Tata Consultancy Services Reduces H-1B Visa Dependence, Focuses on Local Hiring
In a strategic shift aimed at enhancing its operational framework, Tata Consultancy Services (TCS), India’s largest software exporter, is significantly reducing its reliance on H-1B visas for talent acquisition in the United States. This move, articulated by CEO K. Krithivasan during a recent interview, reflects a broader trend among major IT firms in India as they adapt to changing labor market dynamics and regulatory environments.
Declining H-1B Visa Approvals
According to data from the U.S. Citizenship and Immigration Services (USCIS), TCS secured 5,505 H-1B visa approvals in the fiscal year 2025, placing it second only to Amazon, which had 10,044 approvals. Notably, TCS was the sole Indian IT company among the top ten visa sponsors. This high number can be attributed to TCS’s extensive global workforce, which numbers around 600,000 employees.
Krithivasan clarified that the figure of 5,505 includes not only new applications but also amendments and renewals, indicating a comprehensive approach to visa management. However, he emphasized that the company has actively reduced the number of fresh applications. “In the current financial year so far, we sent just about 500 people on H-1B to the U.S.,” he stated, highlighting a significant decrease in reliance on this visa category.
Industry-Wide Trends
The trend of decreasing H-1B visa issuances is not unique to TCS. Over the past five years, the top six IT employers in India-TCS, Infosys, HCLTech, Wipro, Tech Mahindra, and LTIMindtree-have collectively reduced their H-1B approvals by an average of 46%, according to USCIS data. This decline reflects a broader industry shift towards local hiring and talent development, driven by both economic factors and changing immigration policies.
Emphasis on Local Workforce Transformation
Krithivasan articulated TCS’s vision for a “larger workforce transformation,” suggesting that reducing dependence on H-1B visas will enable the company to hire more locally. This strategy aligns with global trends where companies are increasingly prioritizing local talent to mitigate risks associated with immigration policies and to foster community engagement.
In a recent development, TCS announced plans to create 5,000 new jobs in the United Kingdom, further underscoring its commitment to local hiring. The company opened an AI experience zone and design studio in London, marking a significant investment in its second-largest market. TCS currently supports approximately 42,000 jobs in the UK, both directly and indirectly through its supply chain across 19 sites.
Workforce Adjustments Amid Layoffs
Despite these positive developments, TCS is also navigating challenges within its workforce. The company reported a net reduction of nearly 20,000 employees in the quarter ending September, part of a broader layoff strategy affecting about 2% of its global workforce. As of September, TCS’s headcount stood at 593,314, down from 613,069 in the previous quarter.
This reduction in workforce comes at a time when many IT firms are reassessing their operational strategies in response to economic pressures and evolving market demands. The layoffs at TCS reflect a cautious approach to managing costs while simultaneously investing in future growth areas, such as artificial intelligence and local talent development.
The Future of IT Employment
The shift away from H-1B visa reliance raises important questions about the future of IT employment in the U.S. and India. As companies like TCS pivot towards local hiring, the landscape of the tech workforce may undergo significant changes. This could lead to increased job opportunities for local talent in the U.S. while also fostering a more sustainable employment model for Indian firms.
Moreover, the emphasis on local hiring may encourage a more diverse and inclusive workforce, as companies seek to tap into the unique skills and perspectives of local employees. This approach not only benefits the companies but also contributes to the economic development of the regions in which they operate.
Conclusion
Tata Consultancy Services’ decision to reduce its dependence on H-1B visas marks a significant shift in its operational strategy, reflecting broader trends within the Indian IT industry. As the company focuses on local hiring and workforce transformation, it is poised to adapt to the evolving landscape of global talent acquisition. While challenges remain, particularly in light of recent layoffs, TCS’s commitment to investing in local talent and innovation positions it well for future growth in an increasingly competitive market.
