Global Outsourcing Insights: Understanding the $100K H-1B Impact

The U.S. government recently introduced a significant increase in the H-1B visa fee, raising it to $100,000 for new applications. This policy, implemented in September 2025, makes it considerably more expensive for companies in the United States to hire foreign workers.  

The decision has prompted organizations to revisit their staffing strategies, particularly in the technology and IT sectors, which traditionally rely on international talent to fill specialized roles.  

Many experts predict that this fee will influence outsourcing trends, encouraging businesses to consider offshore delivery models as a cost-effective alternative to hiring on-site foreign employees. In this blog, we explore how the $100,000 H-1B visa fee may impact outsourcing, offshoring, and Global Capability Centers. 

How the New Policy Affects Outsourcing 

• Offshoring may become more prevalent: According to qz.com, the higher H-1B visa cost could drive U.S. companies to rely more on outsourcing overseas. While large multinational corporations may be able to absorb the additional cost, smaller firms and startups are likely to seek more affordable alternatives by partnering with outsourcing providers abroad. Previously, the H-1B visa fee was a few thousand dollars, making it economically feasible for companies to hire international talent for roles in the United States. However, the new one-time fee of $100,000 dramatically changes the financial equation. Hiring remote talent from countries like India or other regions with strong tech capabilities now presents a much more attractive option for companies looking to manage costs without compromising on skills. 

• Impact on outsourcing firms: As reported by Reuters, Indian IT companies are reassessing their traditional business models in response to the increased H-1B visa fee. Historically, these firms relied heavily on sending skilled professionals to the United States to serve clients directly. With the new visa fee, moving large teams to the U.S. is less economically viable. Consequently, Indian IT companies are expected to expand offshore operations in India and nearshore locations while selectively sponsoring U.S.-based employees for only the most critical positions. Additionally, companies may increase hiring of U.S. citizens or green card holders for on-site roles, allowing firms to balance compliance requirements with operational efficiency. This shift reflects a broader strategic change, where offshore delivery and remote collaboration take precedence over on-site deployment for cost management. 

• Global Capability Centers gain momentum: The $100,000 H-1B visa fee could accelerate the adoption and expansion of Global Capability Centers (GCCs) in India. GCCs are offshore units established by multinational companies to access skilled talent, drive innovation, and manage complex business processes without the cost and logistical challenges of relocating employees to the United States. According to The Economic Times, this policy may indirectly benefit India’s $60 billion GCC sector, as companies increasingly choose to retain work within India rather than relocating teams abroad. GCCs not only provide access to specialized talent but also create opportunities for innovation, knowledge sharing, and career development beyond major metropolitan areas. The expansion of these centers reinforces India’s position as a global technology and innovation hub, making it an attractive destination for companies seeking scalable and efficient delivery models. 

• Better response from European countries: This Economic Times article suggests that in addition to India, the new H-1B visa policy is influencing career decisions among highly skilled professionals who might otherwise have pursued opportunities in the United States. Many are now considering alternatives in Europe, where countries such as the U.K., Germany, France, and the Netherlands are actively seeking to attract skilled talent. These countries are offering various incentives, streamlining immigration procedures, and positioning themselves as viable destinations for international professionals. While these efforts may provide opportunities, the overall success of Europe as an alternative depends on its ability to overcome internal challenges, including economic constraints and evolving regulatory frameworks, to present a compelling option for foreign talent. 

Potential Consequences 

Experts highlight several possible outcomes of the new H-1B visa fee. One expected effect is an increased reliance on remote contracting and offshore delivery models, which reduces the need for on-site H-1B employees. Analysts from the Global Trade Research Initiative (GTRI) suggest that while the policy may not significantly increase local employment in the United States, it could shift some jobs overseas. The policy may also create opportunities for India to leverage returning talent and strengthen domestic digital and technological capabilities, further enhancing its role in the global IT ecosystem. 

Economists and business leaders caution that the policy could disproportionately affect small and medium-sized businesses and startups, which may struggle to absorb the higher visa costs. Additionally, some experts predict a potential “brain drain,” as highly skilled foreign professionals may choose countries with more accessible immigration policies and better opportunities, further shifting the balance of global talent distribution. These developments underscore the importance for companies to rethink workforce strategies and consider outsourcing and offshore delivery models as viable long-term solutions. 

Read Also: GCC vs GIC vs GBS: What’s the Difference and Why It Matters to Enterprises   

About KMK Ventures 

KMK Ventures, with its leading Global Capability Center (GCC) model, specializes in accounting and finance services. With a team of over 875 professionals, including CPAs, CAs, and finance experts, KMK empowers enterprises with operational efficiency, cost savings, and seamless scalability. Leveraging India’s skilled talent pool, advanced technological infrastructure, and deep expertise in finance and accounting, KMK provides world-class services tailored to meet enterprise needs. From finance and accounting to business process management, KMK ensures clients can maintain high operational standards while optimizing costs, staying compliant, and achieving business growth. 

Conclusion 

The $100,000 H-1B visa fee is reshaping global outsourcing and offshoring trends. While it changes on-site hiring dynamics in the United States, companies are increasingly exploring offshore delivery models, Global Capability Centers, and remote contracting as viable solutions. KMK Ventures, with its proven expertise in scalable, cost-effective accounting and finance services, helps businesses navigate this changing environment efficiently. By partnering with KMK, companies can maintain operational continuity, ensure compliance, and access global talent without the challenges associated with managing on-site H-1B employees. This strategic approach allows businesses to focus on growth, innovation, and long-term success in a competitive global market.