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August 02, 2007

Peningo Systems Selected to Provide WebSphere Commerce Development and Support Consulting Services

The Peningo Opinion Blog - Rye, New York - Peningo Systems has recently been selected to provide WebSphere Commerce Development and Support Consulting Services to a leading NASDAQ Bioscience Research firm.

Seeing the Light with Peningo Systems While pricing will always be a factor in the selection process by the “End Clients”, Peningo Systems was selected to provide WebSphere Commerce Development and Support services base on the combination of price and high level of quality and expertise in the Consultants that will be providing the services. The selection of Peningo System is an example of successful bypass of these Prestigious Names in IT Consulting and Professional Services, which Peningo often refer to as “The Prestigious One”.

Peningo will provide the WebSphere Commerce Development and Support services with a team of Senior Consultants with expertise in WebSphere Commerce development and system administration, based here in the U.S.A. . This level of Seniority and Expertise is rare to find when an “End Client” pays top dollar, utilizing the services from one of the Prestigious Names in IT Consulting and Professional Services.

The reasons these Senior level Experts are hard to retain when using one of the Prestigious Names in IT Consulting and Professional Services, is that their “Excessive Profit Margins” would NOT allow for these Senior Level Experts to be compensated properly. As a result, many of the Senior Consultants and experts in their respective technical fields chose to be employed elsewhere and are NOT available via one of the Prestigious Names in IT Consulting and Professional Services. To fulfill the Services to the “End Clients”, these “Prestigious Ones” look to retain resources who are:

  • Paid and command a lower salary. Many of these individuals are not Senior Level Consultants or Technical Experts.
  • On H1-B or L-1 Visa. Many times these Visa based Consultants are used because they are cheaper than Americans and Permanent Residents. As a result, the quality level of such candidates is suspect.
  • Resources located Offshore on the other side of the globe to provide the “WebSphere Consulting Services”.

For these reasons above, the quality of services from these “Prestigious Ones” has declined drastically. The founders of Peningo Systems has thrived for years in providing Consulting Services with the Senior Level Experts at rates that are below the rates of the “Prestigious Ones” with their sub-par to mediocre talent.

Aside from WebSphere Commerce, Peningo Systems supports and provides Consultants with expertise in many areas including:

To see Peningo Systems areas of expertise, please go to the Peningo Technical Areas page or go to the Peningo Websphere Consultants page.

 

 To see Peningo's other Blogs please go to

The Peningo Websphere Consultants Blog

The Peningo Opinion Blog

 

July 28, 2007

Myth About Consulting Jobs Versus Permanent Jobs in an H1-B - Outsourcing Influenced World


 In an effort to reduce costs of fielding consultants the Major IT Consulting organizations, which we refer as “The Prestigious Ones”, offer “Permanent Employment” with “Benefits” which comes with a low salary.

Anyone offering “Permanent Employment with Benefits” for consulting assignments is taking the consultant for a ride.  The reality is that consulting assignments have a beginning and an end.  For these reasons the ultimate Clients are willing to pay a substantial premium over the cost of their own employees.  When the assignment is over, the Consulting organizations will make every effort to have the employee transferred to another assignment, but such propositions are not based on certainty but in the hope that the exploitation may be able to continue.  When this fails, the Consultant finds themselves dismissed.

Every Consultant should expect premium compensation in their hourly rate instead of salary (salary employees work many overtime hours without compensation) and that hourly rate should include an amount taking into consideration the costs of self provided benefits, the fact that there are gaps in moving from one assignment to another and that there should be a premium for the difficult life (family wise) of a consultant that needs to travel away from home.   To settle for less means that someone is exploiting the Consultant as the organization will keep the premium for his/her sacrifices.
 

It is important for the Consultant to pay for their own “Benefits” as when they move to the next assignment it might not be with the same organization that provided the previous assignment.  By doing this the Consultant expand its Market and make it possible to achieve substantial earnings in keeping with the effort.
 

To make things worse the “Prestigious Ones” are attempting to replace the USA based Consultant by outsourcing offshore work which services the USA based clients. 

Blown Offshore to Mysore 
Obviously this is tax evasion as the offshore resources do not pay any Federal, State, Social Security or Medicare and the organization hiring do not have to match the Social Security and Medicare taxes  as if the work was performed by a USA based person.

We founded Peningo Systems to combat this problem of multiple layers of markups that ends up in between consultant and the end client. 

Peningo Systems solution to this problem is to bypass these “Offshore Outsourcers” and with the support of Peningo Systems Inc, contract directly between the Consultant and the End Client, thus, eliminating these ”Prestigious Ones” excessive Mark-ups and allowing for increased compensation for the Consultant while lowering the costs for the End Client.

With the Outsourcing IT Jobs OffShore and/or using employees who are H1-B Visa or L-1 Visa holders, many times the cost of “Services” to the “End Client” is slightly effected. Between huge markups by some of the Larger Outsourcers and/or the combination of multiple layers of subcontractors involved in providing the IT Services with their respective markups, the cost to the “End Client” is still high. All the Offshoring of IT jobs and hiring of H-1Bs & L-1 Visa holders offers is higher profit margins for the Outsourcers…….WHILE PROVIDING LOWER QUALITY OF SERVICE TO THE END CLIENT!!! It is very true the old saying that Power corrupts and that Absolute Power absolutely corrupts. It is time for the Consultant and the End Client to bypass these “Prestigious Ones” which every day are looking more like ruffians and knaves.



 
To All Americans: 

If you wish to voice your opinion, you are welcome in commenting to this post. If you wish to voice your opinion to a greater authority….Congress and/or your State Representatives, please go to the Peningo Advocacy Assistance Page.

July 18, 2007

Support the H-1B and L-1 Visa Fraud and Abuse Prevention Act of 2007

GRASSLEY AND DURBIN INTRODUCE FIRST BIPARTISAN H-1B, L-1 VISA REFORM BILL TO PROTECT AMERICAN WORKERS   

 

WASHINGTON, DC - U.S. Senators Chuck Grassley (R-IA) and Dick Durbin (D-IL) introduced "The H-1B and L-1 Visa Fraud and Abuse Prevention Act of 2007" to overhaul the H-1B and L-1 visa programs to give priority to American workers and crack down on unscrupulous employers who deprive qualified Americans of high-skill jobs.

Uncle Sam is on to you Outsourcers

The H-1B visa program allows American companies and universities to employ temporary foreign workers who have the equivalent of a U.S. bachelor’s degree in a job category that is considered    by the U.S. Citizenship & Immigration Services to be a "specialty occupation".  The L-1 visa program allows companies to transfer certain employees from their foreign facilities to their U.S. facilities for up to seven years.


“Our immigration policy should seek to complement our U.S. workforce, not replace it,” Durbin said. “Some employers have abused the H-1B and L-1 temporary work visa programs, using them to bypass qualified American job applicants.  This bill will set up safeguards for American workers, and provide much-needed oversight and enforcement of employers who fail to abide by the law.”

 

"This is about protecting the American worker,” said Senator Grassley.  “We're closing loopholes that employers have exploited by requiring them to be more transparent about their hiring and we're ensuring more oversight of these visa programs to reduce fraud and abuse.  A little sunshine will go a long way to help the American worker."

 

Provisions of the Durbin-Grassley bill would change existing law in the following ways:

Currently, the H-1B visa program is criticized for failing to protect American workers.

  • Under current law, only employers that employ H-1B visa holders as a large percentage of their U.S. workforce are required to pledge that they have attempted to find American workers before bringing in foreign workers.  The Durbin-Grassley bill would require all employers seeking to hire an H-1B visa holder to pledge that they have made a good-faith effort to hire American workers first and that the H-1B visa holder will not displace an American worker.
  • The Durbin-Grassley bill would require that before an employer may submit an H-1B application, the employer must first advertise the job opening for 30 days on a Department of Labor (DOL) website.  DOL would also be required to post summaries of all H-1B applications on its website.
  • The Durbin-Grassley bill would require that H-1B employers may not advertise a job as available only for H-1B visa holders or recruit only H-1B visa holders for a job.
  • The Durbin-Grassley bill would prohibit employers from hiring H-1B employees who are then outsourced to other companies. This is a method that some companies use to evade restrictions on hiring H-1Bs.


Currently, so-called “job shops” hire large numbers of foreign workers on H-1B visas for short time periods to train and then outsource these workers offshore.


  • The Durbin-Grassley bill would prohibit companies from hiring H-1B employees if they employ more than 50 people and more than 50% of their employees are H-1B visa holders.

 

Currently, the Department of Labor lacks sufficient oversight and investigative authority over the H-1B program.

  • The Durbin-Grassley bill would give DOL the ability to conduct random audits of any company that uses the H-1B program, and would require DOL to conduct annual audits of companies with more than 100 employees that have 15% or more of those workers on H-1B visas.
  • The Durbin-Grassley bill would give DOL authority to review employers’ H-1B applications for “clear indicators of fraud or misrepresentation of material fact.” Currently, DOL is only authorized to review applications for “completeness and obvious inaccuracies.”
  •  The Durbin-Grassley bill would give DOL 14 days to review H-1B applications, instead of the seven days currently permitted.
  • The Durbin-Grassley bill would give DOL more authority to conduct employer investigations and streamline the investigative process by, among other things, permitting DOL to initiate its own investigations and eliminating the requirement that the DOL Secretary personally authorize an investigation.
  •  The Durbin-Grassley bill would require the Department of Homeland Security (DHS) to share with DOL any information in H-1B visa applications indicating that an H-1B employer is not complying with program requirements.
  • The Durbin-Grassley bill would strengthen existing whistleblower protections for the H-1B program and establish whistleblower protections for the L-1 program.
  • The Durbin-Grassley bill would authorize the hiring of 200 additional DOL employees to administer, oversee, investigate and enforce the H-1B program.



Currently, the H-1B and L-1 visa programs are criticized for making it possible for companies to hire foreign workers at lower wages and with fewer rights than Americans, in turn creating incentives for companies to avoid hiring Americans.


  • The Durbin-Grassley bill would require H-1B and L-1 employers to pay employees the prevailing wage to ensure employers are not undercutting American workers by paying substandard wages to foreign workers.
  • The Durbin-Grassley bill would require the government to provide H-1B visa holders with information about their rights.
  • The Durbin-Grassley bill would require H-1B employers to provide an H-1B employee’s immigration documents to the employee upon request. 


Under current law, experts argue that employers can use the L-1 program to evade restrictions on the H-1B program because the L-1 program does not have an annual cap and does not include protections for American workers.  As a result, efforts to reform the H-1B program are unlikely to be successful if the L-1 program is not reformed at the same time.

 

  • The Durbin-Grassley bill would limit issuance of L-1 visas for employees of a “new facility” to an initial period of 12 months, which can be extended after the employer demonstrates that the new facility is legitimate.
  • The Durbin-Grassley bill would prohibit so-called “blanket petitions” for L-1 visas, requiring employers to submit a separate application for each L-1 visa. 
  •  The Durbin-Grassley bill would prohibit the outplacement of L-1 visa holders.
  •  The Durbin-Grassley bill would establish a process for DOL to investigate, audit and penalize L-1 employers.

 

Peningo Systems supports the efforts of U.S. Senators Chuck Grassley (R-IA) and Dick Durbin (D-IL). We feel that they are on the right track in addressing the abuses in these programs that in turn destroy opportunity for Americans in the IT Industry.

Bill has a dreamWith the Outsourcing IT Jobs OffShore, and/or using employees who are H1-B Visa or L-1 Visa holders, many times the cost of “Services” to the “End Client” is slightly effected. Between huge markups by some of the Larger Outsourcers and/or the combination of multiple layers of subcontractors involved in providing the IT Services with their respective markups, the cost to the “End Client” is still high. All the Offshoring of IT jobs and hiring of H-1Bs & L-1 Visa holders offers is higher profit margins for the Outsourcers…….WHILE PROVIDING LOWER QUALITY OF SERVICE TO THE END CLIENT!!! It is very true the old saying that Power corrupts and that Absolute Power absolutely corrupts. It is time for the Consultant and the End Client to bypass these “Prestigious Ones” which every day are looking more like ruffians and knaves.

We founded Peningo Systems to combat this problem of multiple layers of markups that ends up in between consultant and the end client.

Peningo’s solution to this problem is to bypass these “Offshore Outsourcers” and with the support of Peningo Systems Inc, contract directly between the Consultant and the End Client, thus, eliminating these ”Prestigious Ones” excessive Mark-ups and allowing for increased compensation for the Consultant while lowering the costs for the End Client.

If you wish to voice your opinion, you are welcome in commenting to this post. If you wish to voice your opinion to a greater authority….Congress and/or your State Representatives, please go to the Peningo Advocacy Assistance Page