
Rising H-1B visa costs may push companies towards remote hiring, limiting on-site roles for foreign workers. This trend may transform the tech landscape in India, promoting a hybrid model while necessitating investments in digital infrastructure and upskilling.
US President Donald Trump on Friday signed a proclamation raising the fee for H1-B visas to $100,000, effective September 21, a move expected to reshape global hiring strategies. While tech companies reportedly asked their employees with H-1B visas to return to the US ahead of the deadline, White House spokesperson Karoline Leavitt later clarified that this is a one-time fee, not an annual payment, and H-1B visa holders won't be charged to re-enter the U.S.
Amid this fee hike, experts believe that a trend of rising remote hiring may emerge, especially for Indian workers.
The H-1B visa fee increase may lead to more remote hiring, especially from India, which would benefit Indian tech professionals.
“The recent hike in the H-1B visa fee will likely boost remote hiring from India, as many multinational firms may prefer hiring skilled talent on a remote basis. While navigating the changing immigration laws, this shift will also provide increased access and employability opportunities for Indian tech professionals within such firms,” according to Ritu Sethi, Partner, Technology at ABC Consultants.
Notably, this could also reduce the number of Indians taking roles based in the US.
“However, the increase in visa fees will likely limit the number of Indians taking up onsite roles in US organisations might now favour on-site and nearshore delivery models due to the higher costs associated with H-1B visas,” Sethi said.
Businesses will utilise hybrid models, maintaining local roles for clients while centralising work in India and other talent hubs by scaling up through collaboration tools.
“Companies will shift to hybrid models where client-facing roles are local, but the majority of work is managed from India and other talent hubs. The key will be investing in strong collaboration tools, scaling global capability centres, and ensuring remote teams feel fully integrated into the organisation," said Kapil Joshi, CEO - IT Staffing, Quess Corp.
The proposed visa fee could significantly affect India's tech talent, prompting companies to rethink resource allocation. It may even lead to a reverse brain drain, attracting senior professionals back to India.
"With nearly 70% of H-1B visa holders being Indian, the proposed visa fee will have a transformative impact on the Indian tech talent landscape. This will require companies to reimagine the balance between offshore and onshore resources, according to Siddhartha Nigam, Partner, Global Markets and US Corridor Leader at Grant Thornton Bharat.
“It presents an opportunity to harness more talent based in India and may encourage senior professionals to relocate to offshore locations, including India, potentially signalling a reverse brain drain,” Nigam said.
Under the H-1B visa scheme, 65,000 visas are allocated each year to employers recruiting temporary foreign workers in specialised fields, with an additional 20,000 visas reserved for workers with advanced qualifications.
Since taking office in January, Trump has launched a wide-ranging immigration crackdown. The move to overhaul the H-1B visa programme is his administration's most prominent effort yet to reshape temporary work visas.
"If you're going to train somebody, you're going to train one of the recent graduates from one of the great universities across our land," said Commerce Secretary Howard Lutnick. “Train Americans. Stop bringing in people to take our jobs,” he added.