In a move that's rattled the global tech ecosystem, former U.S. President Donald Trump’s proposed $100,000 fee on new H-1B visa applications is being seen as a major setback for Indian tech talent. Industry experts warn that India’s $283 billion IT services sector may be forced to rethink its long-standing strategy of rotating skilled professionals into U.S. projects.
The fee, set to take effect this Sunday, could significantly disrupt the talent mobility model that has underpinned India's outsourcing dominance for decades, say analysts, legal experts, and economists.
According to data from the US government, India was the leading recipient of H-1B visas last year, with 71% of the approved beneficiaries, while China followed with 11.7%.
The industry, which derives approximately 57% of its overall income from the US market, has historically benefited from US work visa initiatives and the outsourcing of software and business services. This has been a controversial topic for many Americans who have lost jobs to more affordable labor in India.
According to experts, IT companies with clients like Apple, JPMorgan Chase, Walmart, Microsoft, Meta, and Alphabet's Google will need to halt onshore rotations, speed up offshore delivery, and increase the hiring of US citizens and green card holders, as a result of Trump's decision to reform the H-1B program.
According to technology experts, analysts, lawyers, and economists, India's $283 billion information technology industry will need to revamp its long-standing approach of deploying skilled workers to U.S. projects. This change comes in response to U.S. President Donald Trump's decision to introduce a $100,000 fee for new H-1B visas starting Sunday.