3. Nontraditional Workers According to a March 2008 survey by the Computing Research Association, the number of declared undergraduate computer science majors at doctoral-granting computer science departments continued its seven-year decline. Jobs related to networking and data communications analysis had the highest forecasted growth rate at 50 percent. As a result, IT firms and organizations that use IT products and services are concerned about a shortfall in the number of workers to fill these positions.
Figure 3 Average enrollment per U. S. omputer science department.
Facing a long- term shortage of trained and experienced workers, employers are increasingly turning to nontraditional sources to find IT workers with skills that meet their needs; these sources include contingent workers. 3. 1 Contingent Workers An individual does not have an explicit contract for long-term employment. In other words, workers who work for an organization on a non-permanent basis. Includes: freelancers, independent professionals, temporary contract workers, on-call or day laborers, on-site workers .
1. 1 Contingent workers in the work field A firm is likely to use contingent IT workers if it experiences fluctuations in its technical staffing needs.
They work depends on the company’s need for them. Temporary staffing firms recruit, train, and test job seekers in a wide range of job categories and skill levels, and then assign them to clients as needed. They are not considered official employees of the company, nor are they eligible for company benefits such as vacation, sick pay, and medical insurance.
A business (called the subscribing firm) transfers all or part of its workforce to another firm (called the leasing firm), which handles all human resources related activities and costs. 3. 1. 2 Advantages and Disadvantages of Contingent Workers Advantages| Disadvantages| Flexibility in type and amount of labor resources| Loyalty to employer or company| Save costs in benefits and tax| Disturbs organizations core morale and culture| Immediate access to expertise not present internally| Training costs| Savings in long-term compensation costs| | . 2 H-1B Workers H-1B is a temporary work visa granted by the U. S. Citizenship and Immigration Services (USCIS). These people work specialty jobs that require at least a four-year bachelors degree in a specific field. H- 1B workers may also be used when there are temporary shortages of needed skills. Often need to provide special expertise in overseas markets or projects that enable U. S. businesses to compete globally. An H1B worker is allowed to work for 6 years then they must leave the U.
S. for one year before they can be allowed to petition for another visa. H1B workers make up only 0. 1% of the U. S. almost 40% of them is employed in the IT industry. Every year congress sets a federal cap on the number of H-1B visas to be granted, this year the limit is 65,000 visas. 6, 800 of those visas are reserved for nationals of Singapore and Chile. Foreign workers, who teach in American universities, work in government research labs or nonprofit organizations.
H1b workers may be exploited because unethical companies may classify them as an entry-level worker, but they are actually doing the job of an experienced tech. 3. 2. 1 Application Process Once a decision has been made to hire a worker who will require an H-1B visa, an employer must begin the application process. There are two application stages: the Labor Condition Application (LCA) and the H-1B visa application. Company files an LCA with the Department of Labor (DOL) The employer then apply to USCIS for the H-1B visa
DOL Wage and Hour division reviews the LCA to ensure foreign worker’s wages won’t undercut of an American Worker. Figure 2. The application process. 3. 2. 2 Using H-1B Workers Instead of U. S. Workers U. S. Firms must be able to attract the best and brightest workers from all over the world. Most H-1B are brought to US to fill a legitimate gap that can’t be filled with the existing workers heavy reliance on the use of H-1B workers can lessen the incentive for US companies to educate and develop their own workforce. 3. 3 Outsourcing
Outsourcing is a long-term business arrangement in which a company contracts for services with an outside organization that has expertise in providing a certain function. The outside organization may perform the following services operating data center, support for telecommunications network, or staffing a help-desk. The reason for outsourcing is to lower costs and strategic flexibility. Offshore Outsourcing A form of outsourcing in which the services are provided by an organization whose employees are in a foreign country.
American Express, Aetna, Compaq, General Electric, IBM, Microsoft are examples of big companies that employ offshore outsourcing for functions such as help-desk support, network management, and information systems development. Pros and Cons of Offshore Outsourcing Pros| Cons| * Wages in many other parts of the world are low. * Its potential to speed up development efforts. | * It result new expenses from the additional time that will be required to select an offshore vendor. And costs that will be incurred for travel and communications. * Culture and language differences|
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