IT Reshoring News

June 07, 2013

Bay Area IT Firm Calls for Accountability on Signatories Lobbying for More H1B Visas

PlanetMagpie has called tech giants to account for their support of increasing H1B visas instead of hiring U.S. tech workers. They have sent a letter to 100+ organizations asking them to support Reshoring their IT instead.
A San Francisco Bay Area IT firm has taken a stand against major tech companies importing skilled workers from overseas.

PlanetMagpie, a Fremont, CA-based IT Consulting agency, has sent letters to the 100+ members of, who petitioned the Obama Administration to increase the number of H1B visas available to American businesses.

In other words, to themselves.

"The member companies literally control the world's information superhighway," said Doreyne Douglas, PlanetMagpie Vice President. "Google. Yahoo. Facebook. eBay. It's alarming that they're seeking more guest workers for tech jobs, when studies show that we have STEM talent available right here."

Immigration Reform Could Increase H1B Visas Available by 60% or More

Recent immigration legislation calls for a 60% increase in H1B visas. More H1Bs means more tech workers can be brought to the U.S. for positions in STEM (Science, Technology, Engineering and Math).

H1B guest workers don’t necessarily displace local workers. But displacement happens frequently – it’s often cheaper to hire guest workers, and regulations aren’t the same.

After a decade of offshoring and using H1Bs for tech labor, the U.S. faces a serious problem maintaining its own IT workforce, and in protecting its infrastructure from cyber-attack.

Worse, an Economic Policy Institute study says half of U.S. STEM graduates can't find STEM jobs. They study to join the U.S. workforce in a high-skill role, but have to work in an entirely different field when they can’t find tech jobs.

No surprise that TechNet's push has drawn fire from critics, due to its inherent self-interest.

Sending Letters to Big Tech, Against More H1Bs, in Favor of Reshoring

"Reshoring" is the practice of U.S. companies moving operations such as manufacturing and IT back to the U.S. from overseas.

Reshoring efforts are already underway in manufacturing. They are starting in IT as well, due to security risks with overseas firms and rising costs offshore.

PlanetMagpie decided to take a stand. "Given our country’s precarious financial situation, and the issues offshoring brings – security, IP theft, rising costs – it no longer makes sense to offshore. Large companies who offshore need to stand back and look at what offshoring has done to our country. We sent the letters in hopes of finding a corporation with a conscience."

PlanetMagpie sent letters to all 100+ signatories, urging them to drop support for more H1Bs, and to support Reshoring by hiring from the U.S. STEM talent pool. They included their White Paper on Reshoring IT, showing how Reshoring improves the economy, strengthens our national IT infrastructure, and even remains cost-effective.

"If the U.S. concentrates on rebuilding its IT workforce, it could do so in 5-10 years. If there was ever a time to put country first, this is it."

A copy of the H1B letter (with signatories' names) in PDF.

A sample letter from PlanetMagpie responding to the H1B letter, in PDF.

Contact PlanetMagpie IT Consulting for comment.

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