So you're one of the companies giving H1-B a bad name by abusing it for cheap labor and taking money out of the foreigner's pockets then?
Without a middleman, the H1B holder is very tied to its employer and has a difficult time changing job or bouncing back after being laid off. A middleman could smooth that out, by keeping the employee a bit longer on the payroll until they find another contract. I know people using those kind of services in the UK.
Also if you are a permanent employee with good benefits, getting a quarter of what your company sell you for is not bad.
Anyway, that's a lot of "if", I agree.
I also offer a family package. You would not believe how many H1Bs I get that want to leave their L1 status because they want to move for various reasons. Marriage being the one I get the most.
When a contract ends, I will put H1Bs on internal work for as long as I can but the liquidity of this area is such that I hardly go past a month or two for any given candidate.
Don't blame us for leveraging what is legal and allowed by economics. I do this part time through an entity I setup with a partner who is from India. He recently returned to India so we could open a site there where we can off shore work. Pumping work into those areas seems like a good thing to me. In addition, the Indian government gives free land if we open offices and/or buy buildings there too.