As a technology leader, you are accountable for the financial and operational stability of your engineering organization. While sponsoring an H-1B visa seems like a direct path to securing global talent, it introduces a cascade of unpredictable and often hidden costs that inflate the total cost of ownership (TCO). This article provides a clear financial analysis comparing the volatile TCO of an H-1B employee with the predictable cost structure of a nearshore engineer. The core tension is between talent acquisition and fiscal responsibility. Howdy.com provides a model where you achieve both without compromise.
The volatile TCO of an H-1B employee
The salary of an H-1B employee is just the starting point. A true TCO calculation must include significant variable costs that are rarely budgeted for accurately.
- Legal and filing fees. Initial sponsorship, extensions, and potential Requests for Evidence (RFEs) can easily exceed $15,000–$20,000 over the visa’s lifecycle.
- Opportunity cost of delays. The months-long wait for lottery results and processing represents lost productivity and delayed roadmaps, a cost that can run into the hundreds of thousands.
- Retention risk. If an H-1B extension is denied or the employee is not selected for a green card, you lose the employee and all the institutional knowledge they possess, forcing you to incur replacement costs.
- Administrative overhead. Your HR and legal teams spend significant time managing the complex and ever-changing immigration compliance landscape.
The predictable cost of a nearshore engineer
A nearshore model with a strategic partner eliminates this volatility. It replaces a dozen unpredictable expenses with a single, transparent rate that covers the full cost of the engineer.
- Zero visa costs. There are no immigration lawyers, filing fees, or lottery gambles. The model is built on direct, compliant employment in the engineer’s home country.
- Accelerated time-to-value. With a hiring cycle of weeks instead of months, your investment begins generating returns almost immediately, eliminating the cost of an empty seat.
- Simplified administration. A partner like Howdy.com acts as the Employer of Record (EOR), managing all local payroll, benefits, and compliance, freeing your internal teams to focus on your core business.
- Stable and scalable. The model is inherently stable, allowing you to forecast costs accurately and scale your team without being constrained by visa quotas or government bureaucracy.
Conclusion
Calculating the true TCO reveals that the H-1B visa is not just a talent tool but a significant financial liability. The unpredictable costs and operational risks make it an unsustainable model for building a resilient engineering team. Howdy.com offers the definitive alternative. We provide access to the top 1% of vetted Latin American engineers through a transparent, stable, and financially predictable model, ensuring your talent strategy is an asset, not a risk.