The H1B visa changes introduced recently 2025 is already reshaping how U.S. firms rethink how they access global talent. As remote work and global hiring in 2026 become mainstream, companies are evaluating H1B visa alternatives for U.S. employers. With more agile expansion strategies and diversified talent hubs to stay competitive, these shifts drive new momentum in global tech hiring, offshore software development for U.S. companies, and nearshore tech hiring trends.
In this blog, we cover:
- Confirmed and proposed H1B policy changes
- Why U.S. firms are accelerating global hiring and remote expansion
- Top countries to build tech teams in 2026
- How to choose between EOR vs entity setup for remote tech teams
- A decision framework and FAQs to support your strategy
What’s Changing in the H1B Visa Program by 2026?
Several significant changes and proposals are affecting how H1B hiring will look going into 2026. It’s critical for U.S. companies engaged in global tech hiring and planning 2026 expansion to track these carefully
H1B Modernization Rule (Effective January 17, 2025)
USCIS released a final rule in 2024, effective January 17, 2025, which updates how H1B petitions are adjudicated. Key changes include:
- A new version of Form I‑129 required for filings after January 17, 2025
- Stronger program integrity measures (e.g., more compliance, audit, fraud prevention)
- Clarifications to specialty occupation definitions
- Adjustments in how USCIS treats multiple registrations and duplicate filings
These reforms already affect how companies plan H1B filings and compliance workflows.
New H1B Fee and Wage-Based Selection Framework (Effective September 2025)
As of September 2025, the Trump administration has proposed and implemented numerous important modifications to the H1B application procedure and costs.
New $100K One-Time H1B Filing Fee
A new one-time fee of $100,000 has been proposed for new H1B petitions filed on or after September 21, 2025. Key details include:
- Applies only to new applicants outside the U.S.
- Does not apply to H1B renewals or existing visa holders
- Fee is non-recurring and not an annual charge
- Introduced to deter foreign hiring and encourage domestic recruitment
This move has sparked legal concerns, with immigration attorneys arguing the fee far exceeds standard processing costs and may be challenged in court as exceeding executive authority.
Proposed Wage-Based Selection to Replace Lottery System
The Department of Homeland Security (DHS) has put forward a new tiered, weighted selection approach that would replace the current random lottery for H1B visa registrations. The intention behind this system is to prioritize higher-skilled and higher-paid candidates.
Under this framework, applicants would be classified into four wage levels. These wage levels would be based on the salary offered, with higher wage levels receiving more entries in the selection pool, as follows:
- Wage Level IV: Four entries into the selection pool for applicants in the highest wage tier (e.g., those earning over $162,528, as of late 2025)
- Wage Level III: Three entries
- Wage Level II: Two entries
- Wage Level I: One entry
Who will be Impacted?
These proposals, while still under public comment and not finalized, are already reshaping hiring discussions in U.S. tech companies:
- Startups and small businesses face a disproportionate burden due to the high fee
- Entry-level and international student hires may be priced out entirely
- Companies are re-evaluating offshore hiring and exploring global expansion as a hedge
- Existing H1B holders remain unaffected for now, but future policy shifts may change renewal dynamics
Together, the proposed fee and selection system mark a shift away from a lottery-based approach toward one that prioritizes salary level over randomness, potentially creating a hiring landscape where only the highest-paying roles can access international talent.
Why U.S. Companies Are Looking Abroad for Tech Talent?
Given the intensifying challenges around H1B, many firms now view global tech hiring and remote tech teams not just as fallback strategies, but as core components of their 2026 expansion plans.
More companies are turning to H1B visa alternatives and building remote tech teams across borders. Here’s why:
Given the intensifying challenges around H1B, many firms now view global tech hiring and remote tech teams not just as fallback strategies, but as core components of their 2026 expansion plans.
Rising Cost, Risk & Uncertainty
Administrative complexity and regulatory unpredictability continue to drive up the burden of H1B filings. Recent changes introduced in the 2025 USCIS modernization rule have added stricter compliance, more documentation, and increased processing scrutiny.
Combined with the persistent lottery-based allocation system and more rigorous adjudication standards, these factors make H1B hiring less predictable. Petitions for early-career or marginally qualifying roles now face higher denial risks. Employers are increasingly seeking diversified workforce strategies to reduce dependency on uncertain U.S. immigration outcomes.
Remote Work is Now Operationally Normal
The pandemic catalyzed widespread adoption of distributed workflows. Today, tools, processes, and organizational culture make it easy to manage and support remote tech teams across time zones without losing productivity. You can build cohesive remote hubs across geographies without forcing relocation, and synchronous overlap is less necessary with strong asynchronous practices.
Talent Strategy Diversification
Building a tech team entirely in the U.S., or entirely dependent on one visa path, introduces unnecessary risk. Companies are proactively diversifying through nearshore outsourcing, EOR partnerships, multi-country hiring strategies, and legal entity setups.
- Relying on a single visa route or region is fragile
- A diversified location stack across Asia, Europe, Latin America reduces geopolitical/regulatory risk
- Strong complementarity (e.g. combining India + Eastern Europe + Latin America) often yields the best balance
Cost Efficiency & Talent Quality
Regions like Eastern Europe, Southeast Asia, and Latin America provide highly skilled developers at significantly lower costs than U.S. metros. As IT outsourcing trends post-H1B changes accelerate, these cost advantages become more critical to maintaining margins. Having said that, proper oversight and integration via EOR or entity models allow high control with cost advantage.
Quality, Culture & Delivery
Hiring directly via a local legal entity setup gives you more control over processes, culture, and accountability unlike traditional outsourcing, which often separates delivery from strategy. With entity setups or local hiring, you integrate remote teams more closely with U.S.-based engineering leadership.
These drivers make global tech hiring and 2026 expansion strategies far more crucial than before. The question now is not whether to look abroad, but where, how, and with what mix you build sustainable remote tech teams.
Beyond H1B: Alternatives to Build Global Tech Teams
U.S. companies are increasingly choosing alternative paths that sidestep immigration challenges and allow them to tap into global tech talent directly. Here are practical options U.S. companies can explore to scale and stay flexible without relying on H1B visas:
L‑1 Intracompany Transfers
If your business already has a foreign affiliate or is planning one, you can transfer qualified employees via L‑1A (executives/managers) or L‑1B (specialized knowledge). This route bypasses the H1B lottery, though it has its own qualifications and documentation requirements.
O‑1 Visa (Extraordinary Ability)
For exceptionally accomplished technologists with strong credentials, industry recognition, or awards, the O‑1 visa is an option. It’s hard to qualify, but for the right candidate, it can provide a workaround.
EB‑2 / EB‑3 & National Interest Waiver (NIW)
Green card paths via employer sponsorship or NIW can avoid lottery risk. However, processing times, backlog, and complexity remain hurdles.
Independent Contractors / Freelancers Abroad
Hiring external contractors or agencies in foreign markets avoids U.S. immigration entirely. But you must manage IP, tax withholding, local compliance, and quality oversight.
Foreign Subsidiaries
Set up your own tech centers in other countries (e.g. in India, Eastern Europe, Latin America) and hire locally according to local laws and regulations. This gives more control and integrates more tightly with U.S. teams.
Employer‑of‑Record (EOR) Model
Start with an interim solution, an EOR model (which handles payroll, compliance, benefits) to hire local staff then gradually transition to direct entity when scale justifies it.
Legal Entity Setup
By setting up a legal entity such as a branch or subsidiary in a foreign country, you can enable direct hiring and long-term scalability. Setting up a legal entity lets U.S. companies hire talent directly, manage payroll and benefits in-house, and build a permanent presence in strategic tech hubs.
Cerity Global specializes in helping companies navigate the complexities of global expansion across 170+ countries, from entity registration and HR support to global tax and compliance and ensuring your growth is fast, compliant, and strategically aligned with your long-term workforce goals.
Related: US Country Page
EOR vs. Entity Setup: What’s the Right Path?
A pivotal choice for international expansion is whether to set up a legal entity or hire an EOR in a foreign market.
When to Set Up a Local Entity
Creating a local subsidiary or branch gives you full control over operations, branding, and local hiring.
Best for:
- You have sustained headcount growth and deep operational needs
- You want full control over structure, branding, local R&D, IP
- You want to avoid long-term EOR fees or constraints
- You’re ready for local compliance complexity (tax filings, labor laws, statutory benefits, audits)
Cerity Global helps companies set up legal entities, operate compliantly, and expand globally.
Related: Legal Entity Setup in 2025
When to Use an EOR
Allows companies to hire full-time employees abroad without setting up a local entity.
Best for:
Fast market entry
- Quick market entry or testing a location
- Less number of hires
- Minimizing upfront legal, administrative, and tax costs
- Avoiding regulatory risk before committing long term
Cerity Global helps companies transition from EOR to entity at the right time, ensuring a smooth transition, proper employee migration, full compliance, and back-office support like HR, payroll, accounting, tax and compliance.
Related: EOR vs Legal Entity Setup in 2025: Which Is Best for Global Expansion?
Best Countries to Build Tech Teams in 2026?
As the U.S. adjusts to a changing immigration landscape, choosing the right country is a strategic location. You should evaluate talent depth, cost, regulatory stability, time zone compatibility, culture, and risk. Below are some of the best countries to build tech teams in 2026, along with trade-offs.
India
- India remains one of the largest tech talent pools globally and strong tech education
- Time zones overlap with U.S. mornings
- Challenges: wage inflation, competition for senior talent, regulatory complexity
- Still valuable, but should be part of a broader strategy, not the default
Poland, Romania, Ukraine (Eastern Europe)
Vietnam
- Rising significance in offshore software development for U.S. companies
- Excellent cost-to-performance ratio
- Strengths in frontend/mobile/QA/full-stack
- Some risks: regulatory clarity, currency fluctuation, scaling infrastructure
Colombia, Mexico & Latin America
- True nearshore outsourcing advantage, overlapping work hours
- Cultural proximity and language affinity
- Strong growth in Colombia, Mexico, Brazil tech ecosystems
- Ideal for teams needing synchronous collaboration and customer-facing roles
Related: Doing Business in Mexico 2025
Philippines
- Strong English fluency for customer‑facing systems and BPO heritage
- Great for UI/UX, mobile, frontend dev, support systems
- The Philippines is valuable as a hybrid option or for mixed teams
Related: Top 5 Countries U.S. Tech Companies Should Consider Post-H1B in 2026
Other emerging hubs include Kenya, Morocco, and South Africa offer growing engineering ecosystems and global interest, attractive cost basis, riskier infrastructure, regulatory complexity, and scaling challenges. These locations can be best used as supplemental or exploratory locations initially.
How to Decide Where to Build Your Tech Team?
To choose where and how to build your remote tech teams, use this evaluation framework:
Collaboration & Overlap Needs
If teams need frequent synchronous interaction, nearshore or adjacent time zones matter more.
Skill Stack & Domain Alignment
Make sure the region has strength in your required domains (ML, cloud, security, infrastructure).
Regulatory & Business Feasibility
Research entity formation, labor law, tax treaties, IP rights, repatriation rules, and hiring timelines.
Entry Strategy Flexibility
Use EOR or partnerships initially to validate the location viability before committing.
Cost Trajectory & Inflation Modeling
Forecast wage growth. Even low-cost locations can become expensive with demand surges.
Career Paths & Retention Strategy
Ensure local teams have growth, mentorship, internal mobility and don’t let them become “dead–end” hubs.
Pilot and Validate
Start small, evaluate communication friction, productivity, quality, team morale, and integration metrics before scaling.
Governance, Tools & Alignment
Use unified tooling, consistent coding standards, rotational programs, leadership visits, sync rituals, and local champions for alignment.
By applying this rubric across candidate geographies, you can build a resilient, multi‑hub blueprint rather than placing all your bets in one location.
Related: Top 15 Countries by GDP in 2025
FAQ Section
What recent H1B visa changes should U.S. employers know in 2025–2026?
The 2025 H1B modernization rule, effective January 17, 2025, introduced several changes: a new Form I-129, clarified specialty occupation definitions, increased integrity checks, and tighter rules for multiple registrations. These updates directly impact how U.S. companies prepare and manage their filings.
What are the current H1B visa filling costs?
As of late 2025, U.S. companies filing H1B petitions can expect to pay a combination of standard USCIS fees, including registration, base filing, fraud prevention, and training fees. Premium processing remains optional. USCIS has proposed a broader fee review expected in 2026, which may impact these amounts further.
Will the new $100K H1B fee affect current visa holders?
No. As proposed, the $100K fee only applies to new H1B petitions filed on or after September 21, 2025, by applicants outside the U.S. It does not apply to renewals or existing H1B holders. However, this could change in future regulatory updates
What are the best countries to build tech teams in 2026?
Among top choices are India, Eastern Europe (Poland, Romania, Ukraine), Vietnam, Latin America (Colombia, Mexico), and Philippines. Each offers trade-offs in cost, skill, time zone, and regulatory risk.
What are alternatives to H1B visas for U.S. employers?
Alternatives include L‑1 intracompany transfers, O‑1 extraordinary ability, EB‑2/EB‑3 green cards (NIW), contractors abroad, foreign subsidiaries, EOR, and direct entity setups.
Conclusion
As H1B visa changes loom, whether through higher costs, tighter definitions, or processing delays, U.S. companies must adapt. The H1B visa changes have injected new urgency into how U.S. tech firms approach global tech hiring and 2026 expansion.
The future lies in remote work and global hiring in 2026, where companies build resilient, distributed teams across multiple geographies. Reliance solely on traditional visa-based hiring is no longer viable.
To thrive, companies must:
- Adopt H1B visa alternatives for U.S. employers
- Build resilient remote tech teams across a diversified geography
- Leverage nearshore outsourcing vs offshore outsourcing thoughtfully
- Monitor judicial and regulatory developments
- Combine entity and EOR strategies as growth demands
- Use a framework for assessing countries with best talent pools and cost of outsourcing software development 2026
How Cerity Global Can Help
Navigating international hiring, entity setup, and compliance in a post-H1B world can be complex. Cerity Global offers tailored solutions for U.S. companies adapting to the new H1B landscape.
Let us help you build future-proof remote tech teams in 2026.