Toronto — A prominent Canadian-Indian entrepreneur has ignited fresh debate over U.S. immigration policy, declaring that the Trump administration's restrictive H-1B visa rules represent
Vijay Sappani, founder and CEO of Toronto-based Ela Capital, argues the stricter regulations are forcing tech companies to redirect hiring to India, where comparable talent costs significantly less.
Sappani's controversial take comes as the U.S. technology sector grapples with mass layoffs and a fundamental shift in global workforce strategy. The Trump administration has implemented aggressive measures against H-1B visas, the specialized work permits that allow American companies to temporarily hire high-skilled foreign workers, predominantly from India.
Key Facts
• The Trump administration imposed a $100,000 one-time fee on H-1B visa applications in September 2025, alongside stricter vetting procedures and prioritization of higher-wage applications.
• A professional networking survey of nearly 2,400 tech and finance workers revealed that 52% of respondents said their companies plan to increase hiring in India in 2026, with about one-third expecting significant increases.
• Beginning February 27, 2026, a new lottery rule takes effect that offers greater odds to workers placed in the highest of four wage levels, fundamentally reshaping how companies approach international talent recruitment.
Sappani explicitly stated that the policy
This cost-benefit analysis has become the driving force behind corporate hiring decisions across the technology sector.
The stricter H-1B environment has created an unexpected consequence for supporters of restrictive immigration policies. Rather than protecting American jobs, many companies are simply relocating positions overseas entirely, a trend business analysts call "offshoring.
Larger multinational companies like Meta, Amazon, and Microsoft, which maintain significant international operations, are now considering establishing new roles in India, Canada, and Mexico rather than sponsoring foreign workers in America. Smaller firms face even tougher choices, with some struggling to afford the increased costs and complexity.
Indian tech professionals, who comprise the vast majority of H-1B visa approvals, are reconsidering their immigration plans. The combination of the $100,000 application fee, intense social media screening, delayed processing, and employment uncertainty has made moving to America far less attractive.
Countries including Germany, Canada, and others are actively recruiting Indian tech talent, exploiting the window created by U.S. policy shifts. This represents a potential "brain drain" that could undermine American competitiveness in artificial intelligence and other cutting-edge sectors.
Industry experts express serious concern about the long-term implications. Many argue that restricting high-skilled immigration will ultimately harm U.S. economic growth and innovation, particularly as global competition intensifies.
Sappani predicts this trend will accelerate, with increasingly more roles moving permanently offshore. His assessment aligns with industry data showing companies are not merely delaying hiring but fundamentally restructuring their workforce geography.
The debate reflects a fundamental tension in American immigration policy: protectionist measures aimed at safeguarding domestic workers may inadvertently accelerate the very offshore hiring they sought to prevent. Companies facing impossible choices between paying premium fees for foreign workers or relocating operations are increasingly choosing the latter option.
As the Trump administration continues implementing immigration restrictions, the unintended consequence may be a weakening of American tech dominance and a strengthening of India's position as a global technology hub. Watch for further developments as the February 27 lottery changes take effect and companies make critical staffing decisions.
Do You Know?
One study of tech workers revealed that H-1B "entry-level" positions offer a 36 percent discount compared to traditional, full-time American workers. This significant cost differential explains why companies have historically relied on the visa program and why the new restrictions are fundamentally reshaping hiring strategies.
Key Terms
• H-1B Visa: A specialized work permit allowing U.S. companies to temporarily employ high-skilled foreign workers, primarily in technology, engineering, and related fields. The program has an annual cap and requires employer sponsorship.
• Offshoring: The practice of relocating business operations, jobs, or functions to other countries, typically to reduce labor costs or access different markets.
• Brain Drain: The emigration of educated or skilled individuals from one country to another, often to pursue better opportunities, higher wages, or improved living conditions.
• Visa Lottery: The random selection process used to allocate H-1B visas when applications exceed the annual cap. Recent changes prioritize applicants in the highest wage brackets.
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