Trump’s H-1B Crackdown Spurs US Companies to Shift Work to India

US companies are increasingly relocating high-value operations to India's Global Capability Centres (GCCs) following President Donald Trump's tightening of H-1B visa rules. Analysts say this trend could accelerate India's emergence as a global hub for innovation and strategic business operations.

GCCs Evolving Beyond Tech Support

India, the world's fifth-largest economy, hosts over 1,700 GCCs, accounting for more than half of the global total. Originally focused on IT and tech support, these centres now handle finance, R&D, AI development, and even luxury car design.

"GCCs are uniquely positioned for this moment," said Rohan Lobo, partner and GCC industry leader at Deloitte India. He noted that US firms are reassessing workforce strategies in response to visa restrictions and rising H-1B costs, which have surged from $2,000-$5,000 to $100,000 per application.

Visa Restrictions Prompt Strategic Shifts

US senators recently reintroduced legislation to tighten H-1B and L-1 visa rules, prompting firms to consider moving AI, cybersecurity, analytics, and product development work to India. Lalit Ahuja, founder of ANSR, said, "There is a sense of urgency," citing clients such as FedEx, Target, and Bristol-Myers Squibb shifting operations to Indian GCCs.

Experts warn this may result in "extreme offshoring", as demonstrated during the COVID-19 pandemic, when key tech tasks were successfully performed remotely. Top H-1B sponsors like Amazon, Microsoft, Apple, Google, JPMorgan Chase, and Walmart already have significant Indian operations.

India's GCC Market Poised for Growth

Projections suggest India could host over 2,200 GCCs by 2030, with a market value nearing $100 billion. Some firms may also consider nearshoring to Mexico, Colombia, or Canada, depending on legislative developments. The proposed HIRE Act, which could levy a 25% tax on US outsourcing, may challenge India's low-cost advantage but is unlikely to halt the broader shift.

Opportunities and Challenges

India's $283-billion IT industry, contributing nearly 8% of GDP, stands to benefit from the movement of high-value work. However, companies remain cautious due to potential disruptions from evolving US service trade policies and visa curbs.

As US companies adapt to changing visa regimes, India's GCCs are expected to play a central role in global operations, combining domestic talent with strategic international functions.