The Daily Brief The new H1B rules take a hit at Indian IT
11 snips
Sep 23, 2025 Explore the new challenges facing Indian IT as visa fees soar, pushing firms to rethink their staffing and operations. Discover how industry giants are adapting by offshoring and automating. Dive into France’s political deadlock and debt crisis, revealing the struggles of a post-war provider state amidst rising costs and unsustainable pensions. Plus, catch quick updates on KKR’s acquisition in healthcare and Yes Bank’s ambitious wealth management plans.
AI Snips
Chapters
Transcript
Episode notes
H‑1B Fee Breaks On‑Site Economics
- The $100,000 one-time H‑1B fee undermines the on-site/offshore profit model that powered Indian IT for decades.
- Firms face broken economics for new visas unless revenue per on-site worker exceeds the fee.
The On‑Site Offshore Pay Gap
- Indian engineers often moved from Bengaluru jobs paying ~$30,000 to on‑site roles in New York with large client billings for firms.
- That on‑site/offshore split let companies charge $150k–$200k while paying lower India wages.
H‑1B Was Irreplaceable At Scale
- H‑1B filled a unique niche: scalable skilled immigration without needing star credentials or internal transfers.
- Other visas (L1, B1, O1) are capped by rules, fraud crackdowns, or reserved for exceptional talent.