THE AUTHOR
Hemant Madaan
CEO
A technology entrepreneur and digital solutions leader with 20+ years of experience delivering enterprise IT and product engineering initiatives. Specializes in digital transformation, AI platforms, cloud strategy, and scalable software solutions across industries. Has led global teams and complex delivery programs, helping startups and enterprises convert technology investments into measurable business outcomes, with deep expertise in product development, enterprise mobility, CRM, portals, and secure cloud architectures.
When it comes to businesses, it is not always about earning; it is also about getting the right talent at speed and correct cost. Imagine you have a complex technology project and have engineers working on it who have travelled miles from their country to live and work in USA. Everything is going fine, but suddenly a new $100,00 H1B fee pops up, and your project is now at major risk now and you may have to start from the beginning and look for talent.
A few days back, on September 21, 2025, a new rule introduced a $100,000 fee for new H1B visa applications. And honestly, it is not just a policy change or fee hike, this change will shift the way U.S. companies hire global talent. No one really wants to pay $100k just to hire a professional on top of their salaries. For startups, mid-sized firms, and enterprises using outsourcing, the impact is immediate and significant.
At JumpGrowth, we partner with clients who rely on onsite, nearshore, and offshore teams. Here’s our take on what this fee means for your business and the steps you can take to adapt.
These savings can help businesses and take them long way. Nearshore is just one tool that you can use – you may choose automation or hiring local which may suit some projects better.
What Is the H1B Visa?
Although you might be aware of what an H1B visa is, here is an overview: H1B visa is a permit for US companies to hire highly educated and engineering skilled professionals from other countries and let them stay in the US for three years. If required, the companies can extend the H1B visa to six years. But with the new H1B fee, start-ups and mid-sized organizations have to reconsider their hiring decisions to keep them in budget. First let’s understand how this new H1B fee have change the cost of hiring IT professionals from other country:Before and After cost of Onboarding IT professionals
Before this rule, an employer paid around $5000-$10000 to onboard a professional. The breakdown goes as follows:- Around $780 for filing
- $500 for fraud checks
- $750-$1,500 for training
- $2,805 for fast-tracked h1b extension premium processing.
Why This Fee Hurts Businesses
It doesn’t matter how much profit you’re making or how talented professionals you’re hiring, paying $100,000 always will force you to have a second thought. And honestly, this new H1B visa fee is a big deal for mid-sized tech firms and startups. It will totally change your hiring process in several ways, such as:- First, the cost is huge. That $100K could buy new laptops, fund ads, or hire local staff. We’ve seen clients panic, saying, “We planned for three H1B hires, but now we can only afford one!” It’s a budget-killer, especially if you’re pulling in $2-$10 million a year.
- Next, it messes with your hiring. You rely on H1B talent for skills like AI or cloud coding, but this fee makes you rethink. Train locals? Takes time. Hire remote U.S. workers? Tough in a tight market. Plus, the visa process itself is slow, sometimes taking 6 to 12 months. Can you wait that long when competitors are moving fast?
- It hurts your edge. Big companies like Google may pay the $100,000 H1B visa fees. But for you, it’s a stretch. You might lose that star coder to a rival or delay projects, missing deals. It’s like running a race with a backpack full of bricks. We’ve watched clients lose steam because of this, and it’s not pretty.
Business Impacts to Prepare For
- Rising Costs: If your strategy relies on H1B hires, budgets will hit the $100K fee per new hire. With this heavy amount, businesses have to rethink their hiring approach to keep the cost on track.
- Fewer Onsite Workers: As mentioned in above point, with the new H1B fee means companies will opt for fewer foreign engineers in the U.S. So now the trend will shift towards the remote workers.
- Growth in Nearshore and Offshore: With the new fee it is obvious that hiring in-house professionals from other countries is not relevant for start-ups and mid-size organizations. To fill talent gaps, they have to tilt towards the nearshore development from countries like Mexico and Canda or offshore centers in places like India.
- More Automation and AI: Although, we have already shifted towards automation and using AI a few times for now. But now with the new fee, companies have to cut reliance on costly onsite roles and use AI, low-code platforms, and automation to get work done faster.
- Risk of Losing Ground: The biggest business impact, you need to be prepared for is risk of losing ground. If companies didn’t adapt towards the new and reliable approaches like nearshore or offshore, they could face project delays, slower innovation, and weaker market position compared to competitors.
How to Adapt to the H1B Fee Challenge
This $100K fee doesn’t mean your plans are stuck. It’s time to rethink how you build teams. At JumpGrowth, we are observing and studying this shift, and here are six strategies to keep your business strong, with nearshore as one option among many.- Audit Your Talent Needs: Check which roles must be in the U.S. versus ones that can be remote. Focus H1B hires only on critical, high-value positions and shift others to cost-effective models to save on h1b filing fees.
- Consider Hiring Locals: Its time to change the shift to hire more local workforce available without any H1 visa restrictions. It is the best and easiest alternate in this situation, however with growing demand and shortage expected, it will be difficult to find and retain such talent.
- Consider Nearshore Talent: Hire nearshore engineers from nearby countries like Mexico or Canada avoids visa costs and delays. Rates are $40-$60/hour, compared to $80-$120 in the U.S. Time zone alignment makes teamwork smooth, but it’s not the only path.
- Use Automation and AI: Tools like AI or low-code platforms can handle repetitive tasks, reducing the need for pricey hires. This stretches your budget without relying solely on global talent.
- Explore Alternative Visas: Look into L or TN visas for specific roles, which may have lower costs. These can be options for critical hires, but legal advice is key to ensure compliance.
- Strengthen Remote Processes: With fewer onsite hires, improve tools for managing distributed teams. Platforms like Slack or Jira can keep projects on track, no matter where talent is based.
| Cost Type | H1B Way | Nearshore Way | Savings |
|---|---|---|---|
| Fees/Legal | $110,000+ ($100K fee) | $0 | $110,000 |
| Yearly Salary | $120,000 | $80,000 | $40,000 |
| Benefits/Extras | $18,000 (15%) | $0 (0%) | $18,000 |
| Training Costs | $4000 | $2000 | $2000 |
| Total Year 1 | $247,000 | $81,000 | $170,000 |
