Nasscom warns of disruption to onshore projects and extra cost to companies

Following the new proclamation by US President Donal Trump imposing a $100,000 annual fee on H-1B visa applications, Technology industry body Nasscom has warned that the move could have a larger of a far-reaching effect on technology business landscape.

While the organization said that it was reviewing the finer details of the order, it sees the new the hike in visa charges having a can potentially have ripple effects on America’s innovation ecosystem and the wider implication on the job economy. “It will also impact Indian nationals that are on H-1B visas working for global and Indian companies. India’s technology services companies will also be impacted as business continuity will be disrupted for onshore projects and additional cost will require adjustments.

Companies will work closely with clients to adapt and manage transitions”, Nasscom statement said.  

In the proclamation, White House alleged that IT outsourcing companies' firms were manipulating H-1B visa which in turn is harming American talent. Citing numbers that  among computer and math occupations, the share of foreigners in the workforce grew from 17.7 percent in 2000 to 26.1 percent in 2019,  and this was due to abuse of the H-1B visa , which was also making it difficult for American college graduates trying to find IT jobs due to wage disparity .

Addressing these allegations the Nasscom statement further said, “It is also important to note that India and India centric companies have been steadily reducing their reliance on these visas through increased local hiring in recent years. These companies also follow all necessary governance and compliance in the US for H-1B processes, pay the prevailing wages and contribute to the local economy and innovation partnerships with academia and startups” .  

Nasscom has also expressed grave concern over the short 1-day window provided for implementation, as the new rules come into effect after 12:01 a.m., September 21. For those with H1B visa currently not in the US could face difficulty in entering the after the deadline creating uncertainty for businesses, professionals, and students across the world.  

Currently the U.S. Citizenship and Immigration Services caps the issue of number of H1-B visa and has a process of lottery system. For fiscal 2026, US had a ceiling of 65,000 H-1B visa regular cap and the 20,000 H-1B visas under U.S. advanced degree exemption, known as the master’s cap. It is not just IT and ITES companies, but the hike in visa will also affect large consulting firms and large banks with captives .  

Since the Secretary of Homeland Security can also make exemptions to hiring under H-1B specialty if it serves national interest of US, the industry still awaits clarity on the discretionary waiver process. Pointing at the criticality of talent mobility, Nasscom  further said that high-skill talent has been vital in driving innovation, competitiveness, and growth of America’s economy.