BS EDIT: A Shock to Indian IT: The H-1B Reckoning

By Business StandardPublished On Sep 22, 2025

The Sudden Blow

Trump’s $100,000 H-1B visa fee, announced without warning, triggered panic and exposed the fragility of Indian IT’s dependence on foreign work permits

A Radical New Phase

The policy signals a clear shift. Trump’s coalition now favors hardline immigration controls over the interests of Big Tech and global talent

Indian Firms Take the Brunt

With Indians holding 70% of H-1B visas, the financial and operational impact falls hardest on India’s outsourcing and staffing firms

The Model Is Outdated

Outsourcing based on wage gaps is no longer viable. With narrowing global pay scales and rising automation, cost arbitrage is losing its edge

A Strategic Reassessment Is Due

Indian IT firms must reassess strategies built on low-cost labor and visas, and shift toward value-added services, innovation, and talent development

The Path Forward

Disruption is inevitable. But it also opens the door for reinvention—through AI adoption, upskilling, and a pivot to sustainable, future-facing models