Trump’s $100,000 H-1B Visa Fee Could Reshape Global IT Hiring, Hit Indian Tech Giants Hardest

President Donald Trump’s decision to impose a $100,000 fee on new H-1B workers hired from outside the United States is expected to significantly disrupt the global IT outsourcing and staffing industries, according to a new analysis by Bloomberg News. The move marks the most aggressive restriction yet by the Trump administration on the hiring of skilled foreign professionals and is likely to have far-reaching consequences for multinational tech firms, particularly those headquartered in India.

Industry experts warn the policy could sharply reduce demand for H-1B visas, push more jobs offshore, and limit access to global talent for U.S. companies.

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A Costly Shift in U.S. Visa Policy

The newly announced fee applies to H-1B workers recruited from abroad, rather than foreign graduates already present in the U.S. It is designed to discourage companies from relying on overseas hiring and to promote domestic employment.

However, critics argue that the cost is so high that it effectively functions as a barrier rather than a regulatory measure—especially for firms that rely on global staffing models.

“This is not a marginal change,” said immigration attorney Jonathan Wasden, who advises several IT employers. “We’re already seeing companies pull back. The biggest concern is that truly exceptional talent overseas may never get the chance to work in the U.S.”

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Disproportionate Impact on IT Staffing Giants

According to Bloomberg’s analysis of U.S. government data, the fee would disproportionately affect multinational IT services firms that act as intermediaries, placing skilled workers at U.S. client companies.

Among the most impacted:

• Infosys Ltd.

• Tata Consultancy Services (TCS)

• Cognizant Technology Solutions

Between May 2020 and May 2024, nearly 90% of new H-1B hires at these firms were approved through U.S. consulates, meaning they would have been subject to the $100,000 charge if the rule had been in effect.

The Numbers at a Glance

• Infosys:

  • Over 10,400 workers (93% of new H-1B hires)

  • Potential cost: More than $1 billion in visa fees

• Tata Consultancy Services:

  • Around 6,500 workers (82% of new approvals)

  • Potential cost: Hundreds of millions of dollars

• Cognizant:

  • More than 5,600 workers (89% of new hires)

  • Similar scale of financial exposure

Even if the policy is blocked by courts, analysts believe the uncertainty alone will alter hiring strategies.

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Industry Response: Mixed Reactions

Some firms are attempting to downplay the immediate impact.

In a statement, Cognizant spokesperson Jeff DeMarrais said the company expects “limited near-term impact,” noting that it has already reduced reliance on visas and now uses them only for specialized roles that complement its U.S. workforce.

Others, however, acknowledge that the fee could accelerate an existing trend: shifting more work outside the U.S. rather than bringing talent in.

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The H-1B Debate, Reignited

The H-1B program, which offers 85,000 visas annually, has long been dominated by large tech and IT services firms. The program allows foreign professionals with at least a bachelor’s degree to work in the U.S., and demand regularly exceeds supply.

Both Republicans and Democrats have criticised the system, alleging it undercuts American workers. Industry data, however, shows that:

• H-1B workers must be paid prevailing wages

• Entry-level H-1B salaries often exceed the U.S. median wage

• More than 40% of new H-1B approvals in recent years went to workers recruited directly from abroad, rather than foreign students already studying in the U.S.

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Broader Implications for U.S. Competitiveness

Policy analysts warn that steep visa costs could weaken the U.S. position in technology and innovation by restricting access to global talent—especially in areas such as artificial intelligence, cybersecurity, and advanced software engineering.

While the administration frames the move as protecting American jobs, critics argue it may instead push innovation and high-value work overseas, reducing U.S. competitiveness in the long run.

Legal challenges to the fee are expected, but until there is clarity, companies are already reassessing how—and where—they hire.