The way tech companies build their teams is changing — fast. For years, U.S. firms relied on outsourcing and H-1B visas to fill skill gaps in fields like data, AI, and software. But new visa reforms, including a steep $100,000 application fee, are forcing a rethink. Suddenly, it’s not just about who gets hired, but where that work happens. And that’s reshaping the global tech job landscape in real time.
The result? A major geographic reshuffle of tech talent — from outsourcing (sending work abroad) to onshoring (bringing it home), with nearshoring (moving work to nearby countries) emerging as a new middle ground.
The H-1B Visa Reform: What Changed?
The H-1B visa allows U.S. companies to hire highly skilled foreign professionals, particularly in fields like software development, data analytics, and engineering.
In September 2025, the U.S. government introduced a $100,000 fee for every new H-1B visa application — in addition to existing processing fees. The new rule applies only to new petitions, not to renewals or current visa holders.
The change is part of a broader effort to discourage what critics describe as system abuse, where companies fill roles that could be offered to domestic talent. It also introduces a weighted lottery system, favoring applicants with higher wages — a move intended to attract top-tier talent rather than lower-cost labor.
Why These Changes Matter
For many years, tech companies — especially startups and IT service providers — relied on H-1B visas to fill critical roles when local talent was scarce. But the sudden increase in costs and tighter eligibility criteria are changing hiring behavior in noticeable ways.
1. The Cost Barrier
A $100,000 fee dramatically raises the total hiring cost. Smaller firms and startups may find it unaffordable to bring mid-level or entry-level foreign workers to the U.S.
As a result, many companies are looking for alternatives, including:
- Hiring local U.S. workers (onshoring)
- Building offshore or nearshore teams
- Expanding Global Capability Centres (GCCs) in countries like India
2. The Weighted System
The revised system prioritizes high-salary applications, meaning companies can no longer rely on H-1Bs for cost savings. Instead, they’ll use them for senior, specialized, or research roles that justify higher wages.
This is prompting a redistribution of work — high-value functions may stay in the U.S., but execution-level roles are being moved offshore or nearshore.
3. Historical Data on Visa Restrictions
Research shows that when the U.S. limits H-1B visas, companies don’t stop hiring — they simply move the work elsewhere. A study by the National Bureau of Economic Research (NBER) found that a 1% drop in available H-1B visas led to a 12–16% rise in jobs at company branches outside the U.S. In short, tighter visa rules often push firms to relocate roles overseas instead of filling them locally.
How This Shift Affects the Tech Workforce
The H-1B visa reforms are creating two major trends in tech hiring:
1. A Move Toward Onshoring
As visa costs increase, companies are reconsidering how much they depend on foreign workers.
Many are hiring local U.S. talent for roles that previously went to H-1B candidates — particularly in data analytics, cybersecurity, and software development.
This benefits domestic job seekers but also puts pressure on U.S. firms to address the ongoing skills gap — a challenge, since 76% of employers globally report difficulty filling tech roles.
2. The Rise of Nearshoring and GCCs
At the same time, U.S. companies are expanding nearshore operations in Mexico, Canada, and South America — where collaboration is easier due to proximity and time zone alignment.
India continues to be a major beneficiary. Its GCC ecosystem now employs over 2 million professionals, providing not just support work but also advanced functions like AI model training, cloud management, and analytics.
Conclusion
The H-1B visa reforms are reshaping the tech workforce, pushing companies to reconsider outsourcing, onshoring, and nearshoring strategies. While the changes aim to protect U.S. jobs, they also highlight the ongoing skills gap and may encourage firms to move certain roles abroad. At the same time, local talent stands to benefit from new opportunities, upskilling initiatives, and increased domestic hiring. Ultimately, success in this evolving landscape will depend on flexibility — for both companies and professionals navigating the global tech market.