BusinessLine·2025-12-15 23:59Core Insights - The Trump administration's $100,000 fee for new H-1B workers from outside the US is expected to significantly impact the IT outsourcing and staffing industries, which have been targets for both political parties [1][2] - The fee is the most substantial restriction imposed on the employment of skilled foreign workers to date [1] Impact on Multinational Staffing Firms - Multinational staffing firms, such as Tata Consultancy Services, Infosys, and Cognizant, will be disproportionately affected, with nearly 90% of new H-1B hires at these companies approved at US consulates [2] - The fee could cost these firms hundreds of millions of dollars, with Infosys alone facing over a billion dollars in visa charges for more than 10,400 workers [3] Changes in Visa Demand and Offshoring Trends - Industry experts anticipate a steep decline in visa demand and an increase in the placement of workers overseas, as companies adjust their hiring strategies in response to the fee [4][10] - The IT consulting industry has already reduced new H-1B applications since 2024, and the fee is expected to accelerate the trend of offshoring jobs, particularly to India [10] Legislative and Legal Challenges - States and business groups, including the US Chamber of Commerce, are challenging the Trump fee, with a hearing scheduled to address its legality [9] - Many employers are proactively adjusting their hiring plans rather than waiting for the outcome of litigation [9] Changes in Hiring Strategies - Some of the largest H-1B employers may opt out of registering workers who require visa processing at consulates, indicating a potential industry-wide shift in hiring practices [14] - The combination of the new fee and proposed lottery changes could reduce entries in the next lottery by 30% to 50%, reshaping market behavior regarding H-1B applications [15]