When conversations about tech talent in the U.S. come up, the focus often turns to H-1B visa holders. The debate usually centers on whether foreign workers are taking opportunities that might otherwise go to Americans. But there’s a bigger picture here that’s often overlooked.
Companies aren’t just navigating immigration policies, they’re making strategic decisions about how to access the skills they need to innovate and grow. Increasingly, this means looking beyond borders through trusted offshore partners. Far from being a threat, offshoring has become a practical way for businesses to bridge talent gaps, manage costs, and stay competitive in a global market.
Instead of framing the conversation around fear of displacement, it’s time to talk about how offshore agencies can complement U.S. teams, helping companies scale faster, tackle projects with the right expertise, and focus on their core goals.
H-1B Visa Shake-Up: Why This Matters Now
The H-1B visa program has long been a critical pathway for skilled foreign professionals to work in the United States. It allows U.S. employers to temporarily employ foreign workers in specialty occupations that require theoretical or technical expertise. But in 2025, this pathway became significantly more expensive and more controversial due to a proposed $100,000 petition fee.
September 2025 made headlines with a seismic policy shift: the proposed $100,000 fee for new H-1B visa petitions filed from outside the U.S.
For tech companies, startups, healthcare providers, and universities that rely on skilled foreign talent, the announcement felt like a jolt. For global workers eyeing American opportunities, it raised questions about the future of work in the U.S.
The H-1B program, often politicized, has been a cornerstone of American innovation. But when the cost structure shifts this dramatically, the impact reaches far beyond payroll. It touches immigration, global mobility, hiring strategy and outsourcing.
Let’s unpack the policy, its intended effects, and why it might just fuel the very trend it aims to curb.
Key Takeaways from the $100K H-1B Fee Proposal
- • The Fee is One-Time: It applies to new H-1B petitions for workers outside the U.S., not renewals or current holders.
- • Aim: Protect U.S. Jobs: The goal is to prevent replacing American workers with lower-cost foreign hires.
- • Likely Outcome: More Offshoring: For many companies, the alternative is to hire entire offshore teams for the same cost.
- • Impact on SMBs & Education: Startups and universities may struggle most, unable to absorb the fee.
- • Increased Global Competition: Countries like Canada and Australia now look even more attractive to global talent.
Why the $100K Fee Was Introduced
The rationale? To curb what policymakers describe as abuse of the H-1B system where companies hire foreign workers at lower wages while downsizing domestic staff.
While the goal of protecting U.S. workers is fair, the execution has drawn criticism:
- • Tech firms already pay high wages to H-1B workers
- • The policy could hurt small businesses more than large corporations
- • It may disincentivize innovation and reduce America’s global talent appeal
And most importantly, it doesn’t stop companies from hiring offshore, it may accelerate it.
The Offshoring Ripple Effect
As visa costs rise, the economic case for offshoring becomes stronger.
Instead of paying $100,000 to relocate one engineer to the U.S., businesses can hire a full offshore team in India, the Philippines, or LATAM with:
- • Faster onboarding
- • Lower total cost
- • Access to the same skillsets
- • No immigration hurdles
It’s not a theory, it’s already happening.
Offshore Outsourcing Displaces More U.S. Jobs Than H-1B Hiring
Let’s look at the numbers:
- • H-1B Visas: ~85,000 new issuances per year
- • Offshore Jobs Outsourced: ~300,000+ annually
Despite tighter scrutiny, outsourcing remains a massive and growing lever for cost-saving and operational agility.
So while H-1B gets the headlines, offshore outsourcing quietly reshapes the U.S. workforce at scale.
A Tale of Two Talent Models
| Aspect | H-1B Visa Program | Offshore Tech Agencies |
|---|---|---|
| Definition | U.S. companies hire foreign talent to work in the U.S. | Teams located and operating outside the U.S. |
| Contribution to U.S. Economy | High (taxes, local spending) | None |
| Cost Structure | High (visa, legal, relocation) | Lower (labor, ops) |
| Job Volume | 85,000 annually | 300,000+ annually |
| Policy Exposure | High | Low or none |
What the H-1B Fee Means for Employers
For U.S. businesses:
- • Startups & Nonprofits: May no longer afford to sponsor top global talent
- • Enterprises: May limit H-1B sponsorship to only senior, strategic hires
- • Universities & Healthcare: Could see reduced international staff participation
For all companies:
- • Offshoring is no longer a fallback, it’s becoming the default for many roles.
Smart Offshoring Isn’t Job Displacement, It’s Strategy
At PeoplePartners, we believe offshoring doesn’t have to mean cutting corners.
We help companies:
- • Find aligned, skilled professionals offshore
- • Ensure salary transparency and values fit
- • Scale teams without sacrificing culture or quality
- • Avoid risky lock-ins with our Zero Upfront Cost guarantee
Smart offshoring isn’t about replacing. It’s about reinforcing your core team.
FAQs: The $100K H-1B Visa Fee & Offshoring
1. Does the $100K fee apply to all H-1B petitions?
No. It applies only to new petitions for workers currently outside the U.S. It doesn’t affect renewals or transfers.
2. Why are companies considering offshoring instead?
Because for the same cost, they can build larger, scalable offshore teams with fewer legal risks.
3. Can offshoring really replace H-1B hiring?
Not always — but for many roles (engineering, design, support), offshore teams offer equal skills at lower cost.
4. Is offshoring always cheaper?
Yes, especially when done through transparent, values-driven partners. Savings can reach up to 70%.
5. How can offshoring be done ethically?
Through cultural alignment, transparent pay, and zero-bench recruiting — all core to the PeoplePartners model.
Final Thoughts
The $100K H-1B visa fee is a turning point. Not just for immigration but for global hiring strategy.
The policy may limit who comes into the U.S., but it won’t stop work from flowing outward. That’s already happening.
Whether you’re a U.S. company exploring new ways to scale, or a global professional wondering where opportunity leads next, one thing is clear:
The future of work isn’t coming. It’s here.
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