Core Insights - The Trump administration's $100,000 fee for new H-1B workers could significantly impact the IT outsourcing and staffing industries, which have been targets for both political parties [1][2] - The fee represents the most substantial restriction on the employment of skilled foreign workers imposed by the Trump administration to date [1] Impact on Multinational Staffing Firms - The fee is expected to disproportionately affect multinational staffing firms that facilitate the hiring of H-1B workers, including Tata Consultancy Services, Infosys, and Cognizant Technology Solutions [2] - Nearly 90% of new H-1B hires at these firms from May 2020 to May 2024 were approved at US consulates, indicating a significant financial burden if the fee were applied [2] Financial Implications for Specific Companies - Infosys would face over $1 billion in visa charges, as more than 93% of its new H-1B hires (over 10,400 workers) would incur the $100,000 fee [3] - Tata Consultancy Services would be liable for the fee for 6,500 workers, representing 82% of newly approved H-1B workers [3] - Cognizant Technology Solutions would encounter the fee for more than 5,600 employees, or 89% of its new H-1B hires [3] Industry Response and Future Outlook - Legal challenges may temporarily block the fee, but industry experts anticipate a significant decline in visa demand and an increase in overseas placements [4] - Some firms, like Cognizant, report that the fee will have limited short-term impact on their operations due to a reduced reliance on visas for staffing [5] - Large tech and IT firms have historically dominated the H-1B program, claiming most of the 85,000 visa slots available annually [5]

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 ...

Core Insights - The Trump administration's new $100,000 fee for H-1B workers hired 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 largest restriction imposed on the employment of skilled foreign workers to date, leading to potential increases in costs for multinational staffing firms [2][3] Impact on Staffing Firms - Multinational staffing firms like Tata Consultancy Services, Infosys, and Cognizant are likely to be disproportionately affected, with nearly 90% of new H-1B hires at these companies approved at US consulates between May 2020 and May 2024 [2][3] - Infosys alone would face over $1 billion in visa charges due to the fee affecting more than 10,400 workers, while TCS and Cognizant would incur fees for 6,500 and 5,600 workers respectively [3] Changes in Visa Demand - Industry experts anticipate a steep decline in visa demand and a shift towards placing more workers overseas, regardless of potential legal challenges to the fee [4][9] - The IT consulting industry has already reduced new H-1B applications since 2024, and the fee is expected to accelerate this trend [9][10] Legislative Context - Both Republican and Democratic lawmakers have criticized the H-1B program, suggesting it serves as a low-cost alternative to American workers, despite H-1B employees being required to receive a prevailing wage [5][6] - The fee is seen as a measure to discourage companies from exploiting the system and to provide more certainty for American businesses seeking high-skilled workers [8][15] Future Hiring Strategies - Companies are likely to adapt their hiring strategies in response to the fee, with some major H-1B employers considering opting out of registering workers who require visa processing at consulates [14] - Projections indicate that the combination of the fee and a proposed lottery overhaul could reduce entries in the next lottery by 30% to 50% [15]