Talk about fanning the flames: A report by New York University and Wharton profs estimates that usage of H-1B visas does indeed result in a significant drop in wages paid to U.S. programmers and system analysts.
From the summary:
“Our estimates indicate that H-1B admissions at the current levels are associated with a 5-6% drop in wages for computer programmers and systems analysts. Offshoring appears to lower the wages of a slightly broader class of IT workers, including IT managers, by about 3%.
Computerworld has a writeup here.