H-1B visa fee hike unsettles IT sector; Visakhapatnam eyes new opportunities
The Donald Trump administration’s decision to introduce a $100,000 fee on H-1B visas has jolted India’s information technology industry, raising fears of shrinking mobility for skilled workers and accelerating the shift towards offshoring.
The H-1B programme has long been a pillar for Indian IT companies, enabling engineers to serve American clients directly. With the steep fee, firms are recalibrating. Multinationals are leaning on Global Capability Centres (GCCs) in India, which can deliver business and technology services at significantly lower costs.
Analysts say companies like Tata Consultancy Services and Infosys stand to benefit in the short term as GCCs expand. Yet, the relief may be brief. The U.S. Congress is pushing forward the HIRE Act and other measures to tax or restrict outsourcing, a move that further clouds the outlook for Indian exporters.
“This is a double-edged sword,” said Ramesh Kumar, an IT professional from Visakhapatnam who returned from New Jersey last year. “On one hand, cities like ours could see job growth. On the other hand, the unpredictability of U.S. policy makes it impossible to plan beyond the immediate.”
India’s longer struggle with brain drain also continues. Many young engineers still aspire to build careers in Europe, Canada, or Australia, suggesting that American barriers alone will not redirect global talent back home. “Unless India invests heavily in infrastructure, world-class training and competitive ecosystems, our brightest minds will keep looking overseas,” observed Dr. K. S. Prasad, an educationist in Visakhapatnam.
Tier-2 and tier-3 cities such as Visakhapatnam hold promise in this realignment. With targeted investment in local expansion and skilling, industry insiders believe thousands of new jobs could be created. However, experts caution against premature optimism, given the volatility of U.S. policies and legal hurdles.
“Tata and Infosys have the capacity to reshape India’s IT landscape,” said a senior member of the local IT association. “But long-term success will depend on attracting returning talent, building advanced capabilities, and forging global partnerships that go beyond survival.”
For now, the mood in Visakhapatnam reflects cautious hope—job opportunities may grow closer to home, but the future of India’s IT sector remains tied to unpredictable decisions in Washington.