Highlights:
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H-1B Visa fees in the US have increased to up to $100,000, prompting companies to rethink hiring strategies.
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India hosts around 1,700 global capability centers (GCCs), which could absorb high-end tech and finance work.
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US firms, including JPMorgan Chase and Walmart, are considering offshoring due to visa restrictions.
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Analysts estimate India could have over 2,200 GCCs by 2030, with a market size approaching $100 billion.
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Proposed US legislation, like the HIRE Act, could impose a 25% tax on outsourced work, but India’s growing GCC sector may mitigate the impact.
US companies are reconsidering their workforce strategies after President Donald Trump raised the H-1B Visa application fee to up to $100,000. Experts say the move may push American tech and finance firms to relocate high-end work to India, where a growing network of global capability centers (GCCs) can support advanced projects.
H-1B Visa Fee Hike Drives Companies to Reassess Labor Strategies
For years, US firms have relied on skilled foreign workers to fill talent gaps in critical areas such as artificial intelligence, cybersecurity, and product development. The new H-1B Visa fee hike is forcing many companies to rethink hiring strategies, with India emerging as a top alternative.
India hosts around 1,700 GCCs that manage everything from finance and IT services to drug discovery and product design. These centers have evolved from traditional call-center operations into hubs of innovation, handling advanced data analytics and designing components for luxury products. Industry insiders say the visa changes could accelerate the trend of moving more operations offshore.
“GCCs are uniquely positioned for this moment. They serve as a ready in-house engine,” said Rohan Lobo, partner at Deloitte India. He noted that plans are already underway in sectors connected to financial services, technology, and federal contracts in the US.
Urgency Among US Companies
Lalit Ahuja, CEO of ANSR, which has helped firms including FedEx, Target, and Lowe’s set up operations in India, described the mood among US companies as one of “urgency.” He added that some firms are preparing for “extreme offshoring,” reflecting a shift in priorities caused by the rising cost of H-1B Visas.
The trend is not limited to technology. Wall Street banks such as JPMorgan Chase and retail giants like Walmart, both major H-1B Visa sponsors, also have large bases in India. While these companies remain tight-lipped due to political considerations, sources indicate that relocating jobs overseas is being seriously evaluated.
India’s Advantage Over Other Countries
Although countries like Mexico, Colombia, and Canada may benefit from increased outsourcing, India’s scale, skilled workforce, and mature GCC ecosystem give it a clear advantage. Analysts predict India could host more than 2,200 GCCs by 2030, with the sector’s market value approaching $100 billion.
H-1B Visa Restrictions and Proposed US Legislation
US lawmakers have proposed the HIRE Act, which would impose a 25 percent tax on outsourced work. If enacted, this could impact India’s $283 billion IT industry. Experts, however, suggest that the growing demand for GCC services may soften the impact.
“For now, we are observing and being ready for outcomes,” said the India head of a US pharmaceutical company’s GCC.
Economists note that revenue lost due to H-1B Visa restrictions could be replaced by increased services exports from India’s GCCs. This means the very policy intended to limit offshoring may inadvertently accelerate it, shifting critical American jobs and innovation centers abroad.
Implications for the US Workforce
The H-1B Visa changes highlight the challenges of relying on foreign talent while implementing restrictive visa policies. By making visas more expensive, US companies face higher operational costs if they continue hiring in the US, leading many to expand offshore centers in India where skilled labor is abundant and operational costs are lower.
In summary, the H-1B Visa fee increase may reshape global workforce strategies. India’s thriving GCC network positions it to capture more high-value work from American firms, while US companies assess the trade-offs of domestic hiring versus offshore operations.
