Donald Trump’s crackdown on H-1B visas is accelerating the relocation of critical work from U.S. companies to India, propelling the growth of Global Capability Centres (GCCs) in the country. These centres, which manage operations ranging from finance to research and development, have expanded beyond their original tech support role, emerging as hubs for high-value innovation.
India is home to more than 1,700 GCCs, over half of the global total, and the country’s growing capabilities in areas such as luxury car design and drug discovery are making it an attractive destination for U.S. firms. According to industry experts, the increasing use of artificial intelligence and stricter visa regulations are prompting companies to rethink their labor strategies, with India’s GCCs positioned to play a larger role.
Rohan Lobo, partner and GCC industry leader at Deloitte India, noted that U.S. firms are reassessing their workforce needs, with some already planning shifts to India. He expects GCCs to take on more strategic, innovation-driven tasks in sectors like financial services and technology.
Trump’s administration raised the cost of H-1B visa applications to $100,000, a significant increase from the previous fee range of $2,000 to $5,000. This move, along with the reintroduction of legislation to tighten H-1B and L-1 visa rules, is putting pressure on companies that depend on skilled foreign workers.
As visa costs rise and restrictions increase, U.S. companies are increasingly likely to shift high-end work such as AI development, cybersecurity, and product innovation to India’s GCCs, keeping core functions in-house. Experts believe that this shift could lead to “extreme offshoring,” as companies look to bypass the constraints on skilled foreign labor in the U.S.
Big Tech firms, including Amazon, Microsoft, Apple, and Alphabet, have large operations in India and are some of the top sponsors of H-1B visas. Despite the politically sensitive nature of the issue, these companies are expected to expand their workforces in India in response to the visa restrictions.
India’s GCC market, already projected to reach over $100 billion by 2030, is set to grow further as U.S. firms increasingly look to India for both cost advantages and innovation-driven solutions. Lalit Ahuja, CEO of ANSR, believes the changes will only accelerate this trend, leading to a “gold rush” for GCCs in India.
However, some experts are cautious, especially in light of potential tax regulations like the proposed HIRE Act, which could impose a 25% tax on companies outsourcing work overseas. This could impact India’s export services and disrupt the flow of outsourced work.
While challenges exist, the demand for GCC services in India remains strong. Analysts believe that the surge in demand could offset some of the losses from restrictions on H-1B visas. As U.S. companies increasingly rely on GCCs in India to meet their talent needs, the country’s growing role in global innovation will likely continue to expand.
