Indian IT Firms Stare at $150–550 Million Hit as US H-1B Visa Fees Skyrocket

India’s top IT services companies are bracing for a significant cost surge following a steep hike in US H-1B visa application fees, which are set to rise to nearly $100,000 per application—around ten times the current level of $7,500–10,000. Based on last year’s sponsorship numbers, this increase could force industry giants like Tata Consultancy Services, Infosys, HCLTech, and Wipro to spend an additional $150–550 million each on immigration costs. The United States, which contributes up to 85% of their revenues and employs 3–5% of the industry’s active workforce onsite, remains a critical market, making the fee hike particularly impactful on delivery costs and profitability. While the change is expected to take effect for visa applications filed after the March 2027 lottery, companies are already evaluating strategies to limit the financial strain. Experts predict a rise in offshoring and nearshore delivery centers, along with higher subcontracting within the US, to offset expenses. Local hiring may also increase, though it will further push up overall costs. Analysts estimate the new costs could dent EBITDA margins by 7–15% across the $283-billion technology outsourcing sector, which is already grappling with a sluggish demand environment. Industry leaders warn that project renewals worth over $13 billion could face delays due to tighter availability of onsite talent. The higher costs may also disrupt visa renewals and employee mobility, though companies are expected to pass on a portion of the burden to clients or adopt alternative models such as remote contracting, offshore delivery, and gig-based hiring. Despite the looming financial hit, experts believe Indian IT firms will gradually adapt by leaning on offshore talent and reshaping their delivery mix to maintain competitiveness in the US market.