Will $100K H-1B visa fees push IT companies toward local hiring or offshore work?

Highlights:

$100,000 H-1B visa fee applies only to new applications from FY27; current visa holders and renewals are not affected.

Indian IT firms may shift toward local US hiring or expand offshore delivery centers to avoid high fees.

On-site revenues could decline, but lower staffing costs may improve profit margins.

Legal challenges to the fee hike are expected in US courts, creating uncertainty. - Advertisement -

H-1B visas for Indian IT firms dropped from 14,792 in 2015 to 10,162 in 2024, though Indians still hold over 70% of visas.

Major US tech firms like Amazon, Microsoft, and Google account for a large share of H-1B approvals.

The sector is spending over $1 billion annually on US-based upskilling and hiring.

Analysts say the fee hike may delay but not eliminate dependence