US companies eye India for offshore operations amid H-1B fee surge

US companies are increasingly turning to India for offshore operations following President Donald Trump's sharp increase in H-1B visa fees, tapping the global capability centres (GCCs) in the country, industry experts and economists say. India, which hosts over half the world's GCCs, is evolving into a hub for high-value tasks like AI and drug discovery, according to a Reuters report.

US President Donald Trump signed an executive order earlier this month and imposed a $100,000 (around Rs 88.6 lakh) fee on new H-1B applications for skilled foreign workers, nearly 70 times higher than the previous fee, which ranged from $1,500–4,000 (Rs 1.3-3.5 lakh).

The Trump administration's focus on restricting H-1B visas, citing concerns over job displacement and national security, has caused significant confusion and disruption in the industry.

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, news agency Reuters reported.

Indian GCCs, offering a blend of global expertise and strong local leadership, are emerging as vital hubs for critical business functions.

Rohan Lobo, partner and GCC industry leader at Deloitte India, said India's GCCs poised to drive US firms' strategic shift.

"GCCs are uniquely positioned for this moment. They serve as a ready in-house engine," Reuters quoted Rohan Lob as saying.

Lobo noted that several US firms were already reassessing their workforce needs and planning shifts to India.

"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, Reuters reported.

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