Trump’s H-1B visa fee increase spurs U.S. companies to shift jobs to India’s IT hubs

India’s 1,700+ Global Capability Centres, handling finance, cybersecurity, R&D, and AI, are rapidly expanding as U.S. visa restrictions push companies to relocate high-value operations and innovate within India’s growing tech ecosystem

The recent hike in H-1B visa fees under U.S. President Donald Trump is expected to speed up the relocation of critical business functions from the U.S. to India, experts say. The fee increase—from $2,000-$5,000 to $100,000—targets skilled foreign workers and places added pressure on American companies relying on this talent pool. This move is driving a faster growth in India’s Global Capability Centres (GCCs), which manage operations ranging from finance and cybersecurity to research and development.

India’s GCCs emerging as innovation hubs

India currently hosts over 1,700 GCCs, accounting for more than half of the global total. These centres have evolved beyond tech support to become innovation powerhouses, contributing to high-value work such as luxury car design and pharmaceutical research. The rise of artificial intelligence (AI) and tightening visa rules in the U.S. are pushing companies to rethink labor strategies.

“GCCs are uniquely positioned for this moment,” said Rohan Lobo, Deloitte India’s GCC industry leader, noting that many U.S. firms are already shifting strategic work to their Indian centres. According to Lobo, these centres are expected to handle more innovation-led projects in areas like financial services and technology, especially for companies with federal contracts.

Growing pressure and strategic shifts

U.S. senators recently reintroduced legislation to tighten H-1B and L-1 visa rules, aiming to close loopholes and curb abuse. This adds further uncertainty for companies depending on these visas. Lalit Ahuja, CEO of ANSR, said, “There is a sense of urgency” among firms planning to move high-end tasks such as AI development and cybersecurity to India.

Ramkumar Ramamoorthy, former Cognizant India MD, warned this might lead to “extreme offshoring,” a trend reinforced by the pandemic showing remote work viability.

Top U.S. companies like Amazon, Microsoft, and JPMorgan Chase, major sponsors of H-1B visas, have large Indian operations but declined to comment on the visa changes due to political sensitivity.

Balancing risks and opportunities

Despite the push for offshoring, some companies remain cautious, watching closely as potential U.S. tax reforms like the HIRE Act could penalize outsourcing by imposing a 25% tax on overseas jobs. This adds complexity to India’s position as a global service hub.

Nevertheless, Nomura analysts believe increased GCC demand might offset revenue losses caused by visa restrictions, offering India’s $283-billion IT sector a buffer. As the landscape shifts, India’s GCCs are poised to become even more critical in the global technology and innovation ecosystem.