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H-1B vs Nearshoring: What Trump’s $100K Fee Means for Software Teams
- Carlos Martinez
- Sep 24
- 5 min read
The new $100,000 fee for H-1B visas is a real shift for U.S. software teams. For many startups, it changes the calculus of hiring foreign developers and raises questions about whether the traditional H-1B route still makes sense.
Nearshoring is becoming a serious alternative. It gives teams access to skilled developers in nearby regions, accelerates hiring, and removes the need to manage U.S. visa processes.
Let’s compare the H-1B process and nearshoring in terms of cost, speed, legal complexity, and talent availability to understand which approach fits best for teams in 2025.
Why H-1B Is Facing a Tipping Point in 2025
The H-1B visa has long been a primary channel for U.S. companies to bring skilled technical talent into their teams. In software and STEM fields, it supports growth by allowing access to expertise that may be difficult to find locally.
On September 19, 2025, President Trump signed a proclamation introducing a $100,000 fee for new H-1B applications. This change comes with a broader context outlined in the order itself:
Many factors make this a turning point:
Foreign STEM workers in the U.S. doubled from 1.2 million to 2.5 million between 2000 and 2019, while overall STEM employment grew 44.5 percent.
IT roles now make up over 65 percent of H-1B applications, up from 32 percent in 2003.
IT firms account for about 65 percent of recent petitions, with some cases showing large layoffs of U.S. employees alongside high H-1B approvals.
These figures support the administration’s rationale for the fee, showing a clear increase in H‑1B use for IT positions over the past two decades and framing the policy as a targeted measure to address that specific trend.
Key Actions from the Executive Order:
Introduce a $100,000 fee for new H‑1B visa applications for workers outside the U.S.
Apply the fee only to new petitions submitted in the upcoming lottery cycle.
Exempt renewals and existing H‑1B visa holders from the fee.
What It Means for Developers and Employers
The $100,000 fee creates different impact levels across company sizes. Large enterprises can absorb the cost for critical roles, but startups and mid-sized companies face budget constraints that make H-1B sponsorship difficult to justify.
For international developers, the policy reduces sponsorship opportunities, particularly for entry-level and mid-level positions. Companies now evaluate whether specialized roles warrant the significant upfront investment.
The restriction expires in 12 months unless extended after departmental review. This makes long-term planning difficult. Companies must decide now whether to move quickly under current rules or explore alternatives such as nearshoring to secure talent without the extra cost.
Nearshoring as a Strategic Alternative
Nearshoring provides practical advantages for building development teams. It offers time zone alignment, cultural compatibility, and lower costs without the visa complexity or fees of the H-1B process. Key benefits include:
Faster hiring: Onboard developers in weeks.
Lower costs: Hourly rates and operational expenses are generally lower than H-1B sponsorship.
Better alignment: Shared time zones and cultural compatibility simplify coordination.
Technical talent: Access to a growing pool of qualified developers with expertise in modern technology stacks.
Why Colombia Is a Top Choice for U.S. Software Teams
Colombia has quietly become one of the strongest nearshore markets for U.S. tech companies. Here’s why:
Time zone alignment: Bogotá is UTC-5, same as Eastern Time. You get 6-8 hours of real-time overlap daily.
English fluency: Major tech hubs like Medellín and Bogotá have strong English-speaking engineering talent, especially in startups and product-focused firms.
Stability: Colombia has maintained steady economic growth and political continuity, making it a reliable long-term partner.
Nearshoring vs H-1B: Cost, Speed & Legal Simplicity
Let’s compare the two models head-to-head.
Factor | H-1B Visa | Nearshoring |
Cost | ~$108K-$110K in fees plus optional costs | $29-49/hour; senior $29-82/hour |
Hiring Speed | 6-12 months | 1-4 weeks |
Legal Complexity | High - visa process and compliance | Low - local contracts |
Talent Availability | Limited by visa quotas | Growing |
Flexibility | Limited - tied to visa terms | High |
Retention Risk | Tied to visa renewals | Lower |
H-1B Visa Costs: Required and Optional Fees
The proposed $100,000 fee adds to existing expenses. This table breaks down the full cost of sponsoring an H-1B worker.
Fee | Amount | Paid By |
$100K Application Fee | $100,000 | Employer |
Registration Fee | $215 | Employer |
Basic Filing Fee (Form I-129) | $780 (large employers) / $460 (small employers & nonprofits) | Employer |
ACWIA Training Fee | $750 (≤25 employees) / $1,500 (>25 employees) | Employer |
Fraud Prevention Fee | $500 | Employer |
Public Law 114-113 Fee | $4,000 | Employer |
Asylum Program Fee | $600 (>25 employees) / $300 (≤25 employees) / $0 (nonprofits) | Employer |
Premium Processing | $2,805 | Employer or Employee |
H-4 Dependent Fees | $850 (legal) + $470 (filing) | Employee |
10 Top Nearshoring Companies for Software Development
Nearshore firms, especially in Latin America, are becoming a key option for software development. They provide access to skilled engineering teams with shorter hiring times, aligned time zones, and lower costs.
Below are the top nearshoring and outsourcing providers with proven experience in software development.
Company | Locations (Main) | Key Services |
Leanware | Bogota, Colombia | AI consulting, custom software, mobile & web apps, staff augmentation |
ZoolaTech | USA, Mexico, Ukraine | Custom software, cloud migration, DevOps, AI |
Ideas2IT Technologies | USA, Mexico, India | App modernization, enterprise apps, cloud, AI |
Icalia Labs | USA, Mexico | Custom apps, mobile development, UX/UI |
MAS Global Consulting | USA, Colombia | Agile dev, testing, microservices, AI/ML |
Ateliware | Brazil | Custom apps, DevOps, Dynamics 365 |
nCube | Eastern Europe, LatAm | Software dev, team augmentation, R&D |
Future Processing | Poland, UK, USA | Consulting, digital products, cloud, AI/ML |
Evozon | Romania | Web dev, UX/UI, ERP, data science |
Software Mind | USA, Costa Rica, EU | Software dev, consulting, cloud integration |
Getting Started
The new $100,000 H-1B fee makes sponsorship more expensive and adds legal uncertainty. For many startups, this makes the H-1B route harder to justify.
Nearshoring is a practical option. It offers skilled developers, similar time zones, and fewer legal hurdles.
That $100,000 could cover one to two years of a senior nearshore developer’s salary.
If you’re hiring, focus on speed, cost, and legal complexity. Evaluate whether nearshoring or other alternatives work better than H-1B sponsorship.
You can also connect with our team to consult on how nearshoring can work for your startup, technical team, or software development needs.
Frequently Asked Questions
Is Trump’s $100K H-1B fee confirmed?
Yes. Starting September 21, 2025, all new H-1B visa petitions must include a $100,000 fee. This applies to the 2026 lottery and any petitions filed after that date. It does not affect renewals or existing visas. The rule is part of broader reforms, including changes to wage requirements and lottery prioritization, and is currently in effect.
Is nearshoring cheaper than the H-1B visa process?
For most development work, yes. The $100,000 H-1B fee equals 3-6 months of senior nearshore developer time. Total cost comparisons favor nearshoring for most project types and company sizes.
Why is Colombia a top nearshoring destination?
Colombia offers Eastern Time zone alignment, strong technical education, government support for tech sector, and cultural compatibility with US business practices. Cities like Bogotá and Medellín have mature tech ecosystems.
Can startups fully replace H-1B hiring with nearshoring?
Many early-stage and growth-stage companies are successfully using nearshoring to build their core engineering teams. While there are scenarios where having a key employee physically present in the U.S. is necessary, a distributed model can effectively handle a vast majority of software development work. This allows startups to access talent quickly and maintain financial flexibility.
How fast can I hire a nearshore developer?
A reputable nearshoring partner can typically present vetted candidates within one to two weeks. The entire process from initial conversation to a developer starting work can often be completed in under a month. This contrasts sharply with the H-1B timeline, which is measured in many months, if not over a year.
