India's third-largest information technology IT services major HCLTech’s reliance on H-1B visas is among the lowest in the industry, with the company reporting that 80 percent of its workforce in the US comprises local talent.
The comments assume significance as there’s growing discussion on how the new US administration, led by incoming President Donald Trump, might treat the H-1B visa eligibility issue. Trump will be sworn in on January 20 as President of the country that generates the majority of revenue for IT companies.
“Our dependence on H1-B is minimal,” said Ramachandran Sundararajan, Chief People Officer, HCLTech, while addressing the press after declaring the third quarter results ending December 31, 2024 (Q3FY25).
H-1B visas are a non-immigrant visa that allows US companies to employ foreign workers in specialty occupations such as science, technology, engineering, mathematics (STEM) and IT. IT companies such as TCS, Infosys, HCLTech, and Wipro send their employees to the US on these visas.
Indian IT services giants including TCS, Infosys, Wipro, HCLTech America and Tech Mahindra accounted for nearly 20 percent of H-1B visas approved in 2024 in the sponsorship space, according to data sourced from staffing firm TeamLease Digital.
Sundararajan added that the company has maintained this approach for the last four years. “In the US, about 80% of our people are locals. The number of H1-Bs we go through annually ranges between 500 and 1,000 at most,” Sundararajan added.
IT sector’s bellwether and HCLTech’s rival TCS told Moneycontrol in interview that the company is “not worried” about the ongoing discourse within incoming Trump administration in the US over H-1B visas.
Chief Executive Officer and Managing Director K Krithivasan said that more than half of its workforce in the US are locals, a region that contributes nearly 50 percent to TCS’ revenue.
Despite the low reliance on visa-based talent, HCLTech Chief Executive Officer C Vijayakumar highlighted uncertainties in the broader business environment. “It is quite possible that the global business environment could see significant changes in the coming quarters. However, how that will affect spending patterns or client priorities is not something we have clear insights into at this time,” he told the press.
Vijayakumar also said that while the company does not expect immigration-related topics to affect its operations significantly, other external factors influencing clients’ businesses could have an impact.
“We largely think our business impact will be business as usual (BAU), at least from any immigration-related topics. But other things could impact our clients and, in turn, us. That is not something we have factored in or planned for at this time,” he said.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
