Core Points - 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] - 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 lead to a steep decline in visa demand and an increase in the placement of workers overseas, as companies adjust their hiring strategies in response [4][10] Industry Impact - The fee will impose substantial costs on major IT firms, with Infosys facing over $1 billion in visa charges for more than 10,400 workers, Tata for 6,500 workers, and Cognizant for over 5,600 workers [3] - The IT consulting industry has already reduced new H-1B applications since 2024, and the new fee is likely to accelerate the trend of offshoring jobs [10] - Companies are expected to increase investments in countries like India, which is a primary source of H-1B workers, to access talent more cost-effectively [10] Hiring Strategies - Many employers are proactively adjusting their hiring plans in anticipation of the fee, with some planning to opt out of registering workers who would require visa processing at consulates [14] - The upcoming visa lottery in April will serve as an early indicator of how the fee and proposed lottery changes will affect the skill and wage levels of applicants [13] - The combination of the $100,000 fee and potential lottery reforms could reduce entries in the next lottery by 30% to 50%, reshaping market behavior regarding H-1B applications [15]

President Donald Trump’s $100,000 price tag for new H-1B workers hired from outside the US will have punishing effects for the IT outsourcing and staffing industries that have long been a target of both parties.The fee is the biggest restriction the Trump administration has imposed so far on employment of skilled foreign workers.A Bloomberg News analysis found it will have a disproportionate impact on multinational staffing firms that act as middlemen for companies seeking H-1B workers. Those middlemen incl ...