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H-1B Visa Policy Shift: Risks and Opportunities for the Global IT Services Industry

Publisher IDC
Published Oct 14, 2025
Length 7 Pages
SKU # IDC20481067

Description

This IDC Market Note provides an assessment of the U.S. H-1B visa policy shift, highlighting its immediate cost pressures, deal uncertainties, and operational risks for global IT services firms. It outlines IDC's perspective on how these changes will accelerate offshore and nearshore delivery adoption, driving structural shifts in competitive dynamics. The Note also provides guidance for services firms to mitigate risks, rebalance talent strategies, and leverage AI and automation to enhance resilience and long-term competitiveness."The $100,000 H-1B visa supplemental fee is a catalyst for structural change in IT services. While it creates near-term cost pressures and deal uncertainty, it accelerates offshore and nearshore delivery adoption. Firms that realign talent strategies and embrace AI-driven delivery will become more resilient and competitive," says Nishant Bansal, associate research director, Worldwide Services Research, IDC.

Table of Contents

7 Pages

Executive Snapshot

In This Market Note

Potential Impacts on the IT Services Industry

Higher Onshore Staffing Costs

Impact (Moderate to Significant) and Area: Margins

Reduced Availability of Skilled Labor in the United States

Impact (Significant) and Area: U.S. Workforce and Project Delivery

Job Creation and Economic Growth

Impact (Moderate) and Area: Job Creation and Growth

Deal Structuring and Pricing Pressure

Impact (Moderate) and Area: Deals

Acceleration of Offshore/Nearshore Delivery

Impact (Significant) and Area: Strategy/Operations

Margin Compression

Impact (Moderate to Significant) and Area: Profitability

Shift in Sales/Go-to-Market Strategy

Impact (Moderate) and Area: Deals/Market Positioning

Operational Risks from Uncertainty

Impact (Minor to Moderate) and Area: Delivery/Operations

Digital Sovereignty Pressures

Impact (Moderate) and Area: Local Innovation

Does India Stand to Benefit?

Global Beneficiaries Beyond the United States

IDC's Point of View

Guidance for Tech Suppliers

Learn More

Related Research

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