How U.S. Visa Policy Changes Are Reshaping Indian IT Jobs in 2025
Written by: Rajat Bhardwaj
The Indian IT sector has long relied on the United States as its largest client market. From TCS to Infosys to Wipro, most major Indian IT companies earn 50–60% of their revenues from U.S. clients. For decades, the H1B visa program has been the bridge connecting Indian tech talent with American enterprises.
But in September 2025, a major disruption arrived: the U.S. government announced a $100,000 fee on new H1B visa applications. This move has sent shockwaves through the industry, and its ripple effects are already being felt in hiring plans, project structures, and the career aspirations of thousands of Indian IT professionals.
Let’s break down what’s happening, why it matters, and how both companies and workers can adapt.
What Changed in the U.S. Visa Policy?
- $100,000 fee for new H1B petitions starting September 2025.
- Renewals are unaffected, but first-time sponsorships now come with huge costs.
- U.S. authorities are prioritising high-value, high-skill roles under stricter scrutiny.
For Indian IT service providers that file thousands of petitions each year, this is more than a fee—it’s a strategic shift in how business will be done.
Immediate Impact on Indian IT Companies
Rising Deployment Costs
Sending employees onsite is now prohibitively expensive. A single project could see costs rise by millions of dollars if multiple visas are needed.
Contract Restructuring
The traditional onsite-offshore delivery model will tilt heavily towards offshore. U.S. clients who demand in-person presence may push back.
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Selective Sponsorship
Instead of junior or mid-level staff, companies will now reserve visas for niche experts or client-facing roles.
Market Jitters
The Nifty IT index already dipped after the announcement, reflecting investor worries about margin pressure and slowed growth.
Long-Term Shifts in the Indian IT Sector
- More Offshore Delivery from India
Strengthening home-base operations will reduce reliance on visas. - Expansion of Global Capability Centers (GCCs)
U.S. companies will build more captive centers in India, creating local jobs. - Nearshoring
Indian firms may expand into Canada, Mexico, or Latin America to serve U.S. clients without visa hurdles. - Local Hiring in the U.S.
Instead of sending Indian engineers, firms will recruit American talent for onsite needs.
Impact on Indian IT Professionals
For thousands of engineers dreaming of U.S. assignments, the H1B fee hike changes the game.
- Onsite roles shrink → Only critical skillsets will make the cut.
- Specialisation pays off → AI, data engineering, cybersecurity, and cloud skills are more likely to qualify.
- Remote-first careers → Advancement is possible without moving abroad, thanks to hybrid delivery.
- Alternative markets → Canada, UK, and Australia may become more attractive options for global exposure.
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Challenges Ahead
- Margin Pressure: Costs may not be fully absorbed by clients.
- Talent Pipeline Issues: Mid-level managers may lose U.S. exposure.
- Uncertainty: Frequent policy changes in the U.S. make planning risky.
Opportunities Hidden in the Disruption
- Upskilling Boom: Indian professionals will reskill aggressively in future-proof domains. If you’re planning to reskill, check out the guide on top tech skills to learn.
- Stronger Indian Ecosystem: With more delivery from India, high-paying roles will grow domestically.
- Global Remote Work: Engineers can still work on U.S. projects without relocation.
- GCC Growth: More multinational companies will establish bases in India.
Conclusion
The impact of U.S. visa policy 2025 on the Indian IT sector goes far beyond higher costs. It forces companies to reimagine their operating models and professionals to rethink career paths.
While the H1B visa impact on Indian IT jobs creates short-term pain, it also pushes the industry toward a future of stronger domestic ecosystems, global remote opportunities, and more specialised career growth.
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For Indian IT, the message is clear: the U.S. onsite dream is evolving, but the future of tech work is still bright—just different.
FAQs
Q1. What is the new H1B visa fee in 2025?
The U.S. has introduced a one-time $100,000 fee for all new H1B visa petitions filed from September 2025 onwards.
Q2. How will the H1B fee hike impact Indian IT companies?
Indian IT firms will face higher costs, restructure contracts, and shift more delivery offshore. Many will also focus on hiring locally in the U.S. or expanding nearshore hubs.
Q3. Does the H1B fee hike affect renewals?
No. The $100,000 fee applies only to new H1B petitions, not to renewals or existing visa holders.
Q4. What does this mean for Indian IT professionals?
Onsite U.S. opportunities will shrink and become highly selective. Professionals with specialised skills in AI, cloud, or cybersecurity will have better chances, while others may find more opportunities in remote work or alternate markets.
