American Firms Shift Finance, Tech Work to Indian GCCs

In a bold move that's reshaping global business landscapes, Donald Trump's stringent new restrictions on H-1B visas are accelerating the migration of high-value jobs from the United States to India. Experts predict this will supercharge the expansion of Global Capability Centres (GCCs) in India, which already dominate more than half of the world's total with over 1,700 facilities. These hubs have evolved far beyond basic tech support, now driving cutting-edge innovations in fields like AI-driven drug research and luxury vehicle design.

As American companies grapple with talent shortages, trends like AI proliferation and visa hurdles are forcing a strategic rethink. "GCCs are perfectly primed for this shift—they're like built-in powerhouses for in-house operations," explained Rohan Lobo, Deloitte India's GCC expert. He revealed that multiple US firms are already plotting workforce reallocations, especially in finance and technology sectors, including those tied to government contracts. Lobo anticipates these centers will soon handle even more pivotal, creative roles.

This month, Trump hiked new H-1B visa fees to a staggering $100,000 from the prior $2,000-$5,000 range, piling pressure on businesses dependent on international expertise. Adding fuel to the fire, senators revived legislation to clamp down on H-1B and L-1 programs, aiming to seal perceived gaps exploited by big players.

Also Read: Russia Backs Trump’s Bold 20-Point Gaza Peace Plan

Should these policies stick, insiders foresee a surge in relocating advanced tasks—think AI, cybersecurity, product engineering, and data analytics—to Indian GCCs, keeping them under company control rather than outsourcing externally. "The uncertainty is sparking urgent boardroom talks," noted Lalit Ahuja, CEO of ANSR, which has assisted giants like FedEx, Bristol-Myers Squibb, Target, and Lowe's in establishing their Indian bases.

Former Cognizant India MD Ramkumar Ramamoorthy warned of potential "extreme offshoring," highlighting how the pandemic proved remote execution of complex tech work is feasible worldwide. Major H-1B users, from tech titans like Amazon, Microsoft, Apple, and Alphabet to financial powerhouses like JPMorgan and retailers like Walmart, all maintain substantial Indian footprints but declined comment due to the topic's political heat.

Alternatives like nearshoring to Mexico, Colombia, or Canada might emerge, but India's edge remains strong. Pre-Trump projections already eyed India hosting GCCs for over 2,200 firms by 2030, with a market ballooning to $100 billion. "This policy storm is just fast-tracking the gold rush," Ahuja enthused.

Skeptics urge caution, eyeing the proposed HIRE Act's 25% outsourcing tax that could disrupt India's service exports. "We're monitoring closely and prepping scenarios," shared a US pharma GCC leader in India. Tensions in US-India trade now extend to services, potentially eroding India's cost advantages and curbing bilateral flows.

Yet, while India's $283 billion IT sector—fueling 8% of national GDP—might wince from visa-dependent losses, booming GCC demand could offset much of it. As Nomura economists noted recently, "Declines in H-1B-linked revenues may be balanced by amplified GCC exports, letting US companies sidestep immigration barriers for talent access."

Also Read: Palestinian Authority Praises Trump’s Peace Initiative, Urges Swift Action