https://lnkd.in/d3fbXq_W Trump's H-1B visa crackdown upends Indian IT industry's playbook By Haripriya Suresh and Sai Ishwarbharath B Visa fee of $100,000 for new H-1B visas is "prohibitive" H-1B visa fee may lead to legal challenges, selective sponsorship Deals, operating models expected to be overhauled U.S. firms' GCCs expected to grow in India, Canada, Mexico, and Latin America BENGALURU, Sept 21 (Reuters) - India's $283 billion information technology sector will have to overhaul its decades-old strategy of rotating skilled talent into U.S. projects following U.S. President Donald Trump's move, opens new tab to impose a $100,000 fee for new H-1B visas from Sunday, according to tech veterans, analysts, lawyers and economists. The sector, which earns about 57% of its total revenue from the U.S. market, has long gained from U.S. work visa programs and the outsourcing of software and business services -- a contentious issue for many Americans who have lost jobs to cheaper workers in India.

Trump’s H-1B visa crackdown upends Indian IT industry’s playbook India’s $283 billion IT sector faces a major strategic shift due to U.S. President Donald Trump’s imposition of a $100,000 fee on new H-1B visas starting recently. With the U.S. market accounting for 57% of its revenue and India securing 71% of H-1B visa beneficiaries last year, the move disrupts the industry's longstanding reliance on offshore talent rotation into U.S. projects. This change compels Indian IT firms serving clients such as Apple, JPMorgan Chase, and Microsoft to limit onsite staffing, enhance offshore delivery, and increase hiring of U.S. citizens and green card holders. Experts believe the "American Dream" for skilled foreign workers will become harder to achieve, pushing firms to reduce cross-border travel and focus on operations from countries like India, Mexico, and the Philippines. Industry representatives warn of ripple effects on America’s innovation ecosystem and potential margin pressures, as the traditional onsite-offshore business model faces disruption. Client-facing roles are expected to decline significantly, leading to demand for repricing, project delays, and a shift toward offshore or near-shore delivery from project initiation. Legal professionals report heightened confusion over the policy, noting the fee’s steepness and its restriction to new applicants, excluding current visa holders and renewals. Companies advised visa holders to remain in or swiftly return to the U.S., causing upheaval among Indian and Chinese workers. Legal challenges against the order are anticipated imminently. This policy change arrives amid additional pressures on the Indian IT sector, including a proposed 25% tax on outsourcing payments and subdued growth due to cautious U.S. tech spending amid inflation and tariff concerns. Industry analysts foresee accelerated growth of global capability centres (GCCs), which are evolving from basic back offices into innovation hubs supporting high-value functions. GCCs in regions like Canada, Mexico, and Latin America are expected to benefit from locale advantages, while India’s GCC market continues expanding, projected to encompass over 2,200 companies and generate 2.8 million jobs by 2030. The combined impact will likely see increased local hiring in the U.S., enhanced automation and AI deployment, reduced outsourcing, fewer H-1B visas, and constrained employee mobility in the tech services sector. #AsiaRisk #Regulation #India https://lnkd.in/gCszRjFa

Strategically Navigating H-1B Fee & Wage Changes The evolving landscape of H-1B visas, including potential changes like a $100,000 application fee and increased prevailing wage requirements, is impacting how tech companies manage global talent. These shifts present financial and regulatory challenges for organizations heavily dependent on visa-sponsored professionals, both internally and through strategic partners. At Capgemini, we help clients proactively assess their exposure, restructure workforce models, and implement flexible strategies to mitigate risks and improve operational efficiency. Success Stories from Executives: - A major global financial institution reduced operational costs by 28% and enhanced SLA performance by reallocating 40% of H-1B tasks to Capgemini’s U.S. and LATAM teams. - A healthcare technology leader saved $2.5M annually by replacing visa-dependent consultants with green card holders and local talent, ensuring seamless service delivery. - A prominent retail brand smoothly expanded during peak seasons by leveraging our India and LATAM teams, avoiding layoffs and maintaining service excellence despite visa-related challenges. Let’s discuss how Capgemini can support you through this transformative phase, developing a workforce strategy that is compliant, cost-efficient, and future-ready. Read more about the impact of H-1B visa changes on tech firms: https://lnkd.in/g7ddeHCq #WorkforceStrategy #GlobalTalent #H1B #TechLeadership #Capgemini #DigitalTransformation #Compliance #FutureOfWork

H1-B Visa : A US Problem? Not India’s. The assumption that US restrictions on H-1B visas for Indians will lead to Indian IT companies suffering is realistic to an extent but has many nuances and implications for both sides. Indians constitute about 70-84% of H-1B visa holders, many working for US tech companies. This visa program has been a major conduit for Indian skilled workers to join and contribute significantly to the US economy, particularly in technology and healthcare sectors. The US tech industry, including startups and large corporations like Microsoft, Google, and Amazon, heavily relies on this talent pool. If the US restricts these visas or introduces very high fees (such as the $100,000 fee proposed recently), the immediate effect could be: - Disruption in the staffing and operations of US-based Indian IT projects. - Companies might reduce onshore US positions and shift more work offshore to India or other countries. - There could be increased costs passed on to US clients if Indian IT companies continue to sponsor H-1B visas. - US companies, especially smaller firms and startups, might struggle to attract highly skilled international workers, impacting innovation. - Some Indian skilled workers might choose to work from Indian offices instead of moving to the US, potentially benefiting India's tech sector growth. However, Indian IT giants have long anticipated such shifts and have been building stronger local teams within India and globally, reducing over-dependence on US visas. This could lead to enhanced innovation ecosystems in India as top talent remains or returns there. Overall, the disruption would hurt US tech companies significantly, possibly leading to a loss of competitiveness and innovation capacity. Indian IT companies could face short-term revenue uncertainties due to reduced US assignments but may also gain from an evolving global delivery model. Thus, the problem is shared—US companies rely heavily on Indian talent, but Indian IT firms also depend on US business models enabled by visa flows. Hence, the assumption is realistic but should be seen as part of a complex bilateral dynamic rather than a one-sided issue.

22/09/2025 Trump's H-1B visa crackdown upends Indian IT industry's playbook September 22, 20254:29 AM GMT+2Updated 19 mins ago BENGALURU, Sept 21 - India's $283 billion information technology sector will have to overhaul its decades-old strategy of rotating skilled talent into U.S. projects following U.S. President Donald Trump's move, opens new tab to impose a $100,000 fee for new H-1B visas from Sunday, according to tech veterans, analysts, lawyers and economists. The sector, which earns about 57% of its total revenue from the U.S. market, has long gained from U.S. work visa programs and the outsourcing of software and business services -- a contentious issue for many Americans who have lost jobs to cheaper workers in India. ndia was by far the largest beneficiary of H-1B visas last year, accounting for 71% of approved beneficiaries, while China was a distant second at 11.7%, according to U.S. government data. Trump's move to reshape the H-1B program will force IT firms with clients such as Apple (AAPL.O), opens new tab, JPMorgan Chase (JPM.N), Walmart (WMT.N), opens new tab, Microsoft (MSFT.O), Meta (META.O), and Alphabet's (GOOGL.O), opens new tab Google to pause onshore rotations, accelerate offshore delivery, and ramp up hiring of U.S. citizens and green card holders, experts said. AMERICAN DREAM SLIPPING AWAY "The 'American Dream' for aspiring workers will be tough," Ganesh Natarajan, former CEO of IT outsourcer Zensar Technologies, said, adding that he expected firms to restrict cross-border travel and get more work done out of countries such as India, Mexico and the Philippines. IT firms Tata Consultancy Services (TCS.NS), opens new tab, Infosys (INFY.NS), opens new tab, HCLTech (HCLT.NS), opens new tab, Wipro (WIPR.NS), opens new tab and Tech Mahindra (TEML.NS), opens new tab did not respond to the reporter requests seeking comment. Industry body Nasscom said the move would "potentially have ripple effects on America's innovation ecosystem" and disrupt business continuity for onshore projects. "Services exports have finally been dragged into the ongoing global trade and tech war," Emkay Global Chief Economist Madhavi Arora said, adding that it could disrupt the IT sector's onsite-offshore model, pressuring margins, and supply chain. Most industry watchers expect Trump's move to constrain client-facing roles, hurting IT deal conversion and extending the time taken to scale up tech projects. "Clients will demand repricing or delay start dates until there is clarity on legal challenges. Some projects will be re-scoped to reduce onshore staffing. Others will shift delivery offshore or near-shore from day one," HFS Research CEO Phil Fersht said. Page 1 continue U.S. President Donald Trump displays a signed executive order on gold card visa in the Oval Office at the White House in Washington, D.C., U.S., September 19, 2025

𝗛-𝟭𝗕 𝗩𝗶𝘀𝗮𝘀: 𝗪𝗵𝗮𝘁 𝘆𝗼𝘂 𝗻𝗲𝗲𝗱 𝘁𝗼 𝗸𝗻𝗼𝘄 Many Tums were chewed this weekend by US business leaders and H-1B visa holders. On Friday, the White House announced immediate changes to the H-1B visa. Most notably, a fee of $100,000 for each new H-1B visa application. This only applies to new applications, not existing visas or renewals. The impact of the fee will be widespread and vary significantly by company. I did a deep dive over the weekend. Here's what you need to know. 𝗕𝗮𝗰𝗸𝗴𝗿𝗼𝘂𝗻𝗱 The US has about 700,000 H1B visa holders working at 50,000 companies. Each year, 85,000 new H-1B visas are issued, along with 300,000 renewals. The H-1B is a 3 year visa, renewable once, for a total of 6 years. Last year, a Bloomberg report estimated that half of H-1B visas go directly to large firms like Amazon, Microsoft, and JP Morgan. The other half go to outsourcing and staffing firms. These range from giants like Tata and Cognizant to middlemen that function mostly as visa brokers for companies. These middlemen or "body shops" help explain why H-1B workers are present at 50,000 companies. It would be tough for small firms to navigate the H-1B lottery to only hire a few people. 𝗦𝗶𝘁𝘂𝗮𝘁𝗶𝗼𝗻 The median compensation for H1B workers is $118,000. Except for uniquely-skilled workers, an additional $100,000 fee shatters the basic economics of the visa for most jobs. Even a relatively small number of visas could rack up millions in fees. Bloomberg reported earlier this year that H1B hires are often used primarily to reduce costs, not fill domestic skills gaps, which was the original purpose of the visa. Firms hired "relatively low-level IT workers" for many jobs that could have been done by comparably-skilled US workers. The report also found that H1B software developers hired through staffing firms were paid $48,000 less than direct H1B hires. 𝗜𝗺𝗽𝗮𝗰𝘁 𝗼𝗻 𝗧𝗲𝗮𝗺𝘀 It's an urgent situation for teams planning to hire H-1B workers in the upcoming lottery. Teams must rapidly assess staffing needs and decide how to proceed, both in the short run and the long term. Your options are:  • Pay $100,000 per visa  • Hire US workers  • Hire consultants  • Fully offshore the work  • Automate the work with AI Each option comes with tradeoffs. The cost and capability of each option must be considered for each role. Consider that consulting firms will face the same dilemma as their clients. So the usual option of hiring consultants as short-term staff augmentation may not be viable. 𝗛𝗼𝘄 𝗱𝗼 𝘁𝗵𝗲 𝗛-𝟭𝗕 𝗰𝗵𝗮𝗻𝗴𝗲𝘀 𝗶𝗺𝗽𝗮𝗰𝘁 𝘆𝗼𝘂𝗿 𝗼𝗿𝗴𝗮𝗻𝗶𝘇𝗮𝘁𝗶𝗼𝗻? 𝗪𝗲 𝗵𝗮𝘃𝗲 𝗮 𝗣𝗹𝗮𝘆𝗯𝗼𝗼𝗸 𝘁𝗼 𝗵𝗲𝗹𝗽 𝘁𝗲𝗮𝗺𝘀 𝗻𝗮𝘃𝗶𝗴𝗮𝘁𝗲 𝘁𝗵𝗲 𝗛-𝟭𝗕 𝘀𝗶𝘁𝘂𝗮𝘁𝗶𝗼𝗻. 𝗖𝗼𝗺𝗺𝗲𝗻𝘁 "𝗽𝗹𝗮𝘆𝗯𝗼𝗼𝗸" 𝗶𝗳 𝘆𝗼𝘂'𝗱 𝗹𝗶𝗸𝗲 𝗮 𝗰𝗼𝗽𝘆. 𝗢𝗿 𝘀𝗲𝗻𝗱 𝗺𝗲 𝗮 𝗗𝗠 𝘄𝗶𝘁𝗵 𝗮𝗻𝘆 𝗾𝘂𝗲𝘀𝘁𝗶𝗼𝗻𝘀.

🔍 Trump’s New $100,000 H-1B Visa Fee: Risks, Shifts & Opportunities for Indian Tech The US government has announced a sharp hike in fees for new H-1B visa applications — a one-time fee of US$100,000 for new filings. This change does not affect existing H-1B holders or renewals, but going forward, it could significantly reshape how companies access and deploy international tech talent. Here’s what this means — and how Indian firms can pivot to turn challenges into strategic advantages: 🛑 Risks / Impacts Cost Increase: The new fee will raise the cost of sponsoring foreign workers dramatically. Companies that rely heavily on H-1B hiring will see much larger talent acquisition costs. Onshore Staffing Pressure: Projects that require onsite presence in the US may get costlier, causing delays or re-scoping. Margin Compression: Higher visa costs could squeeze margins in pricing models, especially for IT services and consulting that depend on sending staff to the US. ✅ Opportunities / Strategic Moves Accelerating Offshore / Nearshore Delivery Models: Since onshore work is now costlier, companies will likely shift more work (or entire teams) offshore or to nearshore hubs. This means strengthening infrastructure, processes, and talent retention abroad. Global Capability Centres (GCCs) / Local Expansion: U.S. firms may increase investment in their operations in India (or nearby), both to get around visa hurdles and to take advantage of cost-effectiveness and local talent. Automation, AI, Skill Upgradation: To reduce reliance on visa-based staffing, firms might invest more in automation, tools, and processes; raise the skill level of local teams so that fewer tasks require onsite US presence. Reuters Selective Sponsorship & Role Prioritization: Sponsorship under the H-1B may be reserved only for business-critical roles. Firms will more carefully evaluate where onsite presence truly matters. 🔭 What Indian Companies Should Be Thinking About Review cost structures — examine how much visa & travel & logistic costs add up; factor the new fee into pricing strategies. Strengthen remote/offshore delivery capabilities — ensure teams abroad have strong collaboration, infrastructure, and quality controls. Build talent pipelines locally in the US — hire more US talent, green card holders, or local contractors where possible. Explore alternative visa routes — for example, L-1, O visas, etc., wherever legally feasible. Conclusion: This move is certainly disruptive. But history has shown that when policy forces a pivot, companies that adapt fastest often emerge stronger. For Indian tech, while risks are real, there’s potential for this to accelerate long-term shifts that many firms have already begun: towards more offshore delivery, higher-value work, and more resilient operating models. Would love to hear thoughts: Do you see this as a turning point for the global talent & offshore model? What steps are your organization taking to adapt (or planning to)?

The new $100,000 H-1B visa fee is creating uncertainty for businesses that depend on global talent. Larger firms may be able to absorb the cost. But for smaller companies especially in tech—the impact could be real: higher barriers to hiring and tougher competition for critical skills. In a recent interview with Staffing Industry Analysts, our CEO Francoise Brougher shared how companies are responding and why alternatives like employer-of-record (EOR) models matter more than ever: “Businesses need solutions that allow them to continue hiring and managing employees without disruption. The new fee structure poses particular challenges for smaller tech companies, which depend heavily on overseas talent to stay competitive.” With an EOR, companies can compliantly hire talent where they are—without delays, disruption, or added costs. That flexibility helps businesses scale and expand strategically, even as policies shift. Read the full story here:  https://lnkd.in/g-7C728q #GlobalTalent #FutureOfWork #EOR #H1B