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The steep levy applies to new H-1B workers hired from overseas and is aimed squarely at curbing the use of the visa programme by large staffing and outsourcing companies.
US President Donald Trump’s proposed $100,000 fee on fresh H-1B visa applications is set to deal a disproportionate blow to Indian IT majors such as Tata Consultancy Services (TCS), Infosys and Cognizant, potentially altering hiring models across the global technology industry. A Bloomberg News analysis shows that these firms, which rely heavily on skilled workers recruited from outside the US, would have borne the brunt of the costs had the rule been in place earlier.
Industry executives expect a further pullback in visa filings and a faster shift of work offshore. (Photo Credit: AP)
The steep levy applies to new H-1B workers hired from overseas and is aimed squarely at curbing the use of the visa programme by large staffing and outsourcing companies. Analysts say the move represents the toughest restriction yet on skilled foreign labour, raising costs sharply for employers and encouraging a shift of work away from the US.
Data analysed by Bloomberg indicates that multinational IT consultancies acting as intermediaries for US clients are the most exposed. Between May 2020 and May 2024, nearly 90 per cent of new H-1B approvals at TCS, Infosys and Cognizant were processed through US consulates, which would have triggered the proposed fee in almost every case.
Infosys appears the most vulnerable. More than 93 per cent of its new H-1B hires — over 10,400 workers — would have attracted the $100,000 charge. At TCS, around 6,500 employees, or 82 per cent of newly approved H-1B workers, would have fallen under the rule, while Cognizant would have faced the fee for about 5,600 hires, or 89 per cent of its total approvals.
Until now, the cost of securing an H-1B visa has typically been around $2,000. Had the new fee applied during the period analysed, the additional burden on these companies would have run into hundreds of millions of dollars, significantly altering the economics of overseas hiring.
The H-1B programme, which offers 85,000 visas annually to skilled foreign workers with at least a bachelor’s degree, has long been dominated by technology and IT firms. While critics from both major US political parties argue that the system depresses local wages, employers counter that rules require them to pay prevailing market salaries.
According to immigration attorney Jonathan Wasden, the proposed change is already influencing corporate behaviour. “We’re already seeing that happen,” he told Bloomberg. “The fear is that if you have truly exceptional talent overseas, those people are definitely going to be missing out.”
Industry executives expect a further pullback in visa filings and a faster shift of work offshore. “The IT consulting industry had already pulled back on new H-1Bs since 2024, and the fee will push more jobs overseas,” said Steve Hall, chief AI officer at Information Services Group Inc.
Experts also warn of a social impact. Young Indian professionals, particularly women — who form a growing share of new H-1B applicants — are likely to be hit hardest, as companies may hesitate to sponsor early-career workers given the sharply higher upfront costs. With employer expenses rising to at least $160,000 per worker, including salary and fees, smaller firms and startups could find sponsorship unviable.
Companies, meanwhile, say they are adjusting. Cognizant said the move would have limited immediate impact. “The recently announced Proclamation is expected to have limited near-term impact on Cognizant’s operations,” spokesperson Jeff DeMarrais said. “Over the past several years, we have significantly reduced our reliance on visas, using them only for select technology roles that supplement our US workforce.”
Infosys pointed to earlier remarks by chief executive Salil Parekh, who said only a small portion of its US workforce requires visa sponsorship and that clients would see “without any disruption to their services today and into the future.”
Other global players have also adapted. IBM, which hired 88 per cent of its H-1B workers from outside the US, said it has already recalibrated its strategy. “Our focus remains on ensuring we have the right skills to meet clients’ evolving needs,” spokesperson Miki Carver said.
If implemented, the $100,000 fee could mark a decisive shift in how global tech firms access talent — accelerating offshoring, reshaping career paths for young professionals, and forcing companies to rethink long-standing reliance on the H-1B route.
Click here to add News18 as your preferred news source on Google. December 18, 2025, 11:01 IST
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