How America Benefited from Offshore Talent in the Past
For years, America benefited enormously from offshore talent. Tech start-ups — many of which are now global giants — relied heavily on engineers and developers from countries like India and Pakistan. These professionals delivered long hours of work at a fraction of the cost of local hires, helping build the very platforms that dominate today’s digital economy. Offshore talent played a crucial role in “making America great then.”
In America’s pursuit of greatness, professionals from developing countries left their homelands to seize opportunities abroad. These engineers and specialists contributed immense value to the U.S. economy, often at the cost of a brain drain back home. While America reaped the rewards, developing countries lost some of their best and brightest minds.
Why the New Visa Fees Hit India the Hardest
Now, however, the global talent pool has matured. Offshore engineers are no longer just cost-effective resources; they have become centres of innovation themselves. In response, the Trump administration introduced steep hikes in H1B visa fees — reportedly as high as $100,000 for new applicants (White House Proclamation, Sept 2025). The logic is simple: make it financially impractical for U.S. companies to continue hiring talent from abroad. Importantly, the change does not affect current H1B holders, preventing sudden disruptions that could cripple large tech firms.
Many of today’s tech giants are led by executives of Indian origin. Satya Nadella heads Microsoft, Sundar Pichai leads Google, and Arvind Krishna is at the helm of IBM, to name a few. And these are only the CEOs — the workforce numbers are even more striking. According to LinkedIn company data, over 70% of H1B visas in recent years were awarded to Indian professionals, with thousands employed across Silicon Valley.
This is precisely why the visa fee hikes will hit India the hardest. With such a deep reliance on offshore professionals, particularly from the Indian subcontinent, American tech companies will find it increasingly expensive to maintain the same hiring practices. Many Indian policymakers view the move as a continuation of Trump’s broader strategy of applying pressure on India, shaped in part by its relationships with Russia and China. Others argue that this interpretation may be reading too much into it, and that the policy is simply a reflection of his long-standing goal: to empower the American workforce above all else.
How Will This Affect Other Countries?
While India will be hit the hardest, the impact will not be limited to Indian professionals alone. Countries such as Pakistan, Bangladesh, and the Philippines — all of which supply IT and engineering talent to the U.S. — may also feel some ripple effects. However, their numbers in the H1B program are far smaller compared to India, so the shock will be less pronounced.
For many other countries, the effect will be almost negligible. Eastern European nations like Poland or Ukraine, for example, serve U.S. companies largely through remote outsourcing models rather than the H1B visa channel. Similarly, Latin American countries such as Brazil and Mexico have benefitted more from nearshoring arrangements than from sending workers through visas.
In short, the $100,000 fee is designed to target where the concentration of H1B workers is highest. That makes India the primary focus, with only limited fallout for other regions.
What This Means for U.S. Tech Companies
From a policy perspective, this approach reflects continuity rather than contradiction. Just as America once encouraged companies to look abroad to fuel its growth, it is now steering them to focus inward. The objective remains the same — to “make America great now.”
But for U.S. tech companies, the implications are complex. Rising visa costs will increase pressure on recruitment budgets, reduce access to global expertise, and potentially slow down innovation. While some businesses may absorb the costs, many will start looking for alternative solutions to maintain competitiveness.
One such solution is building strong offshore teams without relying on the U.S. visa system. By partnering with specialised offshore development firms, American companies can continue to access world-class talent, reduce costs, and bypass visa restrictions altogether.
The Way Forward
We have dissected what the H1B visa fee hike means and its impact on both the U.S. and other countries. Now let’s explore possible paths forward for different players in the tech ecosystem.
Possible Way Forward for U.S.-Based Tech Companies
Since the visa fee hike does not affect renewals and applies only to new petitions, there will be no immediate disruption for existing H1B workers. Current operations can continue smoothly in the short term. However, as companies look to scale and hire new talent, they will need to adjust their strategies.
Tech Giants Like Google, Amazon, Apple, and Microsoft
Large tech companies have the financial muscle to afford local U.S. talent and absorb higher costs. Many already operate extensive back offices in India, the Philippines, Latin America, and Eastern Europe, where they can continue tapping into offshore talent without relying on U.S. visas.
Additionally, many global players are now considering expanding to business-friendly regions such as the UAE, which offers tax advantages few countries can match. This could accelerate the UAE’s rise as a major global tech hub.
Tech Startups
For startups, the challenge will be far more significant. Growing companies that are finally generating revenue and looking to expand teams often rely heavily on offshore developers from countries like India, Pakistan, and the Philippines because of the cost advantages. Compared to U.S. salaries, offshore professionals can deliver the same (or better) results at a fraction of the expense.
It’s also worth noting that many U.S.-based startups are founded by entrepreneurs of foreign origin. They choose America for the exposure, investment opportunities, and ecosystem support — but their operational backbone often depends on affordable offshore talent. For these companies, the new policy creates additional barriers to scaling quickly.
Work on Resource Augmentation
For startups and growing companies, shifting to a resource augmentation model can be the smartest path forward. Around the world, countless agencies are ready to deliver premium-quality work at costs far lower than in the United States. By tapping into this model, businesses can scale quickly without being restricted by visa policies or skyrocketing local hiring expenses.
At Forrentech, we’ve partnered with over 50 startups in the last five years. Many of these ventures have gone on to establish themselves as leaders in their industries, with some even receiving industry awards for innovation and growth. Our experience shows that resource augmentation doesn’t just cut costs — it empowers founders with affordable, flexible, and scalable solutions while enabling agencies like ours to create sustainable growth on our side of the world.
I’ve often highlighted on LinkedIn and in earlier blog posts that resource augmentation is truly a win–win model. It allows global founders to access world-class talent without the barriers of visa costs, and it helps agencies like Forrentech reinvest in talent development, creating a cycle of growth that benefits both sides.
Way Forward for Developing Countries
With nationalism on the rise across many parts of the world, the time has come for developing nations to focus on building businesses and opportunities within their own borders. Talent produced at home should increasingly contribute to the growth of their own economies, rather than primarily fuelling the success of foreign markets.
For tech professionals in particular, this means shifting from being predominantly service providers to also becoming product creators. By developing and scaling homegrown platforms, apps, and technologies, countries can strengthen their own innovation ecosystems and reduce dependency on external markets.
The service industry will always remain an important pillar — and it cannot be ignored altogether. However, combining product innovation with service expertise is the true need of the hour. A balanced product–service mix not only diversifies economies but also ensures that local talent plays a direct role in making their own countries stronger.
