The recent Financial Times report – (https://www.ft.com/content/3cbcf1ea-8e8a-49fa-a4c5-11269d39e0c4) on proposed increases to US work visa fees has sparked concern across the tech sector. For many large organisations, especially Big Tech firms that operate globally, the rising cost of bringing foreign talent into the United States could reshape recruitment strategies and the global distribution of talent. The issue is not just financial; it cuts to the heart of competitiveness, mobility, and how countries position themselves as hubs for innovation.
Big Tech: Shifting Global Hiring Strategies
Large technology companies already operate with globally distributed teams. For them, higher visa fees add a new layer of cost and complexity to hiring in the US.
- Rising barriers to entry: Hiring foreign nationals in the US becomes more expensive, at a time when competition for top-tier talent is already fierce.
- Alternative hubs: If the US talent pool cannot consistently meet the bar for highly specialised roles, companies may shift their focus to alternative locations. Countries in Europe, Canada, and Asia, where hiring is often cheaper and immigration pathways are more predictable stand to gain. Could we even see some of these locations take advantage of the situation to attract organisations into further investment & hiring, by softening visa policies around tech talent.
- Talent decentralisation: Rather than treating the US as the default landing spot, firms may increasingly “follow the talent” into countries offering more flexible regimes for foreign tech workers.
Start-ups: Heightened Risks and Offshoring Trends
For start-ups, the issue is even more pronounced.
- Cost sensitivity: Unlike Big Tech, start-ups must weigh every dollar. The higher upfront visa costs, coupled with uncertainty over employee tenure, could make US-based hiring of foreign workers prohibitive.
- Strategic response: Expect to see more start-ups looking abroad for an affordable alternative, whether through offshoring, hiring fully remote teams, or establishing overseas engineering hubs.
- Risk mitigation: A failed hire in this scenario is not just a disappointment; it can be financially devastating for early-stage ventures.
A Counterpoint: Lessons from Abroad
While it may seem clear that higher visa fees will simply push talent elsewhere, history offers nuance.
Singapore, for example, has at times tightened its foreign talent policies to prioritise local workers. This has:
- Boosted opportunities for Singaporean tech graduates, who found themselves in greater demand.
- Forced companies to design workforce strategies that balance foreign expertise with strong local hiring pipelines.
- Driven investment into upskilling initiatives to expand the local talent base.
The lesson here: restrictions can sometimes accelerate the development of domestic talent ecosystems, though often at the short-term cost of international competitiveness.
Conclusion
The rise in US visa fees may appear at first to be a domestic administrative change, but its consequences are global. Big Tech firms may reallocate headcount to cheaper hubs, start-ups could be forced to rethink hiring altogether, and foreign workers may redirect their ambitions to other nations. At the same time, history shows that tightened restrictions can catalyse local workforce development.
The ultimate question is whether the US is prepared to risk its position as the premier destination for global tech talent, or whether companies and workers alike will simply look elsewhere.
