The visa fees disproportionately increase costs for Indian IT firms, which sponsor hundreds of engineers annually. Workers face longer processing times and stricter audits, intensifying stress around career mobility. Indian professionals account for nearly 70% of H‑1B visas. However, the use of H-1B by Indian IT services companies has drastically reduced in recent years. The $103,265 fee makes hiring prohibitively expensive for small and mid‑sized firms. The new rules erode cost arbitrage and force prioritization of senior, high‑wage talent over entry‑level staff. The high costs actually make it unviable for talent mobility and limit global exposure for engineers.

Yes. The exorbitant visa fee will force companies to expand offshore delivery rather than relocate talent. Indian IT firms could accelerate investment in delivery centres in India, Eastern Europe, Latin America and Southeast Asia. US companies, facing higher costs for on‑site staff, will accept more offshore work, especially in AI testing, software development, support and back‑office functions. While this preserves competitiveness, it reduces cultural integration and client‑site exposure for Indian professionals. Overall, the rules push Indian IT toward a more distributed, remote‑first operating model.

Indian IT firms must recalibrate. Strategies include prioritizing senior, high‑wage talent for US placements while shifting entry and mid-level roles offshore. Companies will invest in automation, AI and cloud delivery to reduce dependence on on‑site staff. Expanding nearshore centers in Canada, Mexico and Europe provides alternatives to costly US visas. IT companies may also renegotiate contracts to share visa costs with clients or pass them as premium services offerings. Upskilling Indian workers in remote collaboration and compliance will be critical. Ultimately, resilience lies in diversifying geographies, strengthening offshore delivery and lobbying for fairer visa policies through industry associations.

On Wednesday, the US paused global immigrant visa interviews. This is to conduct mandatory in-depth training for its consular officers on new visa rules, though no timeline for training has been announced. The US State Department launched a global training program at all embassies and consulates in August 2026. As part of this, visa officers are learning how to strictly screen applicants who might depend on US public benefits. The training aims to ensure that every office reviews visa files in exactly the same way. But this sudden pause means indefinite delays in visa processing for thousands of people who had applied for a US visa and had scheduled appointments.

Are visa rules equally stringent in European countries?

European countries do not have a single visa regime like the US, but work permits and intra-company transfers face their own hurdles. The EU Blue Card (which combines a work and residence permit) system requires high salaries and qualifications, while national rules vary widely. Unlike the US, Europe does not have a centralised lottery for visas but imposes strict labour market tests. Indian firms face mobility challenges, though costs are lower than America’s new $100,000+ fees. Overall, for Indian IT workers, the EU is increasingly attractive, offering stability, lower entry costs and growing demand in fintech, AI and healthcare IT.