US firms weigh shifting more work to India

Donald Trump's H-1B visa crackdown will hasten US firms’ shift of critical work to India, turbocharging the growth of global capability centres (GCCs) that handle operations from finance to research and development, economists and industry insiders say.

- SAI ISHWARBHARATH B HARIPRIYA SURESH RISHIKA SADAM

A smartphone showing company logos sits among the Indian and US flags and a passport.

(REUTERS)

The world’s fifth-largest economy is home to 1,700 GCCs, or more than half the global tally, having outgrown its tech support origins to become a hub of high-value innovation in areas from design of luxury car dashboards to drug discovery.

Trends such as growing adoption of artificial intelligence and increasing curbs on visas are pushing US firms to redraw labour strategies, with GCCs in India emerging as resilient hubs blending global skills with strong domestic leadership.

“GCCs are uniquely positioned for this moment. They serve as a ready in-house engine,” said Rohan Lobo, partner and GCC industry leader at Deloitte India, who said he knew of several US firms reassessing their workforce needs.

“Plans are already underway” for such a shift, he added, pointing to greater activity in areas such as financial services and tech, and particularly among firms with exposure to US federal contracts.

Mr Lobo said he expected GCCs to “take on more strategic, innovation-led mandates” in time.