H-1B visa fee hike may accelerate shift of US tech jobs to India: Economist
Summarized and contextualized by DistantNews.
At a glance
- A proposed additional fee of over $100,000 on H-1B visa petitions could accelerate the outsourcing of US tech jobs to India.
- Economist Santosh Mehrotra suggests companies may use Global Capability Centres (GCCs) in India to access talent without relocating workers.
- This potential fee hike aims to curb the shift of technology work from the US to India.
A substantial proposed fee increase for H-1B visa petitions in the United States could hasten the migration of American tech jobs to India, according to economist and former UN advisor Santosh Mehrotra.
Mehrotra explained that the additional fee, reportedly amounting to $103,265 per petition, might compel companies to increasingly utilize Global Capability Centres (GCCs) in India. This strategy would allow businesses to tap into Indian talent pools without the logistical and financial complexities of transferring employees to the U.S.
The economist's remarks, made in an exclusive conversation with ANI, highlight a potential unintended consequence of the proposed visa fee hike. The measure, intended to manage the flow of foreign tech workers, could inadvertently incentivize a greater shift of technology work to India-based centers.
The proposed USD 103,265 additional fee on H-1B visa petitions could accelerate the shift of technology work from the US to India-based Global Capability Centres (GCCs), as companies look for ways to access Indian talent without moving workers to the US
Originally published by Khaleej Times. Summarized and contextualized by our editorial team with added local perspective. Read our editorial standards.