Controversy was recently courted as Southern California Edison (SCE) prepares to cut their own staff while looking to meet their staffing needs with offshore employees skilled in the field of “IT” or Informational Technology. This has been the second major utility company in the United States to take this path towards providing services to its consumers while holding current rates at consistent levels. SCE does not disclose the exact numbers of expected lay-offs, but the LA Times reports that it is in the hundreds.  Utility companies tell their consumers that these moves are necessary as a hedge against inflation and to keep their services at rates that their customers can easily afford. Critics claim that the use of foreign workers is the first step to using an entirely foreign workforce and promoting large scale unemployment amongst American citizens. Often this has been seen as a conflict between national and international workers for the same jobs, salaries and careers.

It has been noted that this State of California utility company, much like other corporations that hire foreign workers does so primarily when there is a shortage of national citizens that can perform these jobs well. IT workers that are brought in with H-1B Visa work permits usually are college educated and hold expertise in technical areas and studies that local employees may not be especially trained in. Once again, critics decry the fact that these employees are not hired directly. On shore contracting companies operating in the continental United States are directly hired by the utility companies. These contracted companies then serve as “middle-men” and hire a wide range of foreign workers with H-1B paperwork so that they can move to the United States. The workers then perform a variety of jobs instead of American workers who were either born in the country or have achieved American citizenship on their own.

Needless to say, the amount of visas issued in a given year is a concern for U.S workers in various fields but particularly in Information Technology. As large corporations stack the employment deck with foreign workers who put in the hours for a fraction of the pay-rate for local employees, local IT professionals are finding it more difficult to find work nationally.  They encounter rejections, endless interview processes or low –ball offers from companies and recruiting agencies looking to fill positions at a bare minimum cost for coveted skill-sets.  

Meanwhile, an H-1B worker is a worker brought in on a temporary basis with a visa allowing them to work freely in the United States. Much like a student or travel visa, it is issued for on a calendar oriented basis.  Applicants who successfully renew the visa for an extended period of time can expect to work in the United States for up to ten years.  Although U.S companies hiring these employees may pay them less than their local employees, the salaries earned by H-1B Visa workers are almost always higher than these workers would earn in their own country of origin.

Both sides can agree on several issues. When it comes to these H-1B Visa workers, their assignments are generally of a contractual nature and require them to reside in this country for a period of months to years. However it is also an accepted fact that while they are in this country, they are responsible for paying rent, utilities and all other living expenses. As residents of the United States on a permanent basis, they are also liable for taxes on any salary they have earned while living here.

Dr. Norman Matloff, a professor at the University of California, Davis and writer on political matters believes the shortage to be fiction. In his writing for the University of Michigan Journal of Law Reform, he claims that “there has been no shortage of qualified American citizens to fill American computer-related jobs, and that the data offered as evidence of American corporations needing H-1B visas to address labor shortages was erroneous. The American Immigration Lawyers Association (AILA) agrees with him and describes the situation as a crisis. Likewise, other studies from Duke, Alfred P. Sloan Foundation and Georgetown University have disputed that in some years, the number of foreign programmers and engineers imported outnumbered the number of jobs created by the industry

Recently, I asked my friend, Ray, to list those he believes are the top 10 most forward thinkers in the IT industry.  Below is the list he generated. 

Like most smart people, Ray gets his information from institutions such as the New York Times, the Wall Street Journal, the Huffington Post, Ted Talks ...  Ray is not an IT expert; he is, however, a marketer: the type that has an opinion on everything and is all too willing to share it.  Unfortunately, many of his opinions are based upon the writings/editorials of those attempting to appeal to the reading level of an 8th grader.  I suppose it could be worse.  He could be referencing Yahoo News, where important stories get priority placement such as when the voluptuous Kate Upton holds a computer close to her breasts.

Before you read further, note that missing from this list and not credited are innovators: Bill Joy, Dennis Ritchie, Linus Torvalds, Alan Turing, Edward Howard Armstrong, Peter Andreas Grunberg and Albert Fent, Gottfried Wilhelm Leibniz/Hermann Grassmann ... You know the type:  the type of individual who burns the midnight oil and rarely, if ever, guffaws over their discoveries or achievements.

Disruptive technologies such as hand-held devices, cloud computing and social media are rattling the foundations upon which traditional businesses are built. Enterprise customers have grown smarter at ensuring the latest technological trends work in their favor. Everyone is trying to zero in on their core competencies by employing commodity services to run their business.

Likewise, enterprise application vendors need to zero in on their core competencies and enhance more value to the businesses of their clientele by leveraging standards-based commodity services, such as IaaS and PaaS, provided by leaders in those segments (e.g. Amazon EC2, Google Cloud Platform etc.).

What else enterprises need to do is learn to adopt new and emerging technologies such as cloud, utility and social computing to build on them to penetrate new market avenues.

New small and medium-sized entrants into the market are constantly challenging enterprises given their ability to rapidly turnaround and address the requirements of the customers in a cost-effective manner. Additionally, these new advancements also affect how enterprises create, deploy, and manage solutions and applications. If you take the example of Force.com, for instance, you find that it’s a common war zone for enterprise application vendors to furnish SME markets with their applications, with the new entrants mostly having an edge.