India’s GCCs stand resilient amid US H-1B fee increase

The weekend announcement made by the US administration regarding the skilled Visa fee hike caught many off guard, leaving stakeholders in limbo. The President Donald Trump-led US government has announced a $100,000 annual fee on H-1B visa petitions, noting that the existing system was being abused and that it posed a national security threat.

The fee, which has been hiked from the earlier $1000, applies only to new applicants and petitions and not renewals. Still, the move is largely viewed as prohibitive. It weighs heavily for Indian professionals as they form a larger chunk of the share that are issued H-1B Visas. The decision has sparked concern within India’s IT industry and drawn criticism from trade bodies and the government, which view it as a measure that could disrupt both economic and humanitarian ties.

The global capability centre (GCC) ecosystem in India, however, sees an opportunity here. Experts and industry watchers opine that the fee hike could push more companies to rely on India-based delivery centers, which are not affected by US Visa restrictions.

“In fact, we already see growing demand for our offshore software pods as enterprises future-proof their tech delivery with India-based teams,” said  Sachin Alug, CEO of tech and talent solutions firm, NLB Services.

India is home to over 1,800 GCCs across industries such as banking and insurance, healthcare, and manufacturing, among others. They drive core product development, advanced R&D, data analytics, AI, cybersecurity, and digital transformation initiatives for Fortune 500 companies and multinationals. As per industry estimates, the sector is projected to grow from $64.6 billion in 2024 to $110 billion by 2030. This move may catapult the growth of the GCC industry in India.

“GCCs could actually stand to benefit, provided companies don’t take a protectionist stance. So far, we haven’t seen signs of that. We track this closely and speak with our GCC customers every day, and the sentiment remains optimistic. For now, India continues to be the largest hub for GCCs, and headquarters still see it as a critical choice. Of course, we will have to wait and watch how US counterparts respond, but India’s position looks strong,” said Gaurav Vasu, CEO of research firm UnearthInsights. 

Vasu also noted that the H-1B program is not a primary tool for GCCs, unlike IT services firms, BPOs, or large tech companies. GCCs focus on leveraging local talent and delivering services from India, which helps mitigate any potential negative impact from changes to the H-1B program.

GCCs in India employ around 2.16 million people, a figure expected to grow to 2.8 million by 2030, according to Finance Minister Nirmala Sitharaman.

“GCCs will start hiring skilled workforce from adjacent industries. Intra-GCC movement will also increase, compensation structures will also evolve, and for a short while, GCC hiring will become a supply-driven market,” said Neeti Sharma, CEO of staffing company, Teamlease Digital.

To be sure, Minister Sitharaman, during the Union Budget 2025-26, announced that a national framework will be formulated as guidance to states for promoting GCCs. This framework will focus on enhancing the availability of talent, promoting emerging tier-2 cities, building byelaw reforms, and mechanisms for collaboration with industry. States like Karnataka, Tamil Nadu, and Uttar Pradesh have their state-level policies in place for GCCs.