Core Points - The new H-1B visa regulation imposes a one-time fee of $100,000 for new applications, significantly impacting Indian IT outsourcing giants like Infosys and Wipro, and raising concerns among U.S. tech companies and employees [1][4][12] - The regulation is seen as part of a broader anti-immigration trend and may exacerbate tensions in U.S.-India relations, especially as an Indian delegation visits the U.S. for trade negotiations [4][12][13] - The increase in costs could lead U.S. companies to expand their Global Capability Centers (GCC) in India, countering the intended goal of protecting domestic jobs [4][14][17] Company Impact - Infosys and Wipro are expected to face significant profit reductions due to the new fee, with Infosys alone potentially incurring an additional cost of at least $250 million for the 2024 fiscal year based on its 2,504 initial H-1B approvals [12][13] - The stock prices of Infosys and Wipro fell by 3.4% and 2.1% respectively following the announcement of the new regulation [12] - Major U.S. companies like Microsoft, Amazon, and Google, which heavily rely on H-1B visa holders, have advised their employees to remain in the U.S. to avoid the new fees [9][10] Industry Trends - The H-1B program, established in 1990, has been crucial for U.S. tech companies and IT outsourcing firms, with Indian nationals making up 72.3% of H-1B beneficiaries as of September 2023 [8][12] - The new regulation may push U.S. companies to accelerate local hiring and expand their delivery centers in India, as they seek to mitigate the impact of increased operational costs [14][17] - The Indian IT industry, valued at over $283 billion, derives approximately 57% of its revenue from the U.S., making it particularly vulnerable to changes in U.S. immigration policy [12][13]