In September, the United States enacted major reforms to its H-1B visa program, including a $100,000 fee for new applications starting February 2026 and a shift from a lottery-based system to a wage-based selection model. With over 71% of all H-1B beneficiaries coming from India in FY 2024, these changes will have profound implications for global talent mobility and international hiring strategies.
The Impact: Rising Costs and Hiring Barriers
The new fee structure and selection process are expected to hit U.S. companies that rely heavily on Indian talent — particularly mid-sized IT and tech firms — the hardest. Larger organizations may adjust, but start-up's and research institutions could struggle to justify the expense. Likely outcomes include:
Reduced U.S. hiring from India
Increased offshoring of high-value roles
Greater movement of talent from India to Canada, Europe, and Australia instead
As visa sponsorship becomes more complex, Employer of Record India (EOR India) solutions provide an agile alternative. Businesses can hire in India without entity setup, ensuring compliance with Indian labor laws while keeping operations cost effective.
India’s EOR Strategic Opportunity
While U.S. borders tighten and more professionals consider opportunities closer to home, India is uniquely positioned to welcome back talent bringing capital, global networks, and scaling expertise, strengthening:
Growth of Global Capability Centers (GCCs), which are offshore hubs set up by multinational companies in India to handle IT, R&D, and operational functions
Expansion of R&D and AI hubs in Bengaluru, Hyderabad, and Pune
Increased innovation, start-up growth, and patent filings
For businesses seeking to access talent or establish operations in India, partnering with a top EOR in India ensures compliance with legal entities requirements, smooth onboarding processes, and tailored HR support.
India’s STEM Advantage
India's deep talent pool in STEM fields has long been a backbone for H-1B placements. In 2024, Indian professionals filled critical roles in software engineering, data science, and biotech, reinforcing India's global talent leadership.
As hiring shifts toward remote-first and distributed models, EOR India becomes a strategic enabler for companies looking to tap into this expertise without setting up a local entity.
Preparing for the Future: India’s Next Steps
To fully leverage this moment, India must create attractive career pathways domestically and globally:
Strengthen local innovation ecosystems
Incentivize R&D and advanced technology roles
Enhance start-up funding and international partnerships
Streamline compliance and infrastructure for returning professionals
How Atlas HXM Supports Global Talent Strategy
As a leading EOR service provider, Atlas HXM helps companies hire talent wherever they are, without the friction of visa sponsorship. For organizations looking for Indian talent, our solutions provide:
Location-agnostic employment
Compliance and legal support
Seamless integration into global teams
Final Thought
The H-1B reforms highlight more than just U.S. immigration changes, they mark a turning point for global talent mobility. For employers, the question is not only where talent is located, but how to engage and support it effectively.
With Atlas HXM's direct EOR model, organizations can onboard talent without the barriers of visas or entity setup, while professionals can thrive wherever they are. As India strengthens its role in the global talent landscape, Atlas HXM provides the expertise and infrastructure to help businesses operate confidently across borders.
