The landscape of global tech and finance is undergoing a significant shift as US companies increasingly turn to India for their operational needs, spurred by the Trump administration's stringent H-1B visa policies. These policies, highlighted by a recent increase in H-1B visa application fees to $100,000, are prompting US firms to reassess their workforce strategies and accelerate the expansion of their Global Capability Centers (GCCs) in India.
India, already a hub for over half of the world's GCCs with approximately 1,700 centers, is witnessing a transformation from its origins in tech support to a কেন্দ্র of high-value innovation. These GCCs are now handling operations ranging from finance and research and development to cutting-edge fields like AI, cybersecurity, and product development. This shift is not merely a cost-saving measure but a strategic move to tap into India's vast talent pool and leverage its competitive advantages.
Several factors contribute to this growing trend. The increasing adoption of artificial intelligence and the tightening of visa regulations are pushing US firms to redraw their labor strategies, with GCCs in India emerging as resilient hubs that blend global skills with strong domestic leadership. Industry experts note that GCCs are uniquely positioned to serve as in-house engines for innovation and strategic operations. This has led to many US companies reassessing their workforce needs and actively planning to shift more high-value work to their Indian GCCs.
Rohan Lobo, a partner and GCC industry leader at Deloitte India, confirms that many US firms are reassessing their workforce needs in light of the visa changes, with plans already underway to shift more work to India. He points to increased activity in financial services and tech, particularly among firms with exposure to US federal contracts, and expects GCCs to take on more strategic, innovation-led mandates over time.
The impact of this shift extends beyond the tech and finance sectors. Sectors like pharmaceuticals, life sciences, retail, and consumer packaged goods are also expanding their GCC presence in India. For instance, 23 of the world's top 50 life sciences firms have established GCCs in India, primarily within the last five years. Retail and CPG companies are also rapidly expanding, with India hosting nearly 25% of global retail and CPG GCCs, employing over 50,000 professionals.
While the H-1B visa crackdown may present challenges for India's IT outsourcing giants, it is expected to boost the GCC landscape. Analysts suggest that lost revenues from H-1B visa-reliant businesses could be offset by higher service exports through GCCs, as US-based firms seek to bypass immigration restrictions and access talent. Moreover, the increased costs associated with H-1B visas make it more economically attractive for companies to establish or expand operations in India rather than sponsoring expensive visas. This could potentially lead to a "reverse brain drain," encouraging skilled professionals to pursue careers in India.
However, some caution against premature celebrations. The potential enactment of the HIRE Act, which could impose a 25% tax on outsourcing work overseas, could significantly disrupt India's service exports. Despite these concerns, the long-term trend suggests that India is poised to become an even more critical hub for global operations, driven by its skilled workforce, cost- competitiveness, and strategic advantages in the evolving global landscape. In fact, even before the recent increase in H1-B visa fees, projections estimated that India would host the GCCs of over 2,200 companies by 2030, with a market size nearing $100 billion. This "gold rush," as some experts call it, is expected to accelerate further.
