Donald Trump’s move to sharply increase H-1B visa fees is expected to accelerate US companies’ shift of high-value work to India, boosting the growth of global capability centres (GCCs) that handle everything from finance to product design and research.
India, the world’s fifth-largest economy, already hosts over 1,700 GCCs — more than half the global total. Once focused on IT support, these centres have evolved into hubs of innovation, driving projects such as luxury car dashboard designs, drug discovery, artificial intelligence, and cybersecurity.
With H-1B costs skyrocketing from $2,000–$5,000 to $100,000 per application, many US firms are reassessing workforce strategies.
Analysts say this will make India’s GCCs an even more attractive alternative, allowing companies to cut reliance on foreign workers while keeping critical functions in-house.
“GCCs are uniquely positioned for this moment. They serve as a ready in-house engine,” said Rohan Lobo, partner and GCC industry leader at Deloitte India.
He noted that several US firms are already redrawing their plans, particularly in financial services and technology.
A Rapid Shift Underway
Industry veterans say plans to move more strategic and innovation-led functions to India are already in motion.
Lalit Ahuja, founder and CEO of ANSR, which has helped companies like FedEx, Bristol-Myers Squibb, Target, and Lowe’s establish GCCs, said there is now “a sense of urgency” among US multinationals.
Big Tech players — Amazon, Microsoft, Apple, and Google parent Alphabet — along with JPMorgan Chase and Walmart, are among the largest H-1B visa sponsors. All have significant operations in India and are expected to lean more heavily on them as visa costs soar.
Even before Trump’s fee hike, India was projected to host over 2,200 GCCs by 2030, with the market size nearing $100 billion. Trump’s move, experts say, will only accelerate that trend.
Risks and Roadblocks
Not everyone is convinced the shift will be smooth. Some executives warn that if the proposed HIRE Act, which seeks to impose a 25% tax on overseas outsourcing, is passed, it could disrupt India’s services exports and undercut the cost advantage that fuels GCC growth.
“Either more roles will move to India, or corporations will near-shore them to Mexico or Colombia. Canada could also benefit,” said the India head of a US retail GCC.
India’s $283 billion IT services industry, contributing nearly 8% of GDP, faces mounting pressure from US trade tensions. Still, economists argue that demand for GCC services could cushion much of the blow.
“Lost revenues from H-1B visa reliant businesses could be somewhat supplanted by higher services exports through GCCs,” Nomura analysts noted, highlighting the sector’s resilience amid shifting global labour policies.
