United States companies are increasingly exploring India’s global capability centres as rising costs and restrictions tied to H-1B visas reshape talent strategies. India, already home to more than 1,700 global capability centres, has become an important destination for offshore operations, offering businesses a way to maintain innovation and critical work in-house at a time of regulatory uncertainty. With over half the world’s GCCs located in India, the country has moved far beyond its earlier role as a hub for basic tech support, growing into a centre for advanced work such as artificial intelligence, product development and drug discovery.
The shift has accelerated in recent weeks after President Donald Trump signed an executive order imposing a $100,000 fee on new H-1B visa applications. This fee, nearly seventy times higher than the earlier charges ranging from $1,500 to $4,000, has caused shockwaves across industries that depend on skilled workers. The Trump administration defended the decision on the grounds of protecting domestic employment and addressing security concerns, but the ripple effects have been immediate. Many companies that once relied on bringing specialized talent to the US are now reconsidering their options and moving critical roles offshore to India.
India has positioned itself as a natural destination. Its GCCs combine global expertise with strong local leadership, making them an attractive solution for multinational corporations. Leaders in the sector highlight how firms in financial services, technology and healthcare are already expanding their GCC footprints in India. They note that these centres are increasingly tasked with strategic and innovation-driven mandates rather than merely handling support or back-office work. This trend is expected to deepen as US firms reassess staffing plans and look for sustainable ways to continue high-value projects without being hampered by restrictive immigration policies.
The return of proposals in the US Congress to tighten H-1B and L-1 visa programs has added further uncertainty. With lawmakers again pushing reforms designed to prevent what they describe as loopholes and abuse, industry leaders say businesses are motivated to accelerate investment in India. The result could be what some analysts call “extreme offshoring,” with companies rapidly transferring work tied to artificial intelligence, cybersecurity, analytics and product development to their Indian GCCs. This approach allows them to safeguard intellectual property and strategic initiatives while avoiding dependence on an unpredictable visa system.
The Covid-19 pandemic demonstrated that critical technological functions could be performed remotely from anywhere in the world. Building on those lessons, businesses now view India’s GCCs as a secure and scalable platform for high-end operations. Technology giants such as Amazon, Microsoft, Apple and Alphabet, along with financial institutions like JPMorgan Chase and large retailers including Walmart, already have extensive operations in India. With H-1B restrictions increasing costs, industry observers expect these corporations to further expand their Indian workforce.
Still, the landscape is not without challenges. Some executives point to proposed legislation such as the HIRE Act, which could impose a 25 percent tax on overseas outsourcing payments. If passed, this measure would significantly impact India’s IT and business process outsourcing industries. Consequently, while many firms are ramping up their GCC presence, others are taking a cautious approach, monitoring developments before committing to large-scale moves. The looming threat of an outsourcing tax means that corporations are carefully balancing urgency with prudence.
Projections indicate that India could host more than 2,200 GCCs by 2030, with the market size approaching $100 billion. Analysts suggest that the recent visa fee hike and the renewed scrutiny of worker programs will only accelerate this trend. Companies are eager to ensure continuity in innovation while reducing their exposure to policy volatility in the United States. For sectors such as pharmaceuticals, financial services, consumer goods and high technology, India offers a blend of skilled talent, cost efficiency and institutional depth that is difficult to match elsewhere.
Even as some consider alternatives such as Mexico, Colombia or Canada for nearshoring, India remains the largest and most established option for high-value global capability centres. The momentum generated by the latest visa changes underscores a broader shift already underway, one that places India at the centre of multinational corporations’ innovation and strategy networks. With the ability to absorb and expand at scale, India’s GCCs are well-positioned to define the next phase of globalization in high-value work.
For now, the message is clear: steep H-1B costs and persistent uncertainty are pushing US companies to look east, and India’s global capability centres are ready to answer the call.
