Types of H1B Visa Employers

There are many different types of employers in the USA who are looking for the IT talent. And there are many cash cows of IT who would be willing to work and sacrifice important time of their life without knowing the reality of the kind of employer they are going to work for. Whether you are already working in the USA on a work visa or planning to come to the USA, it is very important that you understand the types of employers.

Consulting Employers ( Also known as Desi Employers)

These employers are small-to-medium scale employers, and the company is mostly owned by a person of an Indian or Asian origin. They do not have any in-house software development work to do, but they hire the overseas workers (mostly from India), and sell their services (the expertise) to other American employers in the USA who needs it.Desi Employer The question may arise in your mind Why that other employer (the American employer) wouldn’t do the same thing? First of all, there is a lot of paper work involved in getting the overseas worker; secondly, for American employer it would be an adventure of chartering completely unknown territory. So no American employer is willing to take such a risk… Still don’t get it? Read the example below.

The better analogy would be that if your wife is pregnant, you don’t go to medical school to learn about gynecology because you know that it is a hassle; instead, you go and have your wife checked by gynecologist to address the gynecological issues. Similarly, when American employers need some expertise on their IT project, they rely on hiring a temporary manpower to fill in that expertise. When an employee is working for a consulting company, the employee is not physically working at the company, instead, employee works at the client side.

For example, Nishit is working for a company called Dhokha Concepts, which means that Dhokha Concepts sponsored the Nishit’s H1B visa. Dhokha Concepts sold the Nishit’s IT expertise to the company called HenWorth; in this case, HenWorth is known as the client of Dhokha Concepts. Nishit is not working physically at the company (the Dhokha Concepts); instead, Nishit works at the client side (at HenWorth).  Since, Nishit is not a full-time employee, he is also known as the contractor /consultant/temporary worker at the client side.

Man in Middle or Middle Man

It is not a type of employer; But a major part of the consulting food chain. A majority of consulting companies do not have a direct relationship with the respective client. So the consulting contract passes through the layers in between. Such a layer is known as "man in middle: or "middle man". Sometime there are many layers between the end employer and the client. Let us discuss it through an example.

Jet One (the American employer) has an urgent requirement for Data Warehouse expert for their IT project. This IT project is expected to last six months. Jet One is a big company, and they have the preferred IT vendor known as DataCorp Consulting. Here, the preferred IT vendor means that whenever there is any temporary manpower requirement, Jet One will ask DataCorp Consulting.

In the case of Data Warehouse expert requirement at Jet One, DataCorp Consulting does not have a Data Warehouse expert waiting for the next assignment, so DataCorp Consulting publishes this job on monster.com and many other job sites. DataCorp Consulting is now flooded with countless resumes and it comes across the Nishit’s resume. They like Nishit’s resume, so Data Consulting requests Dhokha Concepts that they would like to interview Nishit. Finally, after multiple rounds of interview, Jet One confirms to buy the Nishit’s IT consulting services for six months.  Hence, in this entire scenario DataCorp Consulting acts as a company in middle, if Nishit’s salary at the client side is $75 per hour, then Data Consulting keeps $10 ( their profit) out of it, and pays $65 per hour to Dhokha Concepts ( the end employer) .The role of a middle manAny consulting company would hate any layers in between because these layers just eat up their profit.  When there is one or more layers in between the client and the  employer (in this case Dhokha Concepts), the employer  would usually complain to their H1B employee that we cannot raise your salary, benefits etc.. because there are many layers in between.  There is a way to get around, for details, read the salary negotiation techniques.

Direct Employers

These are the big time employers like IBM, Oracle, Microsoft, Google, eBay, HP etc.Usually they do not sell your services to other, you are their employee . These employers are really good at offering benefits.

The Comparison between the Consulting Employer  and the Direct Employer.

Consulting Employer
Direct Employer
May ask the H1b employer to pay the visa fees, lawyer fees etc. The consulting employer is the one who sponsored the visa of H1B employee.
All H1B related expenses ( including green card , if filed) are fully paid by the employer. The direct employer is the H1B visa sponsor of the employee.
You are working at a client side from one location to another location.
You are working for this direct employer at one place most of the time.
Your IT services are sold to other. And that’s how consulting employer makes the money. Read this article for more information. In short, if you are working at brothels or with the consulting employer , the underlying business concept remains the same !
Your services are directly utilized by employer.
Benefits are inferior, especially if consulting company is small.
Benefits are superior, especially if company is very large such as Google, Microsoft etc.
You work 3 years or 5 years, the benefit remains almost the same. Most of the time, the job designation also remains the same.
Benefit increases with your number of years with this company such as paid leaves etc. Job designation gets superior as you gain more insight and work for the same company.
You are placed from one place to other place. Such placement could be in a same city or different city. And relocation cost could be none to minimal. Read this article Relocation – Are you saving the money or losing it ? .
Mostly, you work at one location for many years. If company relocates you, you are paid 100% of the relocation cost most of the time.
The reimbursement cost for acquiring new skills or attending the IT related workshop is none to minimal.
The training that would add a value to your existing work profile is fully paid.
Tuition fee ( education fee) assistance to study part time is mostly denied and even studying further is highly discouraged.
Tuition Fee ( education Fee) assistance is paid to attend the part time MBA,MS etc. most of the time.
If you leave the company while green card filed by your consulting employer is in progress , you may be asked to reimburse back the cost associated with the green card.
If employer says that they will process the green card they will do it , and of course at employer’s cost regardless of your ( the employee’s) tenure with the company.
Provides a safe haven during the bench, meaning that you will not be paid a single dime but the consulting company will not terminate your H1B easily. Most of the Desi IT consultants loves this feature.
If you are laid off, your employment ends, just pack your bags and leave. However, there would be adequate warning for you prior to lay off, somehow many employees ( especially those on H1B visa) tend to ignore it and then blame the American employer for bringing the employee in this situation !
With many consulting employers, salary raise is a sophisticated begging exercise even though you have been a cash cow for them for years.
Salary is top notch and time to time employee is paid bonus as well.
Your voice is heard only if you are on a high profile project bringing the better hourly pay. The goal is to gain maximum benefit no matter what.
Your voice is heard only when you are really contributing to the work. The goal is to get maximum contribution of the work towards the project that you are working , while providing you necessary infrastructure that would support the goal.
In the USA, employment should be at will. However, time to time , with Desi Employer, the employment at employer’s will ! Employer applies all scary tactics when you try to leave this employer and join the American employer or their competitor. If the competitor or employer that you are about to join is local, then the situation gets really worse.
Employment is at will meaning that either of the party can terminate the employment at any time. No scary tactics involved.
Bottom line is that consultant is a cash cow for this employer. And employer is the one who gets benefits at the end.
Bottom line is that you are a part of the company, and if company does well, it pays you good.An employer which would at least try to be a good employer.
Bottom line is that consultant is a cash cow for this employer. And employer is the one who benefits in the end.
Bottom line is that you are a part of the company, and if company does well, it pays you good. An employer would at least try to be a good employer.
For Example Dhokha Concepts ( used throughout on this site) . Sorry, we cannot name a particular company here. It does not mean that such company does not exist , and Visa Experience team is just dreaming. In fact, share this article with friends and they might say that this one pretty much explains my consulting company ( desi company ) !.
Mostly all of the fortune 500 companies.
Also known as Desi Employer, Body Shopper ! Or a mosquito which will carry dengue virus and will bite you again and again until you walk away from him!
Also known as American employer!
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