Major banks and telecommunications companies have surpassed technology giants as the leading recruiters of H-1B visa workers in recent years, reshaping the landscape of foreign talent employment in the United States.
From May 2020 to May 2024, significant players such as Citigroup, AT&T, and Capital One have emerged as top recruiters of foreign labor through staffing and outsourcing agencies, according to data analyzed by Bloomberg. This trend marks a notable shift from previous years, where technology firms in Silicon Valley dominated H-1B visa hiring.
The H-1B visa is crucial for U.S. companies requiring individuals for specialty occupations demanding theoretical or technical expertise. Fields actively engaging H-1B workers include information technology, engineering, finance, and healthcare.
Applicants must possess a job offer from a U.S. employer and hold at least a bachelor’s degree or its equivalent in their field to qualify for the visa. The initial grant is for up to three years and can be extended to a maximum of six. Each fiscal year, the U.S. government issues 65,000 H-1B visas with an additional 20,000 allotted to applicants with a U.S. master’s degree or higher.
The perpetual high demand for these visas has necessitated a lottery system. Employers are required to submit a Labor Condition Application to ensure fair wages and working conditions for their H-1B employees. This program remains critical for enabling U.S. businesses to leverage global talent and address skill shortages.
India has consistently emerged as a leading source of H-1B applicants. The country accounts for roughly 70–75% of all petitions due to its robust tech industry and close ties with U.S. technology firms. China follows as the second-largest contributor, contributing about 11–13% of applications. Other countries like Canada, South Korea, and the Philippines each represent under 1% of the total.
The global workforce distribution, particularly in IT, engineering, and healthcare, highlights how U.S. companies rely heavily on skilled professionals from these countries to meet their labor demands.
Bloomberg’s report reveals that Citigroup Inc. added over 3,000 new H-1B workers during this four-year span—surpassing prominent tech companies like Nvidia, Oracle, and Qualcomm. However, most of these hires are not direct employees but rather contractors through third-party firms. A significant portion came via outsourcing companies like Tata Consultancy Services Ltd. (TCS), which is currently under investigation by the U.S. Equal Employment Opportunity Commission for possible discrimination against non-Indian workers.
In response to these allegations, a spokesperson for TCS stated, “Allegations that TCS engages in unlawful discrimination are meritless and misleading. TCS has a strong track record of being an equal opportunity employer in the US, embracing the highest levels of integrity and values in our operations.”
Citigroup also addressed questions about their hiring approach, saying, “We supplement our 71,000 US workers with highly skilled H-1B visa holders to address specific, timely needs. When we do so, we follow relevant laws and regulations, including anti-discrimination laws.”
Bloomberg’s analysis suggests that H-1B contractors receive significantly lower compensation than their direct counterparts. While software developers through staffing agencies reported median earnings of $94,000, those directly employed earned $142,000, even while factoring in job title, education, and experience.
The disparity in wages has drawn criticism concerning the program’s aim to recruit the highest caliber of professionals. “If the whole purpose of this program is to hire the best of the best, then why aren’t we seeing higher wages?” remarked Susan Houseman of the W.E. Upjohn Institute, after examining the findings.
Despite this critique, proponents of the H-1B program argue it addresses critical skill shortages in the U.S. workforce by bringing in unique expertise that complements the existing labor pool and maintains company competitiveness globally. They further assert that there are built-in protections to guard against wage abuse, though acknowledging that enforcement poses challenges.
The redirection of H-1B workers from tech to telecom and banking indicates that skilled foreign professionals are increasingly finding career opportunities outside of traditional technology firms.
According to Bloomberg.
Source: Original article