H-1B Visa Fee Shock:Temporary Setback Or Turning Point For Indian IT? Former Zensar CEO Weighs In

Former Zensar Technologies Chief Executive and IT industry veteran Ganesh Natarajan believes Indian companies will face the short-term impact of the US government's mandate to charge a one-time fee of $100,000 to new H-1B visa applicants but stressed that resilience in the Indian IT industry will prevail.

Speaking to NDTV Profit, Natarajan said, "Close to 60,000 H-1B visas were granted last year. There is a certain amount of concern that companies will have. They will have to figure out how to cope with that situation."

Last week, US President Donald Trump announced a $100,000 fee, up from the current cost of $2,000 to $5,000.

With Indians being the largest recipients of H-1B visas, the impact of the move was thought to be big not just on professionals but also on IT companies.

This is despite the fact that the White House later clarified that there will only be a one-time fee of $100,000, which will be applicable only for new petitions.

The former Zensar Tech CEO believes the sharp rise in H-1B visas will force Indian IT services companies to rethink staffing strategies, with Global Capability Centres (GCC) emerging as a key solution.

Natarajan ideated that while GCC allows companies to execute projects offshore or nearshore, they require calibration of strategies and approval of clients.

Two mitigating opportunities. One is to hire locally or hire people already on H-1B. The second option is GCCs, but it is a rebalancing of the model and needs client approval. It also needs a certain level of rethinking of strategy. But if push comes to shove, companies will make it happen," he said.

Natarajan's statements fall in contrast to former Tech Mahindra CEO CP Gurnani, who claimed that the fee hike will have no near-term impact and may, in fact, be beneficial for India in the long run.