TL;DR: On September 19, 2025, President Trump signed a proclamation imposing a $100,000 fee on new H-1B visa petitions filed after September 21, 2025. While this fee applies only to new petitions and doesn’t affect current H-1B holders or renewals, the policy change has prompted U.S. tech companies to reassess their talent strategies. Organizations building geographically diversified teams through Build-Operate-Transfer (B.O.T) models and strategic nearshoring in Canada/Latin America are creating resilient hiring pipelines that reduce dependency on single immigration pathways while maintaining access to world-class engineering talent in North American time zones.
The announcement sent shockwaves through the tech sector, underscoring a critical lesson: over-reliance on a single immigration pathway is a strategic risk. The imperative is clear: build resilient talent strategies that can withstand policy shifts.
The September 2025 H-1B policy change has accelerated conversations already underway in many organizations about talent diversification. Several converging forces are driving U.S. tech leaders to diversify their hiring:
Immigration policy uncertainty: The surprise announcement sparked fear and confusion among foreign workers and forced companies who employ them to scramble. After the White House outlined the new policy, some big tech companies instructed H-1B employees who were traveling outside the U.S. to return immediately, expressing concern they might not be allowed to re-enter without the $100,000 payment. This immediate disruption highlighted the risks of depending on single pathways for critical technical talent.
Talent shortages across AI, software development, and cloud engineering: Tech companies face challenges finding enough local talent to satisfy the need for innovation, with experts noting that “the technology talent that is needed to meet the demand of US-based companies is not available in the US, at least not at the scale and price point as it is available in other locations”. Competition for specialized technical skills in U.S. markets continues to intensify.
Cost implications for strategic hiring: The new six-figure fee is expected to hit startups and mid-sized companies the hardest, while giants like Amazon, IBM, Microsoft, Google or Meta may absorb the cost. For organizations without unlimited budgets, alternative talent strategies become essential.
Risk of losing talent to competing destinations: While U.S. companies wrestle with H-1B complexities, other countries are actively positioning themselves as attractive alternatives. China launched a new K Visa aimed at attracting skilled STEM workers, while Canada confirmed the federal government is examining measures to draw skilled workers affected by the fee. U.S. companies that don’t build alternative pathways risk losing access to global talent altogether.
By spreading hiring capacity across multiple geographies—especially nearshore software development teams in Canada and Latin America—US tech companies build safety nets against policy shifts, cost increases, and talent shortages.
This isn’t risk mitigation—it’s building resilient technology teams that can adapt to changing conditions while maintaining delivery momentum.
Nearshoring gives U.S. firms access to deep talent pools with geographic proximity. Unlike traditional offshore outsourcing to distant time zones, nearshore IT staffing for U.S. companies provides seamless collaboration within overlapping work hours.
When you hire developers in Canada or work with nearshore teams in Latin America, you gain:
North American time zone alignment for seamless collaboration: Canadian teams work in identical time zones with U.S. operations, enabling real-time collaboration throughout the workday. Latin America operates in time zones from UTC-3 to UTC-6, allowing at least four hours of daily overlap with U.S. teams for most countries in the region.
No U.S. visa requirements for remote work: Engineers work from their home countries in Canada or Latin America, eliminating the need for H-1B or other U.S. work visas entirely.
Fluent English communication and cultural compatibility: Canadian professionals share language, business practices, and cultural norms with U.S. teams, eliminating communication barriers entirely. Latin American engineers often have strong English proficiency and cultural alignment with North American business practices, though communication standards may vary by country and individual.
Deep technical expertise across modern stacks: Both regions offer specialists in Python, React, AI, machine learning, data engineering, cloud architecture (AWS, Azure, GCP), and platforms like Snowflake—covering the full spectrum of enterprise technology needs.
Operational efficiency compared to U.S.-based hiring: Canadian nearshore hiring provides access to senior technical talent with minimal friction—no visa requirements, no entity setup, and straightforward compliance. While costs are higher than Latin American alternatives, they’re still significantly lower than comparable U.S. markets. Latin American nearshore hiring provides substantial cost advantages—typically 30-40% savings compared to U.S. market rates—while maintaining quality standards.
The premier nearshore destination for U.S. companies seeking senior technical talent without immigration complications. Canada offers:
Canada represents the closest alternative to the U.S.-based hiring—offering the same cultural context, business practices, and professional standards and providing cost efficiencies.
For organizations prioritizing seamless integration, minimal operational friction, and senior-level expertise, Canada is the natural first choice for nearshore expansion.
A compelling nearshore alternative for organizations seeking to scale technical teams rapidly and cost-effectively. Countries like Argentina, Costa Rica, Colombia, Brazil, and Mexico have become nearshore powerhouses—producing highly skilled engineers experienced in agile, product-driven environments.
For U.S. tech leaders seeking long-term workforce resilience, nearshoring isn’t outsourcing—it’s team extension in real time. Canada provides the path of least resistance for organizations prioritizing cultural fit and senior expertise, while Latin America offers compelling economics for teams focused on rapid scaling at optimized costs.
Learn more: IT Staff Augmentation: A Complete Guide for North American Businesses
While nearshore staffing offers flexibility, the Build-Operate-Transfer model provides a structured path to build permanent capability abroad without upfront setup risks.
The B.O.T model is a contractual relationship where a service provider sets up, optimizes, and runs an IT or business process delivery operation with the contractually stipulated intent of transferring the operation to your organization as a captive center.
Unlike traditional outsourcing where relationships conclude with transitions to other providers or back in-house, B.O.T establishes a clear pathway to ownership from day one.
The engagement unfolds in three distinct phases:
Build Phase (Up to 3 months):
Operate Phase (Up to 3 years):
Transfer Phase (Up to 3 months):
This approach isn’t outsourcing—it’s a strategic pathway to ownership, giving U.S. companies the autonomy of an in-house team with the scalability and expertise of a specialized partner.
Deep dive: Build-Operate-Transfer (BOT): Scaling Software & Data Engineering in Uncertain Times.
The world of technical hiring continues to evolve, building talent strategies that depend entirely on single pathways creates vulnerability to factors beyond your control. The September 2025 H-1B policy change represents one data point in an ongoing evolution of U.S. immigration policy. For companies that previously relied on H-1B pathways as their primary strategy for accessing specialized technical talent, recent developments underscore the value of building diversified approaches.
Nearshore software development teams in Canada or in Latin America provide strategic alternatives:
U.S. tech companies adopting B.O.T and/or nearshoring models report more than operational relief—they see measurable strategic gains:
In short, hiring diversification strategies for global IT teams transform talent risk into competitive advantage. DevEngine helps you get there: faster, strategically, and without dependency on uncertain immigration pathways.
More flexible engagement models:
Whether you’re building AI infrastructure, scaling a data engineering function, or expanding delivery capability, DevEngine offers a modern alternative to immigration-dependent hiring strategies.
Explore nearshore staffing and BOT team-building options across Canada and Latin America with DevEngine.