**US Firms Accelerate Shift to India Amid Trump’s Visa Restrictions**
*By Mudit Dube | Sep 30, 2025, 01:12 PM*
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**Overview**
Recent hikes in H-1B visa application fees by US President Donald Trump are prompting American companies to increasingly shift their operations to India. Industry experts cited by Reuters indicate that this trend is accelerating the growth of Global Capability Centers (GCCs) in India, which manage a wide array of functions from finance to research and development.
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**Growth of GCCs in India**
India, the world’s fourth-largest economy, is home to over 1,700 GCCs—accounting for more than half of the global total. The country has transformed from being primarily a tech support destination to a hub of high-value innovation, spanning areas such as drug discovery and luxury car design.
This shift is further propelled by rising adoption of artificial intelligence (AI) and stricter visa regulations in the United States, making India an increasingly attractive destination for strategic business operations.
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**US Firms Reassess Workforce Strategies**
According to Rohan Lobo, partner and GCC industry leader at Deloitte India, US companies are reevaluating their workforce needs in light of recent policy changes. He notes, “GCCs are uniquely positioned for this moment. They serve as a ready in-house engine.”
The strategic realignment is particularly evident in sectors like financial services and technology, especially among firms involved with US federal contracts.
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**Policy Changes Driving the Shift**
This month, the cost for new H-1B visa applications was raised dramatically—from the previous range of $2,000–$5,000 to $100,000. This significant increase places additional pressure on US companies that depend on skilled foreign workers to address critical talent shortages.
Adding to this, US senators have reintroduced legislation aimed at tightening regulations on H-1B and L-1 visa programs, further complicating the hiring of foreign talent.
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**High-End Work Moving to Indian GCCs**
Industry experts anticipate that US firms will transfer more high-value tasks—such as AI development, product innovation, cybersecurity, and data analytics—to their GCCs in India. Unlike outsourcing, companies prefer to keep these strategic functions in-house within their global subsidiaries.
The recent policy changes have intensified conversations around relocating sophisticated work to Indian GCCs, a move many companies had already been considering.
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**Potential for Increased Offshoring**
Lalit Ahuja, founder and CEO of ANSR, which has assisted major corporations like FedEx and Target in establishing GCCs, highlights a “sense of urgency” in the transition to India.
Ramkumar Ramamoorthy, former Managing Director at Cognizant India, warns that this urgency could lead to “extreme offshoring” in some cases.
Meanwhile, an executive from a retail GCC indicated that companies may either shift more roles to India or opt for nearshoring alternatives in Mexico or Colombia.
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With rising visa costs and tighter immigration policies in the US, India’s GCC ecosystem is poised for substantial growth as American firms seek efficient ways to maintain access to skilled talent and critical functions.
https://www.newsbytesapp.com/news/business/trump-s-h-1b-visa-fee-hike-pushes-us-firms-to-india/story
