Trump Visa Curbs Push US Firms to Consider Shifting More Work to India

The world’s fifth largest economy is home to 1,700 GCC or more than half of global installments to become a center of high -valuable innovations in areas from the design of luxury automobile boards to the discovery of drugs.

Tendencies such as increasing artificial intelligence and increasing the sidewalks on visas are forcing US companies to re -draw their labor strategies, and GCCs in India emerge as flexible centers that blend global skills with strong indigenous leadership.

“GCCs are uniquely positioned for this moment. They serve as a ready -made engine,” said Joint and GCC industry leader Rohan Lobo in Deloitte India, said several US firms who re -evaluating labor needs.

“Plans continue,” he added for such a change in areas such as financial services and technology, and especially among the companies exposed to US federal contracts.

Lobo expects GCCs to “take more strategic, innovation -led tasks”.

US President Trump, this month, the cost of the new H-1B visa applications, the current $ 2,000 to $ 5,000 $ 100,000, by increasing the $ 100,000, added pressure to the US companies who trust the critical ability gaps to bridge the critical ability.

On Monday, the US senators re-introduced a bill to tighten the rules in the H-1B and L-1 workers’ visa programs, and targeted that they call gaps and abuse by major employers.

If Trump’s visa’s visa pavements remain indisputable, industrial experts expect US companies to shift to the GCCs of the US companies, product development, cyber security and analysis to India GCCs and choose to keep strategic functions on external use.

Increased uncertainty caused by recent changes gave a new driving force on the debate about the high -valuable work to the GCCs, where many companies are already busy with.

Lalit Ahuja, the founder and CEO of Ansr, who helps Fedex, Bristol-Myers Squibb, Target and Lowe’s GCCs, said, “There is an urgency.”

Reconstruction of India Strategies

Ramkumar Ramamoorthy, former General Manager of Cognizant India, showed that Covid-19 pandemin could be done anywhere in the key technology tasks, and in some cases he could lead to “overly offshoring”.

Big Tech, including US government data, Amazon, Microsoft, Apple and Google Parental Alphabet, was among the best sponsors of H-1B visas with Wall Street Bank JPMorgan Chase and retailer Walmart.

They all have major operations in India, but they did not want to comment because the problem was politically sensitive.

“More roles will be moved to India or companies will be close to the shore of Mexico or Colombia. Canada can also give advantage.” He said.

Even before the planning of a new election process for Trump’s new H1-B visa applications before and before the planning of a new election process to choose the better paid one, it was expected to host GCCs of more than 2,200 companies by 2030 and the market size approached $ 100 billion.

Ahuja, “This ‘golden hurry’ will only accelerate.” He said.

Inferences for India

Others were more suspicious, especially if the US companies may face 25% tax for the external resource use abroad, and bring a significant deterioration in India’s service exports.

“We are observing and working for now and we are ready for the results,” the President of the GCC of a US drug producer GCC. He said.

India-US trade voltage, visa pavements and India’s lower cost-cost advantage, and the proposed rental action threatened to strangle the flow of cross-border service flows.

While the CT industry of $ 283 billion, which contributes to approximately 8% of India’s GDP, may feel challenging, the increase in demand for GCC services may cushion.

“Lost revenues from enterprises relying on H-1B Visa, US-based firms, can be supported by high service exports through GCCs,” “Lost Revenues from Businesses relying on Visa,” H-1B Visa. ” He said.