Introduction
Donald Trump’s offensive against H-1B visas is accelerating the transfer of essential jobs from US companies to India, fueling growth in Global Capability Centers (GCCs) that manage operations from finance to research and development, according to economists and sector experts.
The Rise of Global Capability Centers in India
India, the world’s fifth-largest economy, hosts 1,700 GCCs, more than half of the global total. It has evolved from a technology support hub to a high-value innovation center in areas ranging from luxury car bumper design to pharmaceutical discovery.
- Trends such as growing AI adoption and increasing H-1B visa restrictions are pushing US companies to rethink their labor strategies.
- Indian GCCs are emerging as resilient centers that blend global competencies with strong national leadership.
Rohan Lobo, partner and GCC sector lead at Deloitte India, stated that GCCs are uniquely positioned for this moment, serving as an internal engine ready to take on more strategic and innovation-focused roles.
Lobo mentioned that several US companies are reevaluating their workforce needs, with plans already underway in areas like financial services and technology, particularly among companies exposed to US federal contracts.
Trump’s H-1B Visa Policy Changes
President Donald Trump recently increased the cost of new H-1B visa applications to $100,000 from a previous range of $2,000 to $5,000, intensifying pressure on US companies relying on foreign-qualified talent to fill critical talent gaps.
US senators reintroduced a bill to tighten H-1B and L-1 visa program standards for workers, targeting perceived loopholes and abuses by large employers. If Trump’s visa restrictions remain unaddressed, sector experts predict that US companies will transfer high-level jobs related to AI, product development, cybersecurity, and analytics to their GCCs in India, opting to keep strategic functions internal rather than outsourcing them.
Impact on US Companies and GCCs
The growing uncertainty fueled by recent changes has reignited debates about transferring high-value jobs to GCCs, a process many companies were already undertaking.
“There’s a sense of urgency,” said Lalit Ahuja, founder and CEO of ANSR, which helped FedEx, Bristol-Myers Squibb, Target, and Lowe’s establish their GCCs.
Reevaluating India’s Strategies
In some cases, this rush could lead to “extreme offshoring,” according to Ramkumar Ramamoorthy, former general manager of Cognizant India. He adds that the COVID-19 pandemic has demonstrated that key tech tasks can be performed from anywhere.
- Major technology firms like Amazon, Microsoft, Apple, and Google’s parent company Alphabet, along with Wall Street bank JPMorgan Chase and retailer Walmart, are among the top H-1B visa sponsors, according to US government data.
- All have significant operations in India but declined to comment due to the politically sensitive nature of the issue.
One GCC retail head in India stated, “Either more jobs will be offshored to India, or companies will move them to Mexico or Colombia. Canada could also benefit.”
Even before Trump’s steep H-1B visa rate and plan for a new selection process favoring higher-paid applicants, India was projected to host GCCs from over 2,200 companies by 2030, with a market size close to $100 billion.
“This ‘gold rush’ will only accelerate,” Ahuja said.
Key Questions and Answers
- What are Global Capability Centers (GCCs)? GCCs are facilities established by multinational corporations in countries like India to manage various operations, including finance, research and development, technology, and customer support.
- Why are US companies considering shifting jobs to India? The primary reasons include increasing restrictions on H-1B visas, growing AI adoption, and the desire to maintain strategic functions internally rather than outsourcing them.
- Which industries are heavily invested in GCCs in India? Major technology firms, financial institutions, and retailers like Amazon, Microsoft, Apple, Google’s parent company Alphabet, JPMorgan Chase, and Walmart have significant operations in India.
- What does the future hold for GCCs in India? With the ongoing shifts and growing uncertainty, India is expected to host more GCCs, fueling their expansion and contributing significantly to the global service industry.
