H-1B visa steep hike will lead to further reduction on dependency: Expert
Experts say the steep hike in H-1B visa fees will push companies to reduce dependency on foreign workers and accelerate investment in local talent and automation.
H-1B visa steep hike will lead to further reduction on dependency: Expert
Trump’s hike of the H-1B visa fee to $100,000 per applicant marks a major shift and will lead to further reduction on dependency, Sreedhar Kosaraju, Chairman, Andhra Pradesh Digital Technology Industry (APDTI) Network.
Top Indian IT firms like TCS, Infosys, Wipro, and Tech Mahindra have already reduced reliance on H-1B visas, shifting more work to India and hiring locally in the US. The fee will, however, force further adjustments and disrupt some onshore projects.
He told Bizz Buzz that with fewer H-1B visas, companies expect to boost offshore operations (work done from India), invest in automation as US MNCs move jobs out of the US.
Kosaraju said with this more GCCs will come to India, and exiting GCCs also will expand. Its time for AP to attract more GCCs to AP.
Asked on who will be impacted and how, he explained workers on H-1B visas will face fewer job offers and higher hurdles for renewals and transfers, meaning only the highest-paid or most critical roles get sponsored.
According to Kosaraju, major users of H-1B talent especially Amazon, TCS, Microsoft, and Google will cut back sharply on H-1B hiring, potentially leading to project delays and cost increases in the US.
Small firms and research outfits that can’t absorb the huge costs will be hit the hardest and may stop sponsoring H-1Bs entirely, he opined.
The new shift may encourage highly skilled Indian professionals and students to stay in India or return home, slowing or even reversing the “brain drain” to the US.
Kosaraju said top Indian students who might have gone to the US for MS or jobs may now look to other countries with friendlier immigration rules or seek high-paying roles in India’s growing AI and tech ecosystem.
On mixed outcome for Indian IT, he said while Indian firms might lose some onshore business, they could gain from more offshore work and a deeper talent pool staying in India. The fee hike might indirectly accelerate India’s position as a tech and innovation hub.
