In September 2025, the U.S. government introduced a significant change to the H-1B visa program. A new policy mandates a $100,000 one-time fee for new H-1B visa applications, effective from the 2026 application cycle. This move aims to reduce the outsourcing of jobs and encourage hiring U.S. workers.
This policy change poses a major challenge for U.S. IT companies that have relied on the H-1B visa program to hire foreign talent. With these increased visa costs and stricter regulations, many agencies are now looking for alternative solutions to meet their staffing needs. Outsourcing to India is one such solution that can help U.S. agencies manage costs while maintaining access to skilled professionals.
Why Outsource to India?
India is home to a vast pool of talented IT professionals, and outsourcing work to Indian agencies can provide US companies with many advantages, especially in the face of new H-1B visa restrictions. By outsourcing, IT companies can continue to scale their operations without the burden of expensive visa fees and complex immigration processes.
Key Benefits of Outsourcing to India
Here are a few compelling reasons why United States IT agencies should consider outsourcing their work to India:
- India is home to a large number of highly skilled IT professionals specializing in various technologies like wordpress development, PHP web development, mobile app development, digital marketing, and more.
- Outsourcing to India offers significant cost savings, as labor costs in India are lower compared to hiring in-house employees in the US. Agencies can allocate resources more efficiently and improve profit margins.
- Indian agencies are known for their efficiency, offering quicker turnaround times due to time zone differences and round-the-clock work models. This ensures timely project delivery.
- Outsourcing allows you to scale your team up or down based on project needs without the complexities of hiring and firing in the U.S.
Pros & Cons of Outsourcing to India vs. In-House Employees in the U.S.
Here’s a side-by-side comparison of the key advantages and disadvantages of outsourcing to India VS hiring in-house employees in the U.S.
| Criteria | Outsourcing to India | In-House Employees in the U.S. |
| Cost | Pros: Significantly lower labor costs, high-quality work at a fraction of the cost. | Cons: High salaries and operational costs for in-house staff. |
| Talent Pool | Pros: Access to a large, diverse pool of skilled professionals. | Cons: Limited by local talent availability and higher recruitment costs. |
| Time to Scale | Pros: Easy to scale up or down depending on project needs. | Cons: Time-consuming and costly to hire, onboard, and train new staff. |
| Flexibility | Pros: More flexibility to adjust workforce size based on demand. | Cons: Less flexibility due to long-term hiring commitments and fixed costs. |
| Turnaround Time | Pros: 24/7 work cycles, faster project completion. | Cons: Limited to standard working hours; may delay project timelines. |
| Communication | Cons: Potential communication barriers or differences in work culture. | Pros: Direct, in-person communication and cultural alignment. |
| Security & Compliance | Cons: Security and data protection need careful management with offshore teams. | Pros: Easier control over security and compliance regulations. |
| Innovation & Expertise | Pros: Access to innovative ideas and specialized skills from diverse markets. | Cons: Limited to the expertise available within your organization. |
Conclusion
The recent changes to the H-1B visa program have created new challenges for American software development companies, especially those relying on foreign talent. Outsourcing to Asian country offers a practical solution, providing access to skilled professionals at a lower cost while mitigating the complexities of the new visa policies.
Outsourcing enables US based companies to scale their operations, reduce operational costs, and maintain flexibility in their workforce. By partnering with Indian agencies, you can continue to meet client needs while adapting to the changing USA labor landscape.
If you’re looking to optimize your outsourcing strategy, Loyal Web Solutions remains a strong choice with its diverse talent pool, cost-efficiency, and robust technical expertise. Drop an email to info@loyalwebsolutions.com for a free quote OR consultation.
Author Bio
By Hardip Koradia
Hardip Koradia, with over 15 years in the IT sector, masterfully blends Web Design, Development, SEO, and Digital Marketing, propelling Loyal Web Solutions since 2011 as its visionary CEO. Under his guidance, the firm has witnessed consistent growth and cultivated a team of mindful professionals. Off-duty, Hardip delves into internet research, sharing invaluable insights about the digital world, from web intricacies to mobile app trends.