🌐 On Sunday, a new $100,000 fee for fresh H-1B visas went into effect in the U.S., sending shockwaves across India’s $283 billion IT sector. This surprise move by President Donald Trump could redefine how tech powerhouses deliver services to clients like Apple, Microsoft and Google.
For decades, Indian firms have thrived on a rotation strategy—sending skilled professionals onshore to work directly on U.S. projects. But with costs skyrocketing overnight, companies are likely to hit pause on these cross-border transfers and ramp up offshore delivery from hubs in India, Mexico and the Philippines. 💼✈️
American Dream meets a new reality
The dream of working in Silicon Valley may be tougher now. Firms are expected to become more selective, reserving the H-1B route for only the most critical roles. That means fewer opportunities for hopeful applicants and more reasons for companies to hire local talent—U.S. citizens and green card holders—to keep projects running on schedule.
Offshore and nearshore gains
Experts predict the shift will turbocharge growth at global capability centers (GCCs). These innovation hubs already support operations, R&D and finance for major corporations. Time-zone-friendly destinations like Canada, Latin America and India will see even more investment as firms look to maintain momentum without onshore visa hassles.
According to a recent report, India currently hosts over half of the world’s GCCs and could welcome over 2,200 centers by 2030, generating nearly 2.8 million jobs. 🚀
What’s next?
Legal challenges are already brewing, with industry insiders expecting multiple lawsuits in the coming days. Meanwhile, the IT sector is bracing for ripple effects—from delayed project starts and repricing demands to intensified pressure on margins. Some deals may be re-scoped to cut onshore staffing, while others pivot straight to offshoring from day one.
As the dust settles, one thing is clear: the service economics of global tech are entering a new era. Indian IT giants will need fresh playbooks—and fast. 🔄
Reference(s):
Trump's H-1B visa crackdown upends Indian IT industry's playbook
cgtn.com
