Rethinking Tech Talent Migration: The Rise of LATAM as an H-1B Alternative

The new $100,000 H-1B visa fee represents the most significant cost escalation in the program’s history. This policy change forces tech companies to reconsider their global hiring strategies, particularly startups and mid-sized firms that depend on affordable technical talent. Forrester projects a 2-3% increase in IT service billing rates, translating to a $2 billion annual cost burden across the U.S. tech industry. For many organizations, the visa fee alone now equals or exceeds the first-year salary of entry-level engineers, eliminating traditional cost advantages of international hiring.

GAP’s comprehensive analysis reveals that nearshore engineering teams in Latin America offer 22-50% cost savings compared to U.S.-based H-1B hires over three years—up to $458,000 per engineer. Beyond financial benefits, nearshoring in Colombia, Mexico, and Argentina provides real-time collaboration, faster onboarding, and lower compliance risk. This report examines the full financial impact of H-1B changes and presents data-driven workforce strategies for startups, mid-sized firms, and enterprises navigating this talent migration shift.