Impact of US H-1B Visa Charges on IT Services and Global Capability Centres (GCCs)
The United States' decision to charge $100,000 for all new H-1B visa applications is expected to affect the IT services industry significantly, prompting a reduction in reliance on this visa channel.
Opportunities for Global Capability Centres (GCCs) in India
This decision is seen as beneficial for India's booming GCCs, as US companies may rely more on these centres to execute technology-based work. This could lead to a reverse brain drain, with professionals returning to India to capitalize on opportunities in GCCs located in cities like Bengaluru, Hyderabad, Pune, and Gurugram.
Challenges for GCCs
Despite the growth of GCCs, many have not reached the desired maturity level, being perceived as delivery centres rather than value-creating hubs. This poses a challenge amid the US's hostile stance on H-1B visas and outsourcing.
- KPMG India notes the need for GCCs to engage in more value-added work.
- A report by BCG classifies only 8% of Indian GCCs as top performers, with 66% as average performers.