US firms mull shifting work to India amid Donald Trump's H-1B visa crackdown

 

US firms are accelerating the shift of high-value work to India in response to President Donald Trump's H-1B visa crackdown, including a dramatic hike in application fees to $100,000 and tighter regulations on skilled immigration. This policy change is pushing US companies to reconsider their offshore and talent strategies, resulting in a significant expansion of global capability centers (GCCs) and offshore operations in India, particularly for roles in AI, R&D, finance, and technology services.

Impact on US Companies and Labor Strategy

• The steep increase in H-1B visa fees combined with tighter eligibility requirements is making it far less viable for firms to bring Indian professionals to the US for onsite roles.

• Companies are now redirecting critical work—previously performed by H-1B workers in the US—to Indian GCCs, relying on India's growing expertise and leadership in high-value sectors such as design, innovation, and advanced analytics.

• Smaller American firms and startups, which cannot absorb the high visa costs, are finding it more economical to execute projects offshore, while larger enterprises accelerate their India-based operations to ensure continuity and cost-efficiency.

Opportunities for India

• India now hosts more than 1,700 global capability centers, handling increasingly complex and high-value corporate functions for international clients.

• The H-1B fee hike is expected to boost the scale and sophistication of these centers, solidifying India's status as a global tech, R&D, and financial services hub.

• Major IT firms like TCS, Infosys, and Wipro have already shifted strategies toward offshore delivery and are expanding local hiring in the US, reducing dependence on H-1B visas while reinforcing operations in India.