A proposal by former US President Donald Trump to levy a 100,000 dollar fee on new H-1B visa workers hired from outside the United States could have far-reaching consequences for the global IT outsourcing and staffing industry. The move, if implemented, would represent the most stringent restriction imposed on foreign skilled workers under the H-1B programme and is expected to significantly raise costs for multinational technology firms.
The H-1B visa programme has historically been dominated by large IT services companies, particularly from India, which use it to deploy skilled professionals with bachelor’s degrees or higher to client locations in the US. Firms such as Tata Consultancy Services, Infosys and Cognizant Technology Solutions rely heavily on this route to support project-based work and onsite delivery models.
According to a Bloomberg analysis, the proposed fee would disproportionately affect staffing and outsourcing firms that hire workers overseas and process their visas through US consulates. Data shows that nearly 90 percent of new H-1B hires by major IT firms between May 2020 and May 2024 were approved at US consulates rather than through domestic transfers. This means the proposed levy would have applied to the majority of their new hires during that period.
Bloomberg estimates indicate that more than 93 percent of Infosys’s new H-1B hires in that timeframe, amounting to over 10,400 employees, would have been subject to the proposed fee. This would have translated into additional visa-related costs exceeding one billion dollars for the company. Tata Consultancy Services would have faced the fee for around 6,500 employees, or 82 percent of its new H-1B hires, while Cognizant would have incurred charges for more than 5,600 workers, representing 89 percent of its new hires.
Industry experts believe that such a steep increase in visa costs could force companies to reassess their hiring and delivery models. Firms may look to expand local hiring in the US, increase offshore work, or accelerate investments in automation and artificial intelligence to reduce dependence on foreign labour. Smaller staffing firms, which operate on thinner margins, could be particularly vulnerable to the financial impact.
The proposal also raises broader questions about the future of global talent mobility and the competitiveness of the US technology sector. Critics argue that higher visa fees could discourage skilled professionals from seeking opportunities in the US, potentially affecting innovation and productivity. Supporters, however, view the measure as a way to prioritise domestic employment and reduce reliance on foreign workers.
While the proposal has sparked debate, its implementation would depend on legislative and administrative processes. Nevertheless, the analysis highlights how policy changes in the US can have significant ripple effects on Indian IT firms and the global technology workforce.
