Here’s how the H-1B visa fee may accelerate the growth of GCCs in India
The new fee for H-1B visas at $100,000 is most likely to result in increased technology offshoring of work to India, especially by GCCs, given the presence of talent in India.
The unprecedented hike for the coveted H-1B visas to $100,000 by the Trump administration in the United States may actually see faster expansion of the global capability centres (GCCs) in India, as global corporations see the country as the destination that will provide them with the talent.
The sharp increase in H-1B visa fees from the present level of around $5,000 is forcing companies to look at other options on how they can get access to talent and India is the location which can provide the supply, given that the country produces an estimated 1.5 million engineers every year.
Xpheno co-founder Kamal Karanth said, “We expect MNCs to increase their reliance on GCCs and IT services firms in India, which remain a cost-effective option even after factoring in the 25%cess.”
GCCs have emerged as the most important segment for the $283 billion Indian technology industry. According to Nasscom, India is now home to around 1,700 GCCs generating revenues of $65 billion, employing around 1.9 million. The revenue contribution of GCCs is projected to touch $110 billion by 2030, with the presence of around 2,400 such units.
These GCCs could be seen as the in-house technology arm of the company, and all such units in India are primarily coming in from companies which are headquartered in developed economies like the US, Canada and Western Europe.
GCCs are here in India primarily for the talent, which is available at competitive rates, but more importantly, also for the considerable tech expertise. Neither of these elements is available in large volumes in developed economies, which makes India an attractive destination for setting up their technology outfits.
V Balakrishnan, former Infosys board member and Chairman of Exfinity Ventures, an early-stage venture capital firm, said, “This (new visa fees) will accelerate offshoring of work to India as the talent is here. This is more true for GCCs.”
He further added that today the remote working environment has become much more mature, which has increased the confidence levels of companies to increase their technology offshoring work.
A senior industry official said India is the only country which can provide talent both in terms of volume and value. At one time, there was talk of talent availability in the Eastern European region, but again, this is available in limited numbers.
Today, besides the companies setting up their GCCs in India, the Indian IT services companies are setting up separate divisions to tap into this opportunity.
Karanth said, “The proposed hike in H-1B visa fees is not a surprise, and IT services companies have been preparing for such developments. Over the last six months, many of them have either nominated or hired new GCC heads to capitalise on the GCC route for business.”
On the other hand, the Indian IT services companies may see some short-term impact on how to deal with the new H-1B visa fees, but they seem to be well prepared to adjust to this change.
Balakrishnan said, “Most of the Indian IT companies have localised their workforce in the US.”
Over the years, Indian IT companies have increased the percentage of US citizens as their employees in America, cushioning the impact of any change in the regulatory environment. This is also reflected in the list of companies that have received H-1B visas in 2025 till the month of June. In the top 10 list, there is only one Indian company - Tata Consultancy Services - with the rest being American operations and Amazon Web Services (AWS) heading the list.
The hike in H-1B visa fees could actually turn out to be a blessing in disguise for the India’s technology industry.
Edited by Jyoti Narayan