By Sanjana B
Copyright thehindubusinessline
With a significant portion of the US’s outsourced H-1B workforce being Indian, industry experts warn that India’s heavy reliance on talent exports leaves its IT sector vulnerable to policy shifts like the recent visa fee hike to a $100,000 per application. This highlights the urgency for India to shift toward product-led innovation and the development of home-grown IP.
According to staffing firms, about 70 per cent of America’s outsourced workforce on H-1B visas are Indians, mostly across the Technology, Engineering, and Health sectors. Nearly 3-4 per cent of India’s IT workforce has historically migrated to the US under H-1B and other work visa programs.
Relying heavily on talent exports exposes India’s IT sector to policy volatility and geopolitical shifts in host countries, Sanketh Chengappa KG, Director and Business Head – Professional Staffing – Adecco India, said. Developments like visa fee hikes, regulatory restrictions, or immigration freezes can create sudden operational disruptions for Indian IT professionals and companies.
Additionally, over-dependence on foreign markets may limit domestic innovation, reduce the focus on local product development, and slow the growth of home-grown technology ecosystems.
Neeti Sharma, CEO, TeamLease Digital, explained, “For companies that depend on an onsite workforce, the additional fee hike on H-1B visas will hit their margins massively. The fallout is not just financial; thousands of Indian professionals face career uncertainty whenever such policies shift, showing the fragility of the export-driven model. The Indian IT industry has grown significantly in global services and outsourcing. However, we should focus on being a product first nation now.”
She continued that while services bring scale, they offer limited innovation upside compared to products that generate intellectual property (IPs).
Chengappa echoed this, adding that while global markets remain a key avenue for Indian IT talent, sudden policy changes can influence cost structures and hiring patterns. This underlines the value of balancing international opportunities with domestic growth and offshore delivery models, ensuring that Indian professionals and organizations can continue to thrive regardless of regulatory or economic shifts abroad.
Developing home-grown products and technology platforms allows India to capture more value, strengthen IP portfolios, and reduce exposure to foreign policy shocks.
He added that supportive policies and infrastructure that promote IP creation, patent filing, and product exports will be critical, alongside building domestic demand through local adoption of Indian products before scaling globally. The country can also leverage the overseas experience and knowledge of Indian professionals abroad to further strengthen innovation and capabilities within the country.
“India’s transition to a product-led innovation hub will require a multi-pronged approach combining higher R&D investment, policy incentives, and strong IP protections with systematic ecosystem development. Building specialized talent in product design and management, fostering deep-tech incubators, and strengthening industry-academia collaboration will be critical. India must also integrate its products into global markets through SaaS exports and cross-border partnerships,” said Sharma.
Published on September 22, 2025
