H-1B fee, HIRE Act accelerate global shift in tech jobs
UTTAR PRADESH, INDIA — Experts say the combined effect of the new H-1B visa fee and the proposed HIRE Act will reshape the global technology labor market, prompting companies to reconsider where and how they hire skilled talent, according to a report from Financial Express.
Visa fee hike drives tech firms to global hiring
When United States President Donald Trump announced a new $100,000 fee for H-1B visas, it sent shockwaves through the tech sector.
The visa program, long considered a cornerstone of the U.S. technology industry’s access to global expertise, suddenly became an expensive proposition. For many companies, the math no longer adds up.
“About 25% of tech companies are already outsourcing as a strategy to stay competitive,” said Nicole Sahin, CEO of Globalization Partners, in an interview with Business Insider.
Instead of relocating talent to the U.S., she added, firms are now offering “global salaries and letting employees work from wherever it makes sense.”
Tech firms like Amazon, Meta, and Oracle, some of the largest recipients of H-1B approvals, are reportedly exploring remote-first strategies.
Workers who once moved to California for tech jobs are now returning to their home countries while keeping their positions remotely, stretching their pay further in lower-cost economies.
Even with some firms enforcing return-to-office mandates, remote work has quietly become the default, especially for startups seeking to attract top-tier global talent.
“For the highly specialized talent in the world of AI, there are probably like 500 people in the country that understand how to build an LLM model from the ground up. We don’t have enough talent domestically to fill some of those roles,” said Somak Chattopadhyay, founder of Armory Square Ventures, in an interview with CNBC.
Tax-heavy HIRE Act may backfire on U.S. outsourcing goals
At the same time, the HIRE Act, introduced in the U.S. Senate in September 2025, aims to curb outsourcing by imposing a 25% excise tax on payments U.S. companies make to foreign service providers.
These include consulting, IT, and design services. The measure would make outsourcing pricier and channel the revenue into domestic job training programs.
However, experts warn that even such policies may not stop the wave of offshoring.
Devashish Mitra, a professor at Syracuse University, told Business Insider that offshoring to countries like India “could cost a quarter—or even less—than hiring in the US,” making it financially attractive despite potential penalties.
Outsourcing hubs in India, Philippines gain new momentum
For the global outsourcing industry, particularly in countries like India and the Philippines, these developments may usher in a new era of opportunity.
As U.S. firms seek cost-efficient solutions amid policy headwinds, offshore service providers could see a surge in demand.
In essence, the combination of the H-1B fee and the HIRE Act could unintentionally accelerate the globalization of work—pushing companies to outsource or operate remotely even as U.S. policymakers try to keep jobs domestic.
This shift may mark a rebalancing of global tech power, with long-term effects on innovation hubs, pay structures, and migration patterns across continents.
