How U.S. Companies Can Avoid the $100K Visa Cost by Hiring in India

Introduction:

The recent $100,000 H-1B visa fee has left many U.S. businesses stunned. For decades, the H-1B program was the go-to option for companies needing highly skilled professionals from India. It wasn’t perfect, but it worked. Now, with the new fee structure, relocating even one employee can cost more than ever.

The impact is immediate. Budgets shrink. Hiring slows. Growth plans stall. Yet, the demand for global talent remains high. Technology companies, finance firms, and startups still need skilled engineers, analysts, and designers. Cutting back on talent is not an option.

So, what’s the smarter move? Hire employees directly in India instead of relocating them to the U.S.

Why Paying $100K Per Visa Doesn’t Add Up

Consider this. Moving a single engineer under the new H-1B visa rules can cost your company $100,000 before salary, benefits, or relocation costs. Planning to relocate five employees? That’s half a million dollars gone—money that could fund product development, marketing, or global expansion.

Even if your company can afford it, the process is slow and uncertain. The H-1B lottery remains unpredictable, and thousands of qualified professionals are denied visas every year.

Clearly, traditional relocation is no longer the best option for international hiring.

The Alternative: Building Teams in India

Instead of spending heavily on visas, companies can build teams in India, where talent is abundant and diverse. India is home to one of the largest pools of skilled professionals in the world. Think software engineers, data analysts, finance specialists, designers, digital marketers, and customer support experts—you can build nearly any team you need. And it’s not just about the talent—it’s about where the talent is. Cities like Bengaluru, Hyderabad, Pune, Gurugram, and Chennai have vibrant ecosystems of tech and business professionals. These cities are hubs for innovation and offer ready access to experienced employees who understand global standards.

Companies also have flexibility in how they hire. Remote teams can work from anywhere in India, reducing real estate costs. Hybrid setups let some employees work from the office while others contribute remotely, providing a balance of collaboration and flexibility. With this approach, scaling becomes seamless, and your operations are not bound by the complexities of relocation or visas.

By hiring directly in India, you get cost savings, faster onboarding, and access to highly motivated teams who are already familiar with global workflows.

For more insights, check out our blog: EOR Secrets: Why Companies are Ditching Local Entities for Global Hiring

Overcoming Compliance with EOR

Navigating compliance, payroll, and labor laws in a foreign country can feel overwhelming. That’s where Employer of Record (EOR) services come in. Here’s how it works:

Contract and Onboarding – The EOR signs a legal employment contract with your team member in India, while you retain operational control.
Payroll and Benefits – The EOR manages salaries, statutory benefits, and bonuses, ensuring employees are paid correctly and on time.
Compliance Management – They handle labor laws, taxes, employee contracts, and termination procedures, removing risk from your company.
HR Support – From performance reviews to conflict resolution, the EOR acts as the local HR team, keeping everything compliant and efficient.

Many companies using EOR in India have scaled teams quickly without establishing a local entity. For example, a U.S.-based SaaS startup needed a 15-person engineering team fast. Using an EOR, they were able to onboard the entire team within 6 weeks, fully compliant and operational, with zero visa dependency.

EOR services also help avoid risks like legal fines, payroll errors, labor disputes, or missed tax obligations—issues that can arise if a company tries to hire directly without local expertise.

Curious about how it works? Read: Want to Expand Internationally Without Setting Up a Legal Entity? Here’s How

Long-term Strategy: GCCs and Beyond

While EOR is perfect for immediate hiring, Global Capability Centers (GCCs) are a strategic move for companies planning long-term operations in India. GCCs are essentially full-scale offices staffed by employees under local contracts but integrated into your global business operations.

The benefits go beyond cost savings:

24/7 Operations: Teams in India can cover multiple time zones, providing round-the-clock support or development cycles.
Innovation Hubs: Indian teams contribute fresh ideas and insights, often creating solutions tailored for both local and global markets.
Risk Diversification: By building in India, your company reduces reliance on U.S. immigration policies or visa approvals. Even if the H-1B process is delayed or blocked, your projects continue uninterrupted.
Talent Retention: Employees in India often stay longer due to career growth opportunities, stability, and local incentives, reducing turnover costs.

Setting up a GCC isn’t just a backup plan; it’s a forward-thinking strategy to strengthen global operations, accelerate product delivery, and mitigate operational risks.

Strategic Benefits Beyond Cost Savings

Avoiding the $100K visa fee is just the start. By hiring in India:

Access a diverse talent pool ready to innovate.
Gain operational flexibility across global time zones.
Scale teams quickly without visa limitations.
Reduce risk from sudden policy changes.

This isn’t just about saving money—it’s about creating a future-ready workforce.

The Bottom Line

The new H-1B visa fee is a wake-up call. Relocating talent to the U.S. is no longer the only way to access skilled professionals. Hiring in India with the support of an EOR allows companies to:

Save hundreds of thousands of dollars
Access a rich talent pool
Scale faster without visa delays

Smart companies are already moving forward—building stable, cost-efficient teams in India and reducing dependency on U.S. visas.

At Team Management Services, we make India expansion simple. Whether you need a small team or a full global capability center, we handle payroll, HR, and compliance so you can focus on growth. Contact us today and discover how your company can avoid the $100K H-1B visa cost—and gain access to world-class talent in India