JPMorgan Says $100K 'Prices Out H-1B' as Indian IT Giants May Accelerate Offshoring With Remote Delivery Already Proven at Scale (indiadispatch.com)
Major Indian IT firms derive only 0.2% to 2.2% of their workforce from H-1B approvals after years of reducing visa dependence, according to India Dispatch. New approvals alone account for under 0.4% of headcount. Morgan Stanley estimates companies could offset 60% of the financial impact through increased offshoring and selective price increases. The net damage to operating profit would stay contained at around 50 basis points or a 3% to 4% hit to earnings spread across the renewal cycle. Companies plan to accelerate geographic arbitrage by [3]routing more work to India, Canada, and Latin America . Firms can maintain their existing visa holder base while letting normal turnover occur over three to six years.
[1] https://news.slashdot.org/story/25/09/19/2020241/president-to-impose-100000-fee-for-h-1b-worker-visas-white-house-says
[2] https://indiadispatch.com/p/100-000-dollar-visa-india
[3] https://indiadispatch.com/p/100-000-dollar-visa-india