Indian IT Firms Reduce H-1B Visa Reliance Amid Changing Immigration Landscape
In a significant shift, India’s leading software services companies are increasingly moving away from reliance on H-1B work visas for hiring talent in the United States. This trend comes as immigration policies become more complex and costly, prompting major firms to rethink their strategies for sourcing talent abroad.
Declining H-1B Visa Issuances
According to data from the U.S. Citizenship and Immigration Services (USCIS), the top six Indian IT employers-Tata Consultancy Services (TCS), Infosys, HCL Technologies, Wipro, Tech Mahindra, and LTIMindtree-have collectively reduced their H-1B visa issuances by an average of 46% over the past five years. This decline reflects a broader trend in the industry, as companies adapt to evolving immigration regulations and economic pressures.
In fiscal year 2025, TCS stood out as an exception due to its substantial global workforce of approximately 600,000 employees. It remained the second-largest sponsor of H-1B visas, issuing 5,505 visas, trailing only behind Amazon, which continues to lead in this area.
Broader Industry Trends
This trend is not limited to Indian firms. Global IT consulting giants such as Accenture, Capgemini, Cognizant, and IBM have also reduced their H-1B filings by an average of 44% between fiscal years 2021 and 2025. In contrast, major tech companies like Amazon, Microsoft, Meta, Apple, and Google have consistently ranked as the top sponsors of H-1B visas, continuing to attract Indian talent to the U.S. workforce.
Emerging players in the artificial intelligence sector, such as OpenAI and Anthropic, have also begun to sponsor foreign talent. OpenAI sponsored 76 H-1B visas in fiscal year 2025, a slight increase from 75 in the previous year, while Anthropic backed 41 applications, indicating a growing demand for specialized skills in AI development.
The Impact of Immigration Policy and Geopolitics
The shift away from H-1B visas occurs against a backdrop of changing immigration policies, rising protectionism, and geopolitical tensions that are reshaping global talent mobility. The U.S. is currently debating new legislation, including the proposed ‘HIRE Act,’ which aims to impose taxes on outsourcing. Experts suggest that these developments could create additional operational challenges for Indian IT companies and complicate worker mobility.
Russell A. Stamets, a partner at the Delhi-based immigration advisory firm Circle of Counsels, commented on the evolving landscape. “The traditional models of labor and productivity are being upended by major technological changes equivalent to the industrial revolution,” he stated. He emphasized that the anti-immigration sentiment is overshadowed by a broader restructuring of work dynamics.
Vulnerabilities in the Indian IT Sector
Stamets also pointed out that Indian IT firms, which have historically relied on exporting discounted labor, are increasingly vulnerable to political shifts and existential threats posed by advancements in artificial intelligence. “Lack of genuine innovation has left such companies extremely vulnerable,” he added, highlighting the need for these firms to adapt to the changing technological landscape.
Reshaping Delivery Models
The decline in H-1B visa reliance underscores a significant transformation in how Indian IT firms are structuring their operations. Many companies are ramping up local hiring in the U.S., nearshoring work to nearby countries, and automating processes to enhance efficiency. This shift is partly a response to growing political pressure in Western markets to protect local jobs, as well as the rise of generative AI technologies that threaten traditional outsourcing models.
In contrast, U.S. tech giants are doubling down on bringing Indian engineers onsite. Their reliance on specialized talent pools is crucial for building and scaling AI products, which are increasingly central to their business strategies.
Conclusion
The evolving landscape of H-1B visa reliance among Indian IT firms reflects broader trends in immigration policy, technological advancement, and geopolitical dynamics. As these companies adapt to new realities, they are reshaping their operational models to remain competitive in a rapidly changing environment. The future of talent mobility will likely hinge on how well these firms can innovate and respond to both local and global challenges.
