US raises H-1B visa fees: What it means for Indian IT
Big news for Indian IT: The US just hiked H-1B visa fees from around $10,000 to a huge $100,000.
For companies like TCS, Infosys, HCLTech, and Wipro—whose US revenue exposure is substantial (top-tier firms derive roughly 55% of their revenue from the US, while the industry as a whole gets up to 85%)—this could mean an extra $150-550 million in costs and a 7-15% dip in profits.
Indian IT firms are offshoring and hiring locally in US
To manage these higher costs, Indian IT giants are planning more offshoring and hiring locally in the US—even if it means paying bigger salaries.
With visas now so expensive for onsite roles, expect more subcontracting and remote work.
But these changes might slow down projects or make renewing visas trickier.
Clients might feel the pinch as costs get passed on
Some of these new costs will likely get passed on to clients through tighter contracts or slimmer margins.
The fee hike is also pushing the industry further toward offshore delivery, gig work, and remote contracting—a trend already growing in the massive $283 billion outsourcing world.
Big US tech firms are feeling the pinch too
Indian IT firms have an edge thanks to their experience with subcontracting.
Still, even big US tech companies now face similar visa challenges.
Everyone's trying to balance cost control with finding skilled talent as immigration rules keep shifting.