Beyond that, visa extensions are available only to corporations that are in the process of seeking, or have succeeded in obtaining, green card approval for the H-1B worker involved.
https://cis.org/North/Flow-and-Stock-H1B-Field-Disturbing-Development