>70% H1B holders are Indian – won't US tech just hire in India for remote work?

Ever since the Trump administration jolted the Indian IT sector by giving them the H-1B visa shock with a steep rise in the visa fees, there have been talks that it can possibly be a blessing in disguise for the ever-growing Global Capability Centres (GCCs) in India. 

Different and varied views are coming from different experts from the industry, with many of them feeling that this move might discourage IT talent from moving abroad and instead look for opportunities in India. With so much uncertainty in the United States, talented techies might prefer to remain in India, and this may, in turn, give the GCC segment a further push.

“With fewer employees being sent onsite to the US, companies are likely to move more work to their India-based GCCs to manage costs. This increases demand for engineering, product, R&D, and specialised digital roles within GCCs, strengthening their strategic relevance and creating more domestic employment opportunities. 

While on-site opportunities decline, the shift of work offshore will create steady demand for tech, analytics, and digital talent. Fresh graduates and mid-level professionals with specialised skills are likely to see more openings locally, while companies may focus on internal reskilling and lateral talent mobility to meet project needs,” pointed out Neeti Sharma, CEO, TeamLease Digital.

Sharma, however, at the same time feels that GCCs will need to remain relevant and expand their scope of work and should be ready to take on more complex projects. “The GCCs will need to invest in specialised skills like AI, cloud, and cybersecurity, and that is how they will be able to improve their value with their parent organisation,” added Sharma.

Experts point out that the GCCs are likely to see increased strategic importance, with more projects being delivered from India rather than the US. Hiring will remain steady, with emphasis on specialised skills and digital capabilities. While some short-term adjustment and margin pressure are possible, the segment is expected to consolidate its role as a key hub for global operations, innovation, and talent development.

“The hiring scenario in India’s tech industry will undergo a metamorphosis with many IT organisations. Professionals start looking at GCC as a preferred employer. GCCs will also look at hiring more from different technology organisations with lateral talent, and this will tilt the favour of hiring in the form of GCCs coming at large. At the same time, it is a golden opportunity for GCCs to not only look at cost arbitrage, but also as an innovator and value arbitrage player with focus on R&D, IP creation, much more AI-driven and automation-driven work,” pointed out Sameer Dhanrajani, CEO at 3AI and AIQRATE.

Interestingly, Indians account for around 71 per cent of all approved H-1B applications, so any hike in visa fees directly impacts talent flow to the U.S. But it’s not just about cost. India has rapidly improved its ease of doing business and offers a large pool of talent in emerging technologies such as AI, Data, Cloud, and Cybersecurity. 

GCCs already employ close to 2 million people in India, contributing over $46 billion to exports, and this shift strengthens their ability to take on more global work while accelerating execution and product innovation from India.

“Hiring is likely to gradually shift toward India over the coming months. Companies may slowly reduce overseas postings while gradually expanding remote hiring and offshore delivery, particularly for technology-led roles. Client-facing positions could continue to remain abroad, but the execution backbone—including AI, Cloud, Cybersecurity, and data functions—may increasingly deepen in India, potentially creating more opportunities for engineers and young professionals entering the GCC ecosystem. Additionally, with more students choosing to pursue higher studies in India rather than the U.S., talent availability is expected to steadily grow over time,” remarked Kapil Joshi, CEO – IT Staffing, Quess Corp.

Market experts point out that the H1-B policy changes will accelerate the strategic importance of GCCs. As mobility to the U.S. becomes more expensive, enterprises are doubling down on their capability centres in India and other talent-rich markets.

“GCCs are shifting from transactional cost centres to outcome-driven hubs that anchor product engineering, cloud modernisation, and AI-native delivery. In the future, GCC hiring in India will rise in both volume and complexity. Enterprises will bring more engineering and automation work into their centres, while also investing in talent with specialised skills in data, cloud, and AI. This isn’t just about adding headcount; it’s about rebalancing roles. Junior and mid-level engineers will grow in number, but equally important will be domain experts, platform engineers, and automation specialists who multiply productivity,” remarked Anitha Sarathy, India Head of People and Culture at Encora Inc.

As per experts, H‑1B approvals show where the demand gaps are: 64 per cent of approved beneficiaries in FY2024 were in computer-related occupations, reflecting concentrated needs in systems, data, and software that firms struggle to fill from the U.S. market alone. On the other side, India has the talent, including Indians currently on H-1B and hence experience of working in the US market. It is believed that the challenge will prompt firms to ramp up investment in India hubs and explore nearshore alternatives.

“We anticipate model shifts and more selective sponsorships, rather than status‑quo rotations. While Indian IT and GCC exporters may see near‑term disruption, this will be offset by higher offshoring intensity and re-architected delivery models. By materially raising onshore costs and friction, the new H‑1B fee will accelerate demand for India-based capability centres. We expect the delivery mix to shift further offshore and into GCCs, as organisations look to protect margins and ensure talent continuity. From a talent lens, enterprises will need to double down on India’s deep pools in AI/ML, cloud, data engineering, and cybersecurity, while rebalancing location strategies toward Tier‑2 cities to optimise cost, capacity, and retention,” Roop Kaistha, Regional Managing Director-APAC, AMS, told THE WEEK.

Experts point out that India is currently in the middle of a demographic dividend, with a talent window available for the next several years. This coincides with the growth momentum of GCCs, which already account for nearly 60 per cent of engineering campus offers and are expanding into high-value domains like AI, analytics, and deep-tech.

“With hiring in India costing around 70 per cent less than in the US, GCCs are likely to prioritise native talent, particularly for mid- and senior-level strategic roles. Post-COVID, remote work has been validated as a scalable operating model in the IT sector. This reduces the need for onsite presence in the US, allowing GCCs to manage advanced work streams from India and tap into a wider distributed talent pool beyond traditional hubs. Despite these positives, there are reasons for initial caution. Regulatory scrutiny remains a challenge. Global economic jitters, potential tariff scrutiny on offshore operations, and the unpredictability of the Trump administration—including possibilities of new offshoring taxes like the proposed 25 per cent excise under the HIRE Act—could temper near-term investments. While consensus strongly favours growth and sectoral benefits for GCCs, the evolving policy environment means a wait-and-watch stance. The long-term trajectory looks positive, but near-term dynamics will need careful navigation,” said Sandeep Panat, Founder – Wizmatic.