H1-B Visa Restrictions Likely to Boost Nearshore

Tech giants, including Microsoft, Google and Amazon, warned H1-B Visa employees this week against leaving the country for fear of not being allowed back in, the latest twist in an ongoing conversation surrounding immigration in America. As anxiety rises among U.S. visa holders amid rising deportations and scrutiny, some Nearshore industry experts are saying the dynamic could be beneficial to companies aligned with talent acquisition in Latin America.

The H1-B Visa program brings more than 100,000 highly educated foreigners to the U.S. each year for jobs that pay at least $60,000 per year. Typically, about 500,000 to 600,000 H1-B Visa holders are on American soil at any one time, about 70% of which are Indian nationals.

This week, Indian H1-B workers voiced concerns to The Washington Post about the changes in immigration policy, with one noting the recent revocation of birthright citizenship, meaning the U.S.-born children of visa holders are at risk of becoming stateless upon birth.

The Trump administration has not been consistent with its messaging on H1-B Visas, which was most recently highlighted during a public disagreement between a cohort of Trump supporters and Elon Musk and Vivek Ramaswamy in December.

Musk and Ramaswamy advocated against restricting H1-B Visas as had been done during Trump’s first term. Trump ultimately decided to keep his hands off the H1-B program while signing a slew of executive orders in January that, in part, ordered “enhanced vetting” for visa applicants and those already in the country.

With deportations skyrocketing and continued anti-immigration rhetoric emitting from the White House, experts are warning about the potential business implications that could arise from the increased scrutiny placed on immigration.

Call to Elevate Service

Amid the ever-changing rhetoric and heightened anxiety among visa holders, the situation may provide an opportunity for companies aligned with the nearshoring industry.

“It’s an interesting moment for our market,” said Pablo Baldomá Jones, co-founder and chief executive officer of Alto, a global software engineering firm. “I would describe it as a cocktail of increasing talent predisposition toward remote work combined with this reduction in these visas.”

Jones’ business focuses on connecting talent from Latin America to the U.S. He said if visa intake is reduced, salaries in America will likely rise, which will cause more opportunity and competition in the nearshore market.

“It’s worth noting that nearshore companies present an alternative to H1-B talent, though this pushes providers to elevate their service standards to remain competitive. We’ve particularly noticed that some companies become more hesitant to work with nearshore providers when compliance requirements are stricter, such as in banking. And this drives all LatAm providers to raise the bar regarding security standards.”

Heading for Brighter Pastures

Pablo Miller, chief executive officer of Remoti, a platform specializing in remote talent solutions in Latin America, echoed Jones’ comments on immigration restrictions bringing opportunity to the nearshore industry, and also said it could cause a new influx of talent relocating to Latin American countries.

A dual citizen of Britain and Colombia, Miller said there is a growing trend of Indian tech workers, who traditionally head for Silicon Valley, relocating to Colombia due to new restrictions and concerns.

“When I lived in Colombia years ago, I didn’t see many Indians around, but now when you go there, just walking around the shopping center, it’s noticeable that these tech workers are relocating. There’s a growing number of Indian expats.”
Miller is looking to the upcoming 2026 presidential election in Colombia as a key decider in how the country manages to take advantage of its business opportunities in the future.

Incumbent Gustavo Petro is term-limited, and Miller said whichever candidate shows the most interest in bringing foreign dollars into the country is likely to win the election.

“Who doesn’t want foreign dollars coming into Colombia? Who doesn’t want more jobs in Colombia? But, most importantly, who doesn’t want Silicon Valley knowledge coming into Colombia?” he said. “These companies may not necessarily be building in Colombia, but they’re going to be made in Colombia.”

Riding the Wave of Momentum

Jens Gould, Founder and CEO of Amalga Group, said he has seen some anecdotal evidence of overseas talent moving to Latin America, but hasn’t witnessed first-hand any major shift in the nationality of workers in the nearshoring industry.
Nevertheless, if more quantifiable immigration restrictions were to occur, he also believes it could boost both the nearshore industry and Latin American countries overall.

“In terms of any (potential) immigration policy in the U.S., if they restrict in any way, I actually think that could lead to more interest in services for nearshore companies. … If it’s harder to bring the world’s best talent to the U.S., the companies are still going to need that talent. They’re going to look elsewhere for it, and given the nearshore value proposition that we all know of — the time zone, the cultural affinity, the proximity — it’s the most logical place.”

Gould said recent market factors have given a boost to nearshoring, including a drop in near-term interest rates that has spurred investment in the region.

The Mexican government, which has focused heavily on supporting the manufacturing industry, and other regional governments could do more to support the potential for a nearshoring boom, he feels.

“You see some activity, some investment, in education, particularly tech and engineering, some movement on tax incentives, development of tech hubs, but it’s not nearly enough. Mexico could do a lot more to incentivize this … there’s been a real increase in interest in Mexico’s tech talent, and you haven’t seen the government jump in and do that much.”