{"id":171147,"date":"2025-09-21T04:59:10","date_gmt":"2025-09-21T04:59:10","guid":{"rendered":"https:\/\/www.newsbeep.com\/us\/171147\/"},"modified":"2025-09-21T04:59:10","modified_gmt":"2025-09-21T04:59:10","slug":"rising-paywall-may-push-more-us-jobs-to-indian-shores","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us\/171147\/","title":{"rendered":"Rising paywall may push more US jobs to Indian shores"},"content":{"rendered":"<p>US-based multinationals stung by the hefty fee imposed on H-1B visas by the Trump administration could step up hiring in India at either their third-party service providers, which are the domestic IT services firms, or at their own <a href=\"https:\/\/economictimes.indiatimes.com\/topic\/global-capability-centres\" target=\"_blank\" rel=\"nofollow noopener\">global capability centres<\/a> (GCCs) based in the country, said experts.<\/p>\n<p>The steep <a href=\"https:\/\/economictimes.indiatimes.com\/news\/h-1b-visa\" target=\"_blank\" rel=\"nofollow noopener\">H-1B visa<\/a> costs, seen as a clampdown on the entry of skilled foreign workers into the US, could add costs and margin pressures but accelerate the offshoring momentum, they said, adding that this would boost employment in India and fill the talent gap in the country over the long term.<\/p>\n<p>To be clear, US press secretary Karoline Leavitt clarified late on Saturday that it was not an annual fee but a one-time fee that applied only to the petition, adding that those who already held H-1B visas and were currently outside the country would not be charged $100,000 to re-enter.<\/p>\n<p>There will be a short-term negative impact on <a href=\"https:\/\/economictimes.indiatimes.com\/topic\/indian-it-services-firms\" target=\"_blank\" rel=\"nofollow noopener\">Indian IT services firms<\/a>, though, according to Pareekh Jain, founder and CEO of consultancy firm EIIR Trend, because every project needs some people on site and the majority off-site.<\/p>\n<p>Meanwhile, companies will try to get more work through offshore workers. <\/p>\n<p>\u201cAnd similarly, American technology firms like <a href=\"https:\/\/economictimes.indiatimes.com\/topic\/microsoft\" target=\"_blank\" rel=\"nofollow noopener\">Microsoft<\/a> which cannot find people from H-1B will rely more on the <a href=\"https:\/\/economictimes.indiatimes.com\/topic\/gccs-in-india\" target=\"_blank\" rel=\"nofollow noopener\">GCCs in India<\/a>,\u201d said Jain.<\/p>\n<p>The US government\u2019s H-1B move may turn out to be a blessing in disguise, fast-tracking <a href=\"https:\/\/economictimes.indiatimes.com\/topic\/reverse-talent-migration\" target=\"_blank\" rel=\"nofollow noopener\">reverse talent migration<\/a> and resulting in an enhanced talent pool and opportunities in India, said recruitment firms.<\/p>\n<p>\u201cAs on-site roles in the US become costlier, more work will shift to India, creating greater opportunities and strengthening talent retention. This could even spark a reversal of brain drain, with more skilled professionals choosing to build their careers at home,\u201d said Kapil Joshi, CEO, Quess IT Staffing.<\/p>\n<p>The move will also add cost pressures on US-based companies which rely on outsourcing from Indian software service providers. \u201cWhile US firms will face margin pressures, requiring them to hire more locally and reskill existing employees, the strategic case for India is clear: more jobs, more innovation, and a stronger global leadership role in technology and services,\u201d Joshi said.<\/p>\n<p>GCCs, which are usually offshore cost centres for overseas firms, saw a 40% year-on-year revenue growth to $64.6 billion in 2023-24 across 1,700 centres employing 1.9 million workers in India. By 2030, the count is projected to surpass 2,400 centres, employing up to 2.8 million people and touching $100 billion in export revenue.<\/p>\n<p><img src=\"https:\/\/www.newsbeep.com\/us\/wp-content\/uploads\/2025\/09\/Longtermgoals.jpg\" height=\"270\" alt=\"Image for Longtermgoals\" width=\"360\" style=\"max-width:100%\" loading=\"lazy\" decoding=\"async\" class=\"jsx-fc85d5530152de43 figImage\"\/>ETtech<br \/>\n                <br \/>\u201cWe expect MNCs to increase their reliance on GCCs and IT services firms in India, which remain a cost-effective option even after factoring in a 25% cess,\u201d said Kamal Karanth, co-founder of Xpheno. \u201cIn the near term, IT services companies may become more aggressive in offering GCC-specific services, and the increased supply of talent could also lead to softer pricing for GCC staffing.\u201d<\/p>\n<p>Companies have been preparing for such protectionist policies over the past few years and reducing their reliance on H-1B visas significantly, said industry executives.<\/p>\n<p>Besides Indian IT services exporters cutting down on H-1B visa applications, multinationals are expanding their insourcing of tech services by setting up and expanding their technology centres in India.<\/p>\n<p>Over the past six months, many of them have either nominated or hired new GCC heads to capitalise on this route for business, Karanth said.<\/p>\n<p>According to Quess\u2019 Joshi, the H-1B visa fee increase may well mark India\u2019s golden moment.<\/p>\n<p>Also Read: <a href=\"https:\/\/economictimes.indiatimes.com\/tech\/information-tech\/indian-it-professionals-to-feel-the-heat-from-latest-h-1b-shock-what-you-need-to-know\/articleshow\/124014040.cms\" target=\"_blank\" data-type=\"tilCustomLink\" rel=\"nofollow noopener\">Indian IT, professionals to feel the heat from latest H-1B shock: What you need to know<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"US-based multinationals stung by the hefty fee imposed on H-1B visas by the Trump administration could step up&hellip;\n","protected":false},"author":2,"featured_media":171148,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[36],"tags":[28,101,102527,102528,19621,102526,1281,102525,102530,102529],"class_list":{"0":"post-171147","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-economy","8":"tag-business","9":"tag-economy","10":"tag-gccs-in-india","11":"tag-global-capability-centres","12":"tag-h-1b-visa","13":"tag-indian-it-services-firms","14":"tag-microsoft","15":"tag-offshoring-jobs-to-india","16":"tag-reverse-talent-migration","17":"tag-us-multinationals-hiring-in-india"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/171147","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/comments?post=171147"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/171147\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media\/171148"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media?parent=171147"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/categories?post=171147"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/tags?post=171147"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}