The recent hike in H-1B visa fees by the United States has raised concerns across the global tech industry. However, according to the National Association of Software and Service Companies (Nasscom), the impact on Indian IT firms—which are among the largest users of these visas—will be marginal.
Understanding the H-1B Visa Fee Hike
The H-1B visa program allows US companies to hire highly skilled foreign workers, particularly in technology. The fee revision, introduced by the US administration, includes:
-
Higher filing charges for H-1B applications
-
Increased processing costs for visa extensions and renewals
-
Additional compliance-related expenses
The changes are aimed at tightening the system and generating more revenue for US immigration services.
Nasscom’s Assessment
Nasscom stated that while Indian IT companies are significant users of the H-1B program, the fee hike represents only a small fraction of their overall operating costs. For large IT exporters, the additional expense will not materially alter business models or impact profitability in a major way.
A spokesperson noted, “The incremental costs are manageable, and most companies have already factored such regulatory changes into their operational planning. The broader issue remains ensuring continued access to skilled talent in the US market.”
Wider Concerns Beyond Costs
Industry experts highlight that while the financial impact is marginal, the bigger concern lies in:
-
Uncertainty of US immigration policies
-
Processing delays affecting project timelines
-
Talent availability challenges in critical domains such as AI, cloud computing, and cybersecurity
Indian IT firms have been increasingly adopting nearshore models, hiring locally in the US, and expanding global delivery centers to reduce reliance on work visas.
Nasscom’s clarification provides relief to investors and stakeholders worried about the immediate consequences of the H-1B fee hike. While the financial burden may be minimal, the long-term challenge remains ensuring smooth mobility of skilled professionals and maintaining India’s strong position in the US IT services market.
