Navigating New H-1B Policy
On September 19, the U.S. administration issued a presidential proclamation imposing a $100,000 one-time fee on new H-1B petitions filed abroad. The measure takes effect on September 21, 2025, and runs for 12 months, with the option for extension.
Enterprises should map their overall risk exposure, identify internal use of H-1Bs and assess existing providers that are reliant on new H-1B petitions abroad. They should evaluate the overall business case to determine the impact of potential higher onsite costs. Contract reviews are essential, given the increased cost to use H-1B staff, to protect both existing price structures in the agreement and delivery quality. Enterprises should also be sure to clearly define AI adoption and pricing in agreements and make them part of future renewals.
As you navigate these new headwinds and strive to maintain your forward momentum, please know you can lean on the experts at ISG. We're here for you especially when the going gets more challenging in the overall market.
Business Continuity, Tariffs and Cost Optimization
This era of tariffs is creating more pressure on business to be as efficient and nimble as possible to confront and overcome these policy and market changes.
For the past five years, since COVID, we've focused more than ever on our cost optimization offerings to meet growing client need for cost resiliency in the face of challenging business environments. ISG has some of the industry’s top experts at optimizing costs across the entire chain, in a way that is sustained over time – enabling you to maintain your strategic technology bets. This covers a wide range of areas, including all aspects of IT and software. Whether you need quick wins or an actionable plan to bring costs down to a new baseline, we can get you the results you need at the pace of your business.
We're here for you with:
Cost Optimization
We identify quick-win and deep-potential opportunities, working toward both simultaneously via AI-centered expert advisory, market data and execution support. Ultimately, we help you achieve cost resiliency to enable your business to thrive, even through crises.
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Artificial Intelligence
AI adoption and pricing should be clearly defined in agreements and must be part of future renewals to defend against rising costs from H-1B policy changes. We can assess your current contracts and suggest changes to meet best practices and mitigate risk exposure.
Research and Insights
Consumer confidence is down, business uncertainty is high, all while U.S. trade and H-1B policy changes are affecting already-competitive talent battles. Keep your finger on the pulse of impacts to the IT and business services industry.
Contract Management
Review your contracts for H-1B dependencies. Inadequate contract management can lead to value erosion, and it can cost you as much as 15% to 30% of total contract value. We identify risk exposure from H-1B changes, recapture lost productivity and uncover more value in your supplier relationships.
