Introduction
The US government’s announcement of a $100,000 annual fee for each new H1-B visa has raised concerns in the global tech industry. For US companies, this measure represents a costly obstacle to attracting foreign talent. Meanwhile, Mexico sees an opportunity to position itself as a readily available source of specialized talent nearby.
The Cost of Relying on H1-B
The sheer volume of the program highlights the problem’s magnitude. In 2024, around 400,000 H1-B visas were approved, with two-thirds being renewals. Over 70% of beneficiaries were from India, reflecting the geographical concentration in the US’s talent-importation strategy.
With the new fee, each international hire via H1-B is almost equivalent to hiring a full-time senior executive. For startups and mid-sized companies, this model becomes unsustainable. This is where Mexico emerges as a viable alternative.
“It’s quite feasible,” says Eduardo Barrientos, co-founder of Aplex, when asked if US companies could replace the visa model with Mexican hires.
His argument is straightforward: there’s a cultural barrier in US corporations regarding Latin America, but once broken, they realize the quality and proximity of Mexican talent.
- Remote hiring: Supported by platforms and services that enable compliance with Mexican tax and labor obligations.
- Employer of record structures: Companies functioning as legal employers in Mexico while the talent works for a foreign firm.
“Remote hiring will be the simplest and quickest way to grow in the short term compared to opening physical offices,” said Emmanuel Olvera, Hireline’s technology recruitment platform director.
Mexico’s Comparative Advantages
Unlike other Latin American countries, Mexico has geographical and regulatory advantages. Under the US-Mexico-Canada Agreement (T-MEC), the TN visa exists for Mexican professionals in specific fields. This figure, unaffected by the new fee, offers a more affordable and expedited migration channel than H1-B.
Mexico also boasts talent pools in Mexico City, Monterrey, and Guadalajara, with public and private universities graduating thousands of engineers annually. These graduates are in the same time zone as major US tech regions, and Mexico is easily accessible.
Moreover, Mexico has growing experience in remote support, quality assurance (QA), project management, and software development for global clients, according to Emmanuel Olvera.
Barriers
This new opportunity isn’t without challenges. One major limitation is language: “Only 23% of Mexican professionals have advanced English,” warns Olvera. For US companies, this means investing in language training or prioritizing bilingual candidates.
Another factor is international experience. Barrientos notes that companies seeking to establish Mexican operations must first build a local leadership layer functioning as a cultural and operational bridge.
Companies Need to Diversify
Experts convey that the H1-B visa fee increase isn’t just a cost change but a call for diversification.
“Companies should start planning alternatives A and B,” says the expert. Mexico already has the legal and human infrastructure to be that alternative.
The $100,000 fee per H1-B visa accelerates processes that many companies had postponed. Mexico has the chance to become a strategic technology talent provider, provided it strengthens three fronts: English proficiency, global experience, and flexible hiring structures.
For Mexican workers, this presents an opportunity where their profile is not only cost-competitive but also advantageous due to location and cultural proximity. For the US, it’s a way to continue nourishing its innovation ecosystem without paying an exorbitant fee. For Mexico, the situation is an invitation to demonstrate that local technology talent can address global challenges.
