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How to avoid middle vendor please help

Discussion in 'Immigration Matters' started by Suryapriya, Jun 11, 2010.

  1. Suryapriya

    Suryapriya New IL'ite

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    Hi,

    I am on H1B Visa and I got job recently(2 months back).Its a 2 month project.The problem is middle vendor(desi) pays very less amount to my employer(Amount is in 20's).My employer takes 20%.

    I asked middle vendor to increase the rate but he said the pay is very less. So I believed him :rant

    Primary vendor thinks that middle vendor is my employer but he is not.I talked to my colleague today and he said the original hourly rate is around $70 how come u are getting very less. So I said the whole story.

    I signed contract for 2 months and its finished and the project is extended for another 3 months(probably more).So my concern is can I talk to primary vendor(american) and explain him the whole thing and to have direct contract with my employer.

    If my middle vendor knows will he sue me or my employer?

    Thanks in advance.

    Could any of you please suggest me how to proceed?
     
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  2. Ranchu

    Ranchu Local Champion Staff Member IL Hall of Fame

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    SuryaPriya ,

    This is little complicated that you think. you are saying there is
    your place of work
    primary vendor,
    middle vendor
    your h1b owning company.
    (correct me if am wrong in this )

    When the Middle vendor hired your through your h1b-company, he would have made a contract signed between your owner and middle vendor. usually the contract has a catch clause saying - " your resource should not work through any other vendor for "your-current-client"-company. " or something on these lines. this is called Non-Competence agreement.

    so even if you talk to your primary vendor, it wont make any sense cause they may think its getting complicated to hire you and might backfire on your job.

    so let this go. if possible ask your client company casually sometime , whether they sponsor h1's and if so you would like to opt for full time employment.
    otherwise you are stuck until u get your next project.

    this is how it works everywhere.
     
  3. kinjal

    kinjal Bronze IL'ite

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    I agree with Ranchu.

    They will have contract singed so it wont be easy ignore middle vendor.

    You can check if company can directly hire you or start searching for new project.
     
  4. chocolate

    chocolate Platinum IL'ite

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    SP,For one thing, Its not so easy to jump from vendors to direct company where you working.Which shud be the ultimate answer to your question. For one thing thats why they make you sign a non compete agreement and other documents. Its understood that the company where you work pays way more than you get paid. Vendors in b/n take the cuts and you end up with very less amount than what company pays for your contract. One suggestion wud be to get the company to hire you as a full time employee. One more suggestion wud be to have them hire you as a contract to hire employee. That way you can eliminate the middle man and still benefit. Good Luck.
     
  5. SreeSri

    SreeSri Gold IL'ite

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    Lets see my opinion:
    Why do you want to remove the middle vendor? Just because you came to know that your client is paying $70 for your service? If so, consider that you never know that amount.
    Legally, I dont think that you can avoid any one in the chain, they will keep all the nuts and bolts tight before giving an offer to the other in the chain process.
    Each vendor do their own business in their own limits, their offer to the next vendor not necessarily to be bound for what they are getting.
    They simply give an offer to you by saying that " I need this work/skill, I pay this amount, would you like to work?" You will say "Yes" and start working. If you dont like that work, you simply have to find a better alternative which pays good for your work, but you can not breach the agreement.
    If you speak to anyone (including the client manager) about this, you are simply messing up the things instead of any single possibility of improvement.
    So, what I would suggest you is while working on this project, try to find another job/project which may pay better and jump out.
    (FYI, I just did the above last week :) which paid me at least $25 more. But yesterday I found that there are 4 layers in this project too :) consider that its the way that they do the business, live with it. All I got is better money. May be I will do the same thing little later :) who knows )
     
  6. writeme

    writeme Silver IL'ite

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    The client paying in 70s, and you being paid in 20s is not a fair deal! Usually the primary vendor takes $15, and other vendors $10 per hour - even after that, you are not getting the amount you deserve!! There are lots of desi consultants who take more money than the primary vendor. Quite unprofessional!!

    Removing the middle vendor may or may not work Surya.. Depends on how smartly you handle the situation. If you/your H1B consulatant have good relationship with the primary vendor, you may try talking with them. This is how to handle the situation - you said your term was for 2 months initially. After 2 months, the primary vendor should let the middle vendor know that your contract with client is ending. Meanwhile, your term is extended for few more months, and the new contract will be between the primary vendor and your H1B consultant. The middle vendor will never know that your term with client was extended; and as long as you haven't signed any agreement with the middle vendor of not working with the client thru other consultants, you don't have to worry abt that.

    Its a really tricky situation, handle with care. You may be successful, all the best!! (I've seen this working :))
     
  7. veenausa99

    veenausa99 New IL'ite

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    Hi Supriya,

    At first place you are not supposed to accept the project for such low billing rate. you made yourself look cheap. Nobody to be blamed here except yourself. And moreover, you tried to find out your billing from client (the info you recieved $70 may be true or false, someone in the team just threw the number to disappoint you and play their mind game, this is my guess). Since you accepted it for $20+, be proud with it and live with it and gain experience. This is how it works in consulting business. i would suggest you, once you feel comfortable look for other projects and give your existing clinet appropriate 1 or 2 week notice.

    Trust me, discussing this with your end-client will jeopardise the whole situation and the client may even let you go out of the project (you never know all people involved in receiving the kickbacks of your billing).

    For myself, i would ask how many layers in between and if there are more than 2, i would simple ignore it OR if i like the project, i would request them "I want $nn/hour", if possible give it or leave it.

    May be you are new into IT consulting, you will learn it as time goes by.
     
  8. SreeSri

    SreeSri Gold IL'ite

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    Well said Veena, I second your opinion
     
  9. Sharongpl

    Sharongpl Senior IL'ite

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    I look for projects for my hubby, I only work with vendors who r direct to the client
     

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