Indian technology companies have significantly reduced their dependence on the US H-1B visa programme, even before the latest six-figure visa fee proposal takes effect. The shift reflects a broader change in the way major Indian IT firms operate in the United States, with companies increasingly hiring local workers and expanding their US-based delivery centres.
Indian IT Firms Increase Local Hiring
According to industry body Nasscom, employment under the H-1B programme at Indian technology companies in the US has declined considerably over the past five years. Companies that were traditionally dependent on bringing employees from India have increasingly recruited American workers and graduates locally.
This transition began well before the latest visa-fee changes. Indian IT companies started increasing local hiring after immigration restrictions became tighter during the first Trump administration. The shift accelerated further during the pandemic as remote working made it easier for companies to deliver services without relocating employees to the US.
TCS, Wipro and Infosys Reduce Visa Dependence
Several major Indian technology companies have highlighted their changing workforce strategies.
Tata Consultancy Services (TCS) has said it has significantly localised its US workforce, with around 500 employees travelling to the US on H-1B visas during the fiscal year. Wipro previously reported that more than 80% of its US workforce was local, while Infosys has said that most of its US employees do not require visas.
Data also shows a sharp decline in H-1B approvals among major Indian IT companies. The combined approvals for TCS, Infosys, Wipro, HCL Technologies, Tech Mahindra and Cognizant fell from 18,469 to 11,041 in FY26, a decline of nearly 40%.
Proposed $103,265 H-1B Fee
The development comes as the Trump administration proposes a new $103,265 fee for cap-subject H-1B petitions. Nasscom has urged US policymakers to consider the original purpose of the programme, which is to address temporary skill shortages in the American workforce.
The proposed fee could nevertheless increase costs for companies that continue to rely on new H-1B hires. Analysts have warned that higher costs and tighter immigration rules could affect the economics of Indian IT firms' onsite operations and potentially put pressure on margins.
H-1B Shift Could Benefit India
The changing US visa environment could also encourage Indian technology companies to expand domestic operations. Research cited in recent reports suggests that tighter US immigration policies have previously encouraged skilled professionals to remain in India or return after gaining experience abroad.
Overall, the latest developments show that India's IT industry has already been moving away from heavy H-1B dependence. The proposed six-figure fee could accelerate that transition, pushing companies towards local US hiring, offshore delivery from India and greater use of existing visa holders.
