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H-1B Trouble Deepens as US Firms Shift Hiring Overseas

H-1B Trouble Deepens as US Firms Shift Hiring Overseas

A federal court may have blocked the Trump administration’s controversial $100,000 H-1B visa fee, but employers say the larger concern remains unresolved: an increasingly unpredictable immigration system that is forcing companies to rethink how they access global talent.

A new report from global employment platform Multiplier offers insight into how rapidly changing US immigration policies may be reshaping international hiring.

The report found a 31% increase in global recruitment for engineering, product and data roles between the fourth quarter of 2025 and the first quarter of 2026.

However, the key question is whether the surge is being driven entirely by uncertainty over US immigration policy or whether broader workforce trends are also contributing to the shift.

Experts say several factors are at play.

Companies have traditionally hired internationally to reduce labour costs. However, Multiplier’s newly released Global Hiring Gap Report suggests that the strategy is changing.

According to the report, only 9% of organisations now expand globally primarily to save money. Instead, employers are increasingly searching for specialised technical talent wherever it is available, rather than relocating workers to the United States.

The report also notes that the rise in international hiring coincided with tighter US visa policies introduced in late 2025. This suggests that immigration uncertainty is accelerating a broader transition from relocation-based hiring to distributed global teams.

In an interview with The American Bazaar, Multiplier CEO and co-founder Sagar Khatri discussed how the ongoing H-1B legal battle is influencing the move towards borderless employment and what US companies can do to build more resilient talent pipelines amid policy uncertainty.

Is the Court Ruling a Major Victory?

Asked whether the federal court ruling blocking the proposed $100,000 H-1B fee represented a meaningful victory or merely a temporary pause, Khatri said the decision was an important legal development.

“The June 2026 federal court ruling in Massachusetts was certainly a vital legal boundary marker, as it framed the increased cost as an unlawful tax rather than simply a fee,” he said.

However, he cautioned employers against viewing the decision as a permanent change in the political environment.

According to Khatri, companies are operating in a highly volatile and litigious environment where conflicting district court rulings and administrative stays can cause enforcement conditions to change from week to week.

He added that the $100,000 fee was only one part of a much broader shift towards a restrictive immigration system.

The transition to a wage-weighted H-1B selection process, which favours senior and higher-paid professionals over early-career workers, has further increased uncertainty for employers.

Khatri said relying entirely on traditional immigration pathways was no longer a practical strategy for business continuity, particularly for small and mid-sized companies.

Why Global Tech Hiring Increased 31%

Multiplier reported a 31% increase in international hiring for engineering, product and data roles between the fourth quarter of 2025 and the first quarter of 2026.

Khatri said the surge was being driven by two parallel forces: the intense demand for specialised skills, particularly in artificial intelligence and digital transformation, and the operational difficulties created by fluctuating US immigration policies.

While companies once looked overseas mainly to reduce costs, he said the priorities of employers had changed significantly.

Multiplier’s Global Hiring Gap Report found that only 9% of organisations expand internationally solely for cost savings.

Instead, businesses are looking for high-quality technical talent wherever it is available because similar skills may not be easily accessible in their domestic markets.

Khatri also pointed out that the timing of the 31% surge coincided with the tightening of US visa regulations in late 2025.

When hiring and relocating international talent becomes an expensive and high-risk lottery, he said, business leaders stop waiting for immigration policy decisions and begin building teams in the countries where skilled workers already live.

The uncertainty is encouraging companies to move away from a relocation-first model and towards distributed global workforces.

Is the H-1B System Too Unpredictable?

The H-1B visa has traditionally served as an important pathway for companies seeking highly skilled international professionals.

However, Khatri said employers were increasingly viewing the visa system as too unpredictable to function as the sole foundation of a long-term workforce strategy.

“Unpredictability is the ultimate enemy of corporate planning,” he said.

According to Multiplier, 37% of businesses consider visa and immigration processing to be a serious operational challenge.

Compliance delays and policy uncertainty mean that the H-1B programme can no longer serve as the only pillar supporting a rapidly growing technology workforce.

Khatri said companies had not lost sight of the value of international talent. The main concern was the operational risk involved in relocating those workers to the United States.

Under the wage-weighted selection system, entry-level and mid-level professionals are expected to face lower chances of securing visas.

When a company cannot be certain that an essential software engineer will be legally permitted to work in the country three months later, the visa process becomes a gamble rather than a reliable workforce strategy.

Companies are therefore not abandoning global talent. Instead, they are abandoning the assumption that highly skilled employees must physically work from a US office.

Shift Towards Localised Global Hubs

Khatri said the employment market was witnessing a structural transition away from the traditional “brain drain” model towards localised global talent hubs.

Rather than relocating professionals, companies are increasingly employing them in their home countries and managing legal entities, payroll, compliance and cross-border payments through integrated global employment platforms.

This allows businesses to access specialised talent while reducing their dependence on unpredictable immigration systems.

The federal court ruling may have temporarily blocked the controversial H-1B fee, but the broader trend appears clear: US companies are increasingly building international teams where skilled professionals already live instead of relying entirely on visas to bring them to America.

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