Offshoring to rise even as H-1B plan may hurt IT cos

A closer look at the numbers shows that total applications over this decade have fallen by almost 80 per cent. In 2015, 35,287 applications were filed, compared with 7,055 in 2025 (YTD), according to Xpheno.

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Post this fee, one thing is clear: Companies such as TCS, Infosys, Wipro, and others will need to further reduce their dependence on H-1B visas, though they have consistently done so over the last decade. Paying $100,000 for a single employee is costly enough, considering that the previous cost ranged from $2,000-5,000. Companies will therefore send staff onshore only for mission-critical projects where it is absolutely unavoidable.

“The Indian IT companies know that irrespective of whether the $100,000 fee is legally tenable or not, any remaining doubts about the policy direction the US administration is taking are gone. In that way, the smart firms should and will welcome the removal of uncertainty and double down on investment plans for building local capabilities in the US to remain relevant first, with the question of competitiveness coming later,” said Gaurav Parab, principal research analyst at NelsonHall, an industry research firm.