India’s top IT firms, including TCS, Infosys, Wipro, HCLTech, Tech Mahindra, and LTIMindtree, are reducing reliance on H-1B visas, cutting issuances by nearly 46% over five years. The shift reflects geopolitical pressures, U.S. immigration policies, and AI-driven disruption, prompting local hiring, nearshoring, and automation. The firms currently have half of their workforce locally employed and have significantly invested in delivery centers, AI, and upskilling programs.
Strategic workforce planning and active government engagement aim to safeguard the sector’s growth and ensure resilience amid changing global dynamics.
India’s leading IT services companies are significantly scaling back their reliance on the H-1B visa program, reflecting a mix of geopolitical headwinds and rapid technological change. Over the past five years, the country’s six largest employers—Tata Consultancy Services (TCS), Infosys, HCL Technologies, Wipro, Tech Mahindra, and LTIMindtree—have reduced H-1B issuances by about 46% on average, according to U.S. Citizenship and Immigration Services (USCIS) data.
TCS, with a global workforce of over 600,000 employees, remained a major sponsor in FY25. It secured 5,505 visas, making it the second-largest H-1B filer after Amazon. Yet this represents a sharp drop from the 10,525 approvals it recorded in FY21.
A similar pattern is evident among global consulting firms such as Accenture, Capgemini, Cognizant, and IBM, which cut filings by nearly 44% between FY21 and FY25. By contrast, U.S. technology majors—Amazon, Microsoft, Meta, Apple, and Google—continue to dominate sponsorship, sustaining a steady intake of Indian professionals.
Industry experts suggest the shift is closely tied to changing immigration policies, protectionist politics, and broader geopolitical dynamics. The U.S. is currently debating legislation such as the proposed “HIRE Act,” which would impose taxes on outsourcing, potentially adding fresh compliance burdens and raising costs for Indian IT providers.
Mr Russell A. Stamets, Partner at Delhi-based immigration advisory firm Circle of Counsels, describes the transformation underway as comparable to the industrial revolution. He argues that while anti-immigration sentiment is often seen as the main obstacle, it is the restructuring of labor and productivity models through technology that poses the greater challenge.
According to Mr Stamets, Indian IT firms—traditionally dependent on exporting discounted labor—are now exposed not only to political risk but also to existential threats from artificial intelligence and large language models. Their relative lack of breakthrough innovation, he noted, makes them particularly vulnerable.
The reduction in H-1B reliance reflects how Indian IT companies are reconfiguring delivery strategies. Increasingly, they are prioritizing local hiring in the U.S., nearshoring projects to neighboring markets, and embedding automation into core processes. These shifts are being driven both by political pressure in Western economies to safeguard domestic jobs and by the disruptive potential of generative AI, which is challenging the very foundation of outsourcing-led models.
Indian IT companies are steadily reducing their dependence on H-1B visas by increasing local hiring in the United States and reconfiguring their delivery models. Currently, more than 50% of the workforce employed by Indian IT service providers in the U.S. comprises local staff, a major shift from earlier years when firms relied heavily on temporary visas to serve their largest overseas market.
This recalibration is not a sudden development. Industry experts point out that the strategy of balancing regulatory risk with operational flexibility began almost a decade ago. Since 2012–13, large system integrators such as Tata Consultancy Services (TCS), Infosys, HCLTech, Wipro, and Tech Mahindra have been investing in U.S.-based delivery centers, while gradually scaling up local hiring. The pandemic further accelerated this offshore-plus-local model, prompting firms to strengthen U.S. operations through both direct employment and subcontracting arrangements.
By early 2025, the top Indian IT services companies reported that their reliance on H-1B visas to staff North American operations had declined to between 20% and 50%. This marks a significant departure from past practices, when visa-driven deployment was the backbone of their business models. According to analysts, while U.S. immigration policies and political rhetoric remain factors, the broader trajectory reflects a structural shift rather than a short-term reaction.
The shift is occurring amid increasing scrutiny of outsourcing practices in the United States. The proposed Halting International Relocation of Employment (HIRE) Bill has added fresh uncertainty to India’s US$ 280 billion technology industry. The bill suggests imposing a 25% tax on payments made to foreign firms for services consumed in the U.S., potentially raising costs for American clients who depend on Indian outsourcing firms.
Industry observers, however, believe that the bill is unlikely to pass in its current form. They view these developments as largely political rhetoric, unlikely to cause immediate disruption.
Analysts also believe that despite the noise, the largest Indian service providers remain relatively insulated due to their scale, diversified client base, and long-term investments in U.S. operations.
The changing environment has pushed Indian IT companies to rethink workforce strategies. Local recruitment, significant spending on artificial intelligence, and reskilling initiatives are now central to operations. The emphasis on upskilling ensures that Indian professionals remain competitive in high-value domains.
Mr Ashwini Vaishnaw, Minister of Information Technology, had recently addressed concerns about potential job losses for Indian professionals due to U.S. tariff and visa threats. He stated that India is in active dialogue with global corporations and foreign governments to safeguard the continued growth of its technology industry, amid heightened concerns about a potential outsourcing clampdown by Trump administration.
While Indian IT companies have moved away from heavy H-1B reliance, the U.S. technology product companies have become the largest users of the program. Firms such as Amazon, Google, Microsoft, Apple, and Meta continue to sponsor thousands of visas annually, largely for specialized, high-paying roles such as artificial intelligence engineers, data scientists, and cybersecurity experts. This trend reflects the persistent shortage of niche skills in the U.S. labor market. American firms are leveraging their market power to secure global talent critical to sustaining technological leadership and competitiveness.
At the same time, U.S. technology giants in India, including- Google, Apple, Meta, Microsoft, and OpenAI are intensifying their investments, setting up new engineering hubs, forging AI partnerships, and securing major office spaces in Hyderabad and Bengaluru—underscoring the country’s pivotal role in their global expansion. Over the past year, firms such as Meta (Facebook), Amazon, Apple, Microsoft, Netflix, and Google (Alphabet) have together added more than 30,000 employees to their India workforce.
For Indian IT firms, future growth will hinge on continued diversification. Analysts foresee companies not only bolstering local hiring in the U.S. but also expanding delivery operations into new markets like Japan, Latin America, and beyond, thereby reducing reliance on any single region.
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FAQ
1. Why are Indian IT firms reducing reliance on H-1B visas? Indian IT firms are cutting H-1B dependence due to U.S. immigration scrutiny, geopolitical pressures, and the disruptive impact of AI, prompting a shift toward local hiring, nearshoring, and automation.
2.Which top Indian IT firms have significantly cut their H-1B visa issuances over the past five years? The six largest employers—TCS, Infosys, Wipro, HCLTech, Tech Mahindra, and LTIMindtree—have reduced H-1B visa issuances by around 46% over the past five years.
3. How has TCS’s H-1B sponsorship changed over time? TCS remained the second-largest H-1B sponsor in FY25 with 5,505 visas, down sharply from 10,525 in FY21, reflecting a broader industry trend.
4. How are Indian IT firms adapting their workforce strategies? Companies are boosting U.S. local hiring, establishing delivery centers, nearshoring work, investing in AI and automation, and reskilling employees to reduce visa reliance.
5. Are U.S. technology companies also reducing H-1B use? No, U.S. tech giants like Amazon, Google, Microsoft, Apple, and Meta, continue to heavily sponsor H-1B visas, primarily for specialized, high-paying roles.
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