At a time when the H-1B visa is under attack in the US for snatching away American jobs, data reveals that Indian information technology (IT) services firms have sharply reduced their reliance on the programme over the past eight years, even as American technology giants have become its largest users.
Approved H-1B petitions for initial employment from the top seven Indian IT firms fell 56 percent to 6,700 in FY2023 from about 15,100 in FY2015, according to data from the National Foundation for American Policy (NFAP). One large Indian IT services company, once the top H-1B sponsor among its peers, recorded a 75 percent drop in approvals over this period.
On the other hand, the top five American firms together secured nearly 28,000 H-1B visa approvals in FY2024. And in FY2025, a leading e-commerce company again topped the list with about 10,000 approvals.
“These firms (IT companies) have reacted by tactically scaling down their dependence on H-1B visas, cutting back instead on local talent development, automation, and better diversified global operations,” Sanketh Chengappa KG, Director and Business Head of professional staffing firm Adecco India, told Moneycontrol.
Indian IT companies now employ over 50 percent local staff in their US operations, reducing visa dependency further. This push for local recruitment, spending on AI and upskilling, and adjustments to changing policy regimes have necessitated Indian service providers to balance regulatory risk with operational agility.
The pandemic further accelerated the offshore shift. “In the past six years, the top 7 Indian IT companies have been expanding locally in the US through delivery centres and hiring. In the interim, they hired sub-contractors,” said Pareekh Jain, CEO of EIIRTrend.
Industry analysts also agree that the trend is not sudden but part of a long shift in delivery models.
“This trend has happened in the past few years, but the seeds were planted at least 7-8 years ago,” Ashutosh Sharma, VP and Research Director at Forrester, told Moneycontrol.
Reducing Dependency: IT Firms
In January, IT services majors and the largest employers in the country, including Tata Consultancy Services (TCS), Infosys, HCLTech, Wipro, and Tech Mahindra, said they have 20 percent to less than 50 percent dependency on H-1B visas to deploy workforce in their core market, North America.
The current scrutiny and political noise may cause some impact, but the larger Indian IT firms are insulated.
Also, read: Top 5 Indian IT companies have less than 50% dependency on H-1B visas
While the US HIRE Bill is coming now, there’s a lot of anger on the ground in the States, as the administration too is vocal about it. H-1B has always had very strict compliance requirements. “Over the years, since 2012-13, many of the large SIs (System Integrators) have started building delivery centres at various US locations and hiring locally,” Sharma further said.
The recent US Halting International Relocation of Employment (HIRE) Bill, introduced by a private member in the US Senate, alongside tariff warnings from former Trump trade adviser Peter Navarro, has also added fresh gunpowder to unsettle India’s IT industry.
However, analysts believe these moves represent political noise and may not pose imminent disruption for India’s $280 billion technology industry.
Also, read: US HIRE Bill clouds Indian IT outlook but faces steep political hurdles
The bill proposes a 25 percent tax on certain payments to foreign firms for services consumed in the US, but experts say it is unlikely to pass in its current form. Still, the rhetoric adds uncertainty to India’s $280 billion outsourcing industry.
In an interview with Moneycontrol, Ashwini Vaishnaw, Minister of Information Broadcasting, Electronics and IT, addressed the fears of Indian IT professionals losing jobs amid US tariff threats.
He stated that India is actively engaging with global corporations and foreign governments to ensure the Indian technology industry continues to thrive, despite rising concerns over a potential crackdown on outsourcing by Trump.
Increasing Dependency: US Firms
Meanwhile, US-based technology product companies have emerged as the heaviest users of the visa programme.
Unlike outsourcing firms, these companies use the visa for high-paying specialised roles such as engineers, AI specialists, and data scientists.
Chengappa said this reflects the persistent shortage of niche skills in the US. “American technology leaders, subject to ongoing needs for specialised skills, have a large dependence on the H-1B program, leveraging their market power to attract world-class professionals essential to technological leadership and competitiveness,” he further said.
Back home, American tech giants like Google, Apple, Meta, Microsoft, and OpenAI are ramping up investments in India. From new engineering hubs to AI partnerships and major office leases in Hyderabad and Bengaluru, India remains a critical part of their global growth strategies.
Subsequently, companies such as Facebook (Meta), Amazon, Apple, Microsoft, Netflix, and Google (Alphabet), have collectively hired over 30,000 employees in India over the past year.
But for IT companies of Indian origin, there is a larger anti-immigration sentiment growing, and only very highly skilled and high-paying professionals would get access to specialised visas.
“At a business level, IT companies will start diversifying to other geographies such as Japan, LATAM and others, outside the US, for both clients and delivery centres,” according to Jain.
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