Impact of new H1B ban - more US companies would go remote, more would set-up engineering hubs elsewhere like Canada, India. Love to hear some more predictions on how things would evolve?

Twitter, Box, Slack, Coinbase, Facebook, Shopify have already announced work from home (partly driven by COVID) but now this trend would only grow, giving companies access to talent anywhere.

While it’s wishful to think that tech hubs all over the world will be in bloom and people will now be working from India or China or Europe. I suspect that’s not going to be the case. The reason is that this has already been tried before with the outsourcing offshore wave, a lot of companies shut their development centers in America and moved operations to India. This however didn’t end all software jobs in America, to the contrary the American job market in IT has expanded as has the market elsewhere. This is because the size of the pie has grown in it’s entirety. One of the things that companies also realized is that there is a lot of overhead in working from non overlapping time zones. So talent everywhere and anywhere is really a myth, there needs to be a lot of cohesion and coordination for remote work to work.

As for the new H1B ban in particular, it doesn’t impact anyone who is already in the USA. It does impact people who were outside America and aspired to move to America. I think this will undoubtedly change their plans and I do foresee a lot of those people wanting to move to Canada and Europe instead of America. The exact implications of that is hard to know, unlike America, Canada has enforced a much stricter lockdown with a much higher job loss and relative economic impact. I think this has the potential to impact the Canadian economy harder and for longer than America and other countries with softer lockdowns. So this definitely creates a favourable situation for American companies looking to hire people abroad, especially in Canada. And also for highly skilled immigrants to move into Canada into these newly created jobs.

But overall there are too many unknowns and I wouldn’t hazard a guess at what the future holds. Remote work is awesome, but it also has many challenges and in most contexts is inferior to the results that cohesive in-person teams can and have proven to deliver.


Great inputs @panditji … really appreciate your analysis on the situation

I’m not talking offshoring due to cost issues but due to talent shortage. Even if the companies don’t go as far as India, Canada for sure is going to immensely benefit from this ban. It’s proximity to the US, similar timezones, fast work visa will see both companies and talent coming to Canada.

1 Like

I agree @deepac , additionally, I think cultural similarities and quality of tech talent are other two factors that puts Canada at an advantage compared to other countries.

1 Like