Trump's H-1B visa curbs may push US firms to shift high-end work to India's global capability centres, say experts
The shift would provide a boost to the growth of Indian GCCs, which handle operations ranging from from finance to research and development.
The Donald Trump-led administration's crackdown on H-1B visa, specifically the $100,000 fee for applications, may lead to firms in the United States shifting more work to India.
The revamping of the visa process may hasten the shifting of high-end work in US firms tied to AI, product development, cybersecurity, and analytics to global capacity centres in India, PTI reported quoting industry experts.
This would then provide a boost to the growth of Indian GCCs, which handle operations ranging from from finance to research and development, according to economists and industry insiders. These GCCs could emerge as hubs, combining global skills and domestic leadership.
The recent visa curbs, happening simultaneously with the firms' adoption of artificial intelligence, could lead to US firms redrawing their labour strategies, according to the PTI report.
India has around 1,700 GCCs at present, which accounts for more than half of the global tally. With the latest developments, India could leave behind its tech support origins and transform into a hub of high-value innovation.
“GCCs are uniquely positioned for this moment. They serve as a ready in-house engine,” PTI quoted Rohan Lobo, partner and GCC industry leader at Deloitte India, as saying.
Lobo said that multiple firms based in US are currently reassessing their workforce requirements, adding that “plans are already underway” for the shift. He underlined the greater activity in areas like financial services and tech, specifically among firms with exposure to US federal contracts.
“Either more roles will move to India, or corporations will near-shore them to Mexico or Colombia. Canada could also take advantage,” the India head of a retail GCC told PTI.
Big Tech companies Amazon, Microsoft, Apple and Google parent firm Alphabet, Wall Street bank JP Morgan Chase and retail chain Walmart are among the top companies sponsoring H-1B visas.
The only limitation to this would be the proposed HIRE Act, wherein US firms could face 25% taxes on outsourcing work overseas.
US Commerce Secretary on Tuesday Howard Lutnick said there will be “significant number of changes” in the H-1B visa process before the new $100,000 fee on applications comes into effect.
While saying that the current process was “just wrong”, Lutnick added, “…There are going to be a significant number of changes between now and 2026.”
Lutnick further said that while doctors and educators with high degrees must be permitted to move to US, for engineers, companies must hire only the highly-paid ones.
“The idea of having tech consultants and trainees who are inexpensive should be eliminated,” Lutnick said, adding that Trump and him are on the same page on this opinion.
“...I am completely on the view that this idea that inexpensive tech consultants should be coming into this country and bringing their families, I find it just wrong, and so it sits wrong with me,” the commerce secretary added.
