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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.