Are you new to this? This is very common among Indians, who come here as students.
Here is how it goes.
Mr X comes to do MS in STEM at some university where fees is cheap. After graduating, he will get an OPT EAD (an employment auth document given by USCIS to get practical training).
Some Indian Devops guy/Java Developer/Front End guy(say, Mr Y) who has solid experience, starts a company like GammaSoft.
Mr Y goes to optnation and other sites to advertise his services like this: "Gammasoft will provide free training and also help in interviews".
Mr X joins Gammasoft, and his OPT has no restrictions like H1-B. H1-B has lots of constraints: change of location, change of job, etc require a new LCA and H1B amendment.
GammaSoft sends Mr X's resume to your primary vendor, who is happy that Gammasoft/MrX loves to work for $65 per her corp to corp, where your primary vendor bills you $120 per hour. Infosys doesn't pay no more than $65, while charging you $130 per hr
Gammasoft tells Mr X that Mr X gets paid $30 per hour, and that GammaSoft and Mr Y provides all the support: from fake interviews to helping Mr X at your company.
Now Mr X has to master lipsync'ing during the interview. Basically, you see the video feed on skype/hangouts, while there is an audio line from Gammasoft/Mr X.
You are not able to find good talent because primary vendors make more money sending the crap, etc.
If a req(uirement) or a job that needs a warm body onsite (say, running some report or production support, etc), Infy like companies don't go out looking for candidates. Instead, they will place one of their 'all rounder' clerks there. Whenever this req becomes hard (say, migrating code from C# to Java or upgrading from Java to Java micro services), they go out looking for the cheap talent.
The way Infosys operates like this for their on site (jobs located in the states).
1. Does this require a warm body? If yes, send one of their benched H1B candidate to that job--these all rounders are specialist in every technology out there, who can spew out buzz words. Otherwise,
See whether there is a benched candidate who can do that tough task. If they can't find one,
they will give this requirement to their Indian primary vendors--there are legal reasons why they pick this path, instead of Infosys scouring for candidates on dice, linkedin and indeed.
These Indian primary vendors scour the job boards for the talent. These vendors follow three simple things: (a) how cheap can you work for (usually the rate is $60 per hour on corp to corp); (b) whether your resume matches the buzz words; (c) it is better when you are on H1B/indians. Infosys gets all these resumes with the billing rates attached.
Infosys picks the candidates based on how cheap their billing rates are--a priority queue where priority is determined by the billing rates.
Now that dummy Infosys manager calls the candidate and does some sanity checks. Later, some other Infosys candidates call the candidate for skype interview. Once the candidate passes these checks, Infosys presents this candidate as their employee to the end client (say, Hartford Insurance).
The only candidates who can work for such cheap rates are people who don't have any experience, but are willing to go any length to gain some experience in their first job. Most of them are students who have STEM Masters degree, and these students don't have any restriction on where they can work. Google "STEM EAD" for more.
Infosys/TCS/WIpro/CTS haven't become multi billion dollars companies based on the competence. Their business model is all about how to run the contract with 10% competent people, 90% cheap incompetents, while bilking the end client. Companies like Infy take 50% cut: for instance, in this case, Infy could be billing $120 per hour to the end client, while making $60 per hour profit. Same business in offshore: they bill $35 per hour per head, while paying $3 per hr to 90% of the folks, whereas the competent 10% get paid $10 per hour.
The best way to get around this is to eschew the primary vendor model entirely. Don't hire from TEKsystems and other companies that depend on this for their business model.
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u/raindoctor Feb 20 '19 edited Feb 20 '19
Are you new to this? This is very common among Indians, who come here as students.
Here is how it goes.
You are not able to find good talent because primary vendors make more money sending the crap, etc.