In the nearly three years since the technology bubble burst, the use of L-1 visas to bring in workers--with a large percentage from India--has become a popular strategy among firms seeking to cut labor costs. The number of these temporary visas granted rose nearly 40 percent to 57,700 in 2002, from 41,739 in 1999.

The visas are intended to allow companies to transfer employees from a foreign branch or subsidiary to company offices in the United States. But they are now routinely used by companies based in India and elsewhere to bring their workers into the United States and then contract them out to American companies--in many instances to be replacements for American workers.

...

Controversy over the visa, which has been in existence for 33 years, is not entirely new. Three years ago, the General Accounting Office reported that the Immigration and Naturalization Services, the precursor to BCIS, had found a high incidence of fraudulent use of L-1 visas and had called abuse of the visas "the new wave in alien smuggling."

But protest over the use of temporary foreign workers has become more vocal in a rocky economy. One 57-year-old computer consultant in Avon, Conn., who has been out of work for five months said, "This isn't just an IT issue," referring to the information technology industry.

"It's a big issue with multiple professions, and has a serious effect on the economy," said the consultant, who asked that his name not be used for fear of jeopardizing his chances to find work. "A lot of this is about the economy, and the L-1 issue is just exacerbating the problem."