[geekam]

Companies like TCS and Infosys bring cheap labor mostly on L1 and not on H1. Most of the H1's I know are US graduates and majority are MS/PhD in CS. It is the L1 visa that allows a company to bring in cheap labor because the limitation on minimum salary by the DoL is not as stringent as H1. For H1 visa, a company has to file for labor certification with DoL and they decide what the minimum prevailing wage for a particular zip code, the skillset and the experience is. [1]

Having said above I agree that the H1 visa IS being abused but the main issue is L1, not H1. there was about 20% abuse a few years ago and there was a huge crackdown by the USCIS and DoL on those doing that.

[1] http://www.immihelp.com/l1-visa/l1-visa-h1b-visa-comparison.... See the "Prevailing wage", "DoL approval", "Education requirement"