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H-1B fee shock: SaaS and AI startups rethink hiring strategy as $100,000 levy threatens talent flow

Internet

Internet · 1d ago

H-1B fee shock: SaaS and AI startups rethink hiring strategy as $100,000 levy threatens talent flow

Indian SaaS and AI startups are rethinking their US hiring and expansion plans after Washington proposed a steep $100,000 annual H-1B visa fee. The move could significantly raise the cost of relocating engineers and managers to the US, the largest market for most software startups. Founders say this will impact the traditional route of sending Indian talent to the US and may push companies to hire locally or in alternative markets. Prodigal’s CEO Shantanu Gangal noted that the ROI on US education and relocation will no longer make sense for many students, while SuperOps’ CEO Arvind Parthiban said startups will now prioritize hiring where it’s most cost-effective, not necessarily in the US.

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The U.S. government's proposed $100,000 fee on H-1B visa applications may redirect global tech talent back to India, potentially bolstering its AI, SaaS, and deep-tech sectors. The fee could cause a reverse brain drain, as U.S. firms avoid high costs of sponsoring new hires. Indian IT companies face increased costs, potentially affecting project margins and timelines. Meanwhile, several Indian techies explore alternative visas or remote work options in response to the potential changes.

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Economic Times

Economic Times · 23h ago

Hiring strategy of Indian AI startups in US goes for toss - The Economic Times

Indian AI startups are reassessing their US hiring strategies due to the proposed $100,000 H-1B visa fee by the Trump administration. While some startups are rethinking hiring plans, others see minimal impact. Many founders have moved to the US to access better talent and investment opportunities. However, due to visa uncertainties, some plan to focus on hiring in India instead. The increased fee could significantly affect startup growth strategies, given the high cost.

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Internet

Internet · 2d ago

Trump imposes $100K H-1B visa fee from Sept 21; could impact Indian tech workers

US President Donald Trump has signed an executive order imposing a $100,000 fee for each H-1B visa application, effective September 21, 2025, for 12 months. The move aims to curb “systemic abuse” of the program, encourage hiring of American workers, and reduce reliance on foreign talent. Indians, who account for over 70% of H-1B holders, will be most affected — renewals will become costly, job mobility limited, and many may consider returning to India or moving to Canada, the UK, or UAE. Immigration lawyer Sophie Alcorn warns this creates major uncertainty for Indian professionals. The order is expected to face legal challenges, as critics question its basis and its impact on US tech companies’ ability to hire specialized talent.

Tremors in Tech Inc as Trump rocks H-1B dream - The Economic Times

Economic Times

Economic Times · 1d ago

Tremors in Tech Inc as Trump rocks H-1B dream - The Economic Times

The Indian government is monitoring the impact of a new US order imposing a $100,000 H-1B visa sponsorship fee, mainly affecting Indian professionals. Existing visa holders are exempt, focusing on travelling concerns. Advocacy groups plan legal challenges. Leading US firms advised employees on potential disruptions. India's IT firms, having reduced reliance on H-1B visas with local hiring, expect minimal business impact. The Indian ministry is addressing stranded citizens' issues, amidst increased visa scrutiny.

Tech talent ‘wapsi’ may boost India’s AI, SaaS, deep-tech - The Economic Times

Economic Times

Economic Times · 23h ago

Tech talent ‘wapsi’ may boost India’s AI, SaaS, deep-tech - The Economic Times

The proposed $100,000 H-1B visa fee by the U.S. may lead to a significant return of Indian tech talent, boosting the local AI, SaaS, and deep tech sectors. This move could result in more U.S.-based Indian professionals and graduates building careers in India, transforming the country into a hub for innovation rather than just outsourcing. This talent influx might enable India to replicate the U.S. model of combining talent density with capital to create globally competitive companies.

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Economic Times

Economic Times · 1y ago

Trump 2.0 to threaten H-1B plans of tech companies

The possibility of a second Trump administration has raised concerns about the anti-immigration agenda and its impact on the H-1B visa program. The proposed fee hikes for H-1B visas are causing alarm in the tech industry, with registration fees set to increase by 2,050% and application fees by 70% from 2025. There is uncertainty about the future of immigration policies under Trump, as his first administration saw an increase in H-1B visa denial rates. The fee increases will affect the cost of bringing in talent, particularly when there is already a high demand for skilled workers.

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Economic Times

Economic Times · 1d ago

Elon Musk, Satya Nadella, Sundar Pichai, other H-1B beneficiaries silent on new rules - The Economic Times

Several tech leaders, including Elon Musk, Satya Nadella, and Sundar Pichai, who've benefited from the H-1B visa system, remained silent on new U.S. rules imposing a $100,000 fee for H-1B visa petitions. The rule aims to restrict entries to highly skilled individuals, affecting many in Silicon Valley, particularly Indian tech professionals. This move by the Trump administration drew criticism, with Musk previously expressing strong opposition to changes in the H-1B policy.

Trump’s Visa Blow To Indian Tech, Jar’s FY25 Pot & More

Inc42 · 15h ago

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The Trump administration has introduced a significant $100,000 annual fee for foreigners on H-1B visas, impacting a large number of Indian workers, as they make up over 70% of all H-1B visa recipients. This move raises questions about the future prospects for Indian talent in the U.S., signaling either the end of an era or the beginning of a new phase for Indian professionals seeking opportunities abroad.

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Livemint

Livemint · 8m ago

Indian IT services companies shed reliance on H-1B visas

Indian IT services companies are reducing reliance on H-1B visas as their hiring in the U.S. increases. The H-1B visas, critical for employing foreign nationals in specialized roles, saw a decline in numbers over the decade, with companies like Infosys and Cognizant leading local hiring efforts. Despite mitigated vulnerability, potential visa restrictions and increased salary requirements could impact costs. Industry advocates highlight the essential role of H-1B workers in bridging U.S. skills gaps.

IT facing $150-550 million in immigration bill - The Economic Times

Economic Times

Economic Times · 22h ago

IT facing $150-550 million in immigration bill - The Economic Times

India's leading IT firms are facing an additional $150-$550 million in H-1B visa costs due to a recent surge in U.S. immigration fees, affecting profitability and prompting them to explore alternatives like offshoring and local hiring. The significant fee increase to $100,000 may lead to higher delivery costs and subcontracting within the U.S., impacting margins and project timelines. Analysts predict a 7-15% hit on earnings before interest, tax, depreciation, and amortization (EBITDA).

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