After US President Donald Trump announced the significant hike in H-1B visa fees, the Indian IT sector has become a lot more concerned. However, the positive, as per the analysts, is that the impact of the H-1B visa application fee hike is expected to be limited on the Indian IT services firms, as per IANS. Analysts suggest that, given their reduced reliance on H-1B visas over the past decade through increased localisation and offshoring, the impact of the hiked visa fees is not going to impact the major Indian IT firms. 

The medium-term implications, on the other hand, could be more pronounced. Reports from the analysts suggest that the elevated cost of delivery in the US may lead to a structurally higher cost base. Therefore, the higher cost of delivery may prompt firms to reassess their operating models and explore mitigation strategies, as per reports.