The recent surge in H-1B visa fees is prompting global banks to rethink how they deploy talent, signaling a shift in offshore workforce strategies that could reshape the banking sector’s global footprint.
From April 2024, H-1B petition fees jumped to $780, with an additional $600 Asylum Program Fee for most employers. Premium processing costs now stand at $2,805, up from $2,500, and the H-1B registration fee is set to climb from $10 to $215 starting FY-2026. For large-scale employers filing thousands of petitions, these increases translate into tens of millions of dollars in new annual costs. Political discussions around further levies have added uncertainty, complicating long-term workforce planning for U.S.-based banks.
Shifting Offshore Strategies
Global banks are accelerating a move to offshore operations for both routine and specialized functions. Banks that once maintained a 70:30 offshore-to-onsite ratio are now pushing 80–85% offshore for run-the-bank functions and 65–75% offshore for change-the-bank initiatives.
India as the Key Hub
According to Manoj Joshi, CEO of SA Technologies Inc., India is emerging as the central pillar of this strategy. The country hosts over 1,900 Global Capability Centers (GCCs) employing 1.6 million professionals, with the banking, financial services, and insurance (BFSI) sector leading the way. NASSCOM reports that roughly half of the world’s banks already operate core activities from Indian hubs. Maharashtra’s 2023 policy aims to add 400 new centers by 2030, signaling strong government support for this expansion.
Nearshore Diversification
While India remains the primary hub, some banks are exploring nearshore locations in Canada, Poland, and Mexico for timezone alignment and compliance purposes. However, India continues to dominate in quantitative development, cloud modernization, and risk analytics.
Implications for India’s Banking Sector
The shift is generating significant talent demand in areas such as payments technology, AI-driven fraud prevention, regulatory reporting, and compliance automation. GCCs are transitioning from simple staff augmentation to capability-building centers, implementing reusable solutions for digital onboarding, KYC, and fraud prevention, while also exploring blockchain and advanced cybersecurity frameworks.
Wage and Skill Premiums
Despite cost efficiencies, specialized roles in India—such as cloud engineers, model governance experts, and low-latency software developers—command 20–30% higher pay than traditional positions.
Regulatory Oversight
With more regulated functions moving offshore, GCCs are ensuring compliance with RBI and SEBI requirements, including data residency, third-party risk management, and privileged access controls. Banks are increasingly adopting control-by-design approaches to meet domestic and international regulations.
Looking Ahead
The H-1B fee hikes may not be the root cause of transformation, but they act as a catalyst. Global banks are leveraging India’s GCC ecosystem to reduce costs by 50–70%, accelerate innovation, and strengthen governance and talent pipelines.
Manoj Joshi concludes, “Investing in governance, talent, and resilience gives banks a long-term edge. Offshore operations are no longer just a source of support—they are the foundation of global banking’s ability to innovate and stay competitive.”
