The H1B Visa is often criticized for being exploited by outsourcing firms. Do you think stricter regulations or higher fees will solve this issue, or is there a deeper structural problem?
From my perspective, the outsourcing firms are a symptom, not the root cause. The demand for H1B Visas is far greater than the supply. As long as there’s scarcity, people will find ways to game the system. If the U.S. really wants to stop exploitation, it should increase the cap, streamline the process, and focus on quality over quantity. By creating a transparent, merit-based system, there will be less incentive for outsourcing firms to clog up the pipeline. So the problem is less about the firms themselves and more about how the system is structured.
I don’t think higher fees will solve anything. If anything, they punish smaller companies more than large outsourcing firms. Big players in the outsourcing industry can afford these fees easily, while startups or smaller U.S. employers struggle. What’s really needed is a complete redesign of the selection process. Instead of random lotteries, the U.S. should evaluate applications based on skill shortages, salary levels, and industry needs. That way, outsourcing firms won’t dominate the system simply by volume. So yes, there’s a much deeper structural problem here. Higher fees won’t fix it; smarter policies will.
In my opinion, stricter regulations are necessary but not sufficient. Outsourcing firms often flood the system with applications, sometimes even misusing loopholes. This practice clogs up the lottery and leaves genuine employers with fewer chances to hire needed talent. Higher fees might discourage some abuse, but large outsourcing firms with big budgets will still be able to pay. The deeper issue is structural. The system doesn’t differentiate between legitimate employers and those gaming the system. To fix it, the U.S. should implement reforms like: - Prioritizing employers who directly hire talent rather than subcontract. - Limiting the number of applications per employer. - Ensuring wages match market rates. Without addressing these structural issues, higher fees or regulations will only act as temporary band-aids.