US H-1B Visa Fee Hike Could Spark Offshoring Surge

In response to the US government's recent decision to impose a $100,000 annual fee on H-1B visa applications, industry veteran Mohandas Pai expressed concerns about its impact. Speaking on Saturday, Pai stated that the move would likely curb fresh applications and push companies to accelerate offshoring in the near future.

The H-1B visa program, designed for skilled foreign workers, has been under scrutiny. President Trump emphasized that it has been misused to replace American workers with cheaper labor. However, Pai highlighted that top H-1B employers offer average salaries exceeding $100,000, undermining claims of importing cheap labor.

While the immediate effect might be limited to new applications, Pai believes the long-term outcome could be an increased shift towards offshoring due to elevated costs and talent shortages. Data from the USCIS indicates significant reliance on H-1B visas among leading tech firms, such as Amazon and Microsoft, further emphasizing the potential implications of the fee hike.