U.S. firms turn to India GCCs as Trump’s H-1B visa curbs tighten
BENGALURU, INDIA — United States companies are accelerating plans to shift critical operations to India as U.S. President Donald Trump’s recent crackdown on H-1B visas reshapes global workforce strategies, according to a report by Reuters, citing economists and industry insiders.
The move is expected to supercharge the expansion of India’s Global Capability Centres (GCCs), which already account for more than half of the world’s total.
Visa restrictions push work toward India GCCs
Trump hiked the cost of new H-1B visa applications to $100,000, up from $2,000 to $5,000, placing immense pressure on firms that have long depended on skilled foreign workers to fill talent shortages. Industry insiders say the move will prompt U.S. businesses to reassess their hiring and operational strategies.
“GCCs are uniquely positioned for this moment. They serve as a ready in-house engine,” said Rohan Lobo, partner and GCC industry leader at Deloitte India.
He noted that “plans are already underway” for shifts in sectors like financial services and technology, especially among firms tied to U.S. federal contracts.
U.S. firms reassess hiring and expansion strategies
While outsourcing has long been a cornerstone of global business operations, Trump’s visa curbs appear to be tilting the balance in favor of in-house alternatives, which allow firms to retain control of sensitive work.
As Lalit Ahuja, CEO of ANSR, explained: “There is a sense of urgency.” His firm has helped global companies, such as FedEx, Target, and Bristol-Myers Squibb, establish GCCs in India.
The shift may even result in “extreme offshoring” in some cases, according to Ramkumar Ramamoorthy, former managing director of Cognizant India. Tech players, including Amazon, Microsoft, Apple, and Google, which are among the largest H-1B sponsors, already have significant operations in India.
Still, not all companies are in a rush. Some are adopting a “wait and watch” approach, particularly with the looming HIRE Act, which could impose a 25% tax on U.S. firms outsourcing overseas. “For now, we are observing and studying, and being ready for outcomes,” said the India head of a U.S. drugmaker’s GCC.
Despite these uncertainties, analysts believe the demand for GCC services will rise sharply. As Nomura noted, “Lost revenues from H-1B visa-reliant businesses could be somewhat supplanted by higher services exports through GCCs.”
With India projected to host over 2,200 GCCs by 2030, worth nearly $100 billion, Trump’s visa policies may be accelerating what many industry leaders are calling a “gold rush.”
