Why has Trump’s H-1B fee spooked GCCs in India?
There are 1,800 GCCs in India that employ about five million people. The IT industry lobby Nasscom has projected India's GCC sector to reach $110 billion by 2030. Will Trump stall this growth or are the fears exaggerated? Mint explains
The weekend panic over H-1B visas is worrying a segment of the technology industry that has emerged as a preferred recruiter for both experienced professionals and newbies: global capability centres or GCCs. About 1,800 such centres employ around five million people in India, which offers a skilled and cheaper talent pool. Will the GCCs come under Trump’s scrutiny? Mint explains:
How big is India’s GCC segment?
GCCs are offshore back-end units of multinationals that support the company with technology and talent. Over the past decade, tech and banking companies have established research and innovation teams in India, shedding their image of cost-saving centres. GCCs now work with start-ups and have entered tier 2 cities, helping their parent firms innovate. According to the IT industry lobby Nasscom, India’s GCC sector is projected to reach $110 billion by 2030. The government aims to create an “ecosystem" for more captive units to enter India.
Why are GCCs worried by Trump’s actions?
While announcing the new $100,000 fee on H-1B visas, Trump’s Friday proclamation highlighted the unemployment rates in the US. Among graduates aged 22 to 27, computer science and computer engineering majors were facing some of the highest jobless rates in the US at 6.1% and 7.5%, respectively. “Recent data reveals that unemployment rates among workers in computer occupations jumped from an average of 1.98% in 2019 to 3.02% in 2025," said the statement. More than 60% of GCCs in India are US-headquartered. Recruiters and engineering college placement officials in India told Mint that this is the exact catchment area that GCCs hire from, and now these firms may come under Trump’s radar.
How much do GCCs save for their parents?
In the past two-and-a-half years, 170 GCCs set up operations in India and hired about 1.40 lakh, according to Kamal Karanth, co-founder of staffing firm Xpheno that especially recruits for GCCs. The roles included that of engineers, accountants, and reconciliation experts. “GCCs hiring a similar profile in the US, subject to availability of talent, would pay 70% more per candidate than what they pay in India," he said. In fact, a Bengaluru-based GCC will have to pay 20% more than its counterpart in tier-2 cities like Mysore or Coimbatore. But GCCs hire experienced professionals in the first couple of years to “show the parent firm that the readymade talent pool that one was hunting for back home is available in India", Karanth said. After a few years, he said, they hire freshers to “add to the cost arbitrage".
What are Indian tech colleges saying?
One of the top engineering colleges in Bengaluru that has about 1,200 students in the batch of 2026 is nervous as GCCs have emerged as the top hirers in an uncertain job market. “Around 70 companies have come in with 380 offers, and 60% of these firms are GCCs. Now we are worried about the impact that our students will face if the spotlight moves onto GCCs from H-1Bs," said the placement head of the college. The college, for now, is entertaining only those firms that offer compensation upwards of ₹10-12 lakh. The IT services sector offers ₹3-5 lakh per annum, besides a few roles with a ₹9-10 lakh yearly salary. The campus placements this year will not be easy, as global uncertainties and tariff wars have forced companies to cut their hiring numbers. More so, when the IT sector has been delaying onboarding candidates, with some joining up to a year after the placement.
Who will suffer the most if Trump turns to GCCs next?
The recruitment sector is worried that if the Trump administration asks the multinationals to pay a higher tax for setting up shop offshore in countries like India, it may reduce the demand for talent. The domino effect will be on the middle and senior executives in a scant hiring season. However, a senior tax partner in one of the largest audit firms in India, speaking on the condition of anonymity, said Trump is unlikely to take this step as “pressurising the GCCs will impact bottom lines of these companies and the parent firms will be forced to pass on the burden to the clients and customers, which will backfire".
Is it all bad for Indian GCCs?
Not everyone says so. The recent changes in visa and immigration rules concerning the H-1B program are likely to have a positive impact on the ecosystem in India, according to Ritu Sethi, partner-technology and outsourcing & offshoring at ABC Consultants.
“Multinational firms, instead of hiring talent onsite at steep costs, may increasingly prefer setting up GCCs in India and hiring local talent to meet their global requirements. Additionally, we may witness a trend of Indian leaders with international experience choosing to return to India and take up strategic leadership roles focused on driving value and innovation for these firms," said Sethi. “While viewing these changing immigration rules from a singular perspective seems positive for GCCs in India, the implementation of the HIRE Act (which proposed hiking work visa costs) may bring different ramifications for the industry, potentially serving as a cautionary tale."
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