Decline in Indian IT Firms' Use of H-1B Visas by 56% in 8 Years

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Key Takeaways:

Indian IT companies reduced H-1B visa reliance due to increased US local hiring and adoption of advanced technologies.
Trump’s policies and higher visa costs led to decreased H-1B approvals, with significant drops for top Indian firms.
Opportunities in India and large investments in US STEM education have reduced the need for H-1B sponsored workers.

Why Has Indian IT’s Reliance on H-1B Visas Declined Over the Past 8 Years?

India’s top seven IT services companies have significantly reduced their dependence on H-1B visas over the past eight years. Data from the National Foundation for American Policy (NFAP) shows a striking 56% decline in the usage of this prominent US work visa program. What has driven this significant change?

Decline in Indian IT Firms' Use of H-1B Visas by 56% in 8 Years

What Factors Contributed to the Decline in H-1B Visa Usage by Indian IT Companies?

Several factors have contributed to the reduced reliance on H-1B visas by Indian IT companies.

Increased Local Hiring in the US: Indian IT firms have augmented their domestic workforce in the US. According to Stuart Anderson, NFAP’s executive director, “The number of new H-1B petitions for Indian companies declined because the companies built up their domestic workforce in the United States.”
Technological Advancements: Indian companies are increasingly utilizing digital services such as cloud computing, bots, and artificial intelligence, reducing the need for as many workers on H-1B visas.
Trump Administration Policies: High denial rates during the Trump administration and a tightening of the immigration regime have also played roles.

Combining these factors has led to a notable shift in how Indian IT companies operate in the US.

What Do the Numbers Say?

The numbers speak volumes about this trend. Approved H-1B visa petitions for initial employment in the US from the seven top companies fell from 15,166 in fiscal 2015 to 6,732 in 2023. Here’s a closer breakdown:

Tata Consultancy Services witnessed a 75% decline from 2015 figures.
Infosys saw a 21% drop.
Wipro faced a 69% reduction.
HCL America experienced a 46% fall.

The diminishing figures highlight Indian firms’ enhanced local hiring efforts and the broader industry trend of leveraging digital solutions.

How Has the US Government’s Stance Affected H-1B Usage?

Recent changes by the US government have made obtaining H-1B visas more challenging and expensive. The US Citizenship and Immigration Services (USCIS) increased the H-1B registration fee to $215 from $10 and the application fee to $780, up from $460. Additionally, a $600 ‘asylum fee’ has been introduced, increasing the overall cost of obtaining an H-1B visa.

Furthermore, the USCIS reported a 40% decline in eligible registrations from 758,994 for FY 2024 to 470,342 for FY 2025. This decline is attributed to a new ‘beneficiary-centric’ approach aimed at reducing fraud.

What Role Have American Big Tech Companies Played?

While Indian IT companies have reduced their H-1B usage, American big tech companies like Amazon and Google have experienced the opposite trend. Amazon, which ranked tenth in terms of approved H-1B visas for initial employment in FY 2015, rose to the first spot in FY 2023. The company saw a 279% increase, with approved visas jumping from 1,070 in 2015 to 4,052 in 2023. Google, which wasn’t in the top 10 in 2015, ranked fourth in FY 2023.

What Are Indian IT Companies Doing to Adapt?

Indian IT firms have adapted by significantly boosting local hiring and investments in the US. Shivendra Singh, Vice President of global trade and development at IT industry body Nasscom, pointed out:

“The industry has invested $1.1 billion towards strengthening the STEM pipeline in the US, is working with over 130 colleges and universities, and has upskilled 255,000 employees.”

This effort has helped create and support over 600,000 jobs in the US, both directly and indirectly.

How Are Opportunities in India Influencing the Trend?

The opportunities for IT professionals within India have also improved remarkably. As Phil Fersht, chief analyst at HFS Research, explained:

“There is less need to sponsor visas to bring in more junior or mid-level Indian staff. It hurts the cost-effectiveness of the Indian services model to keep accelerating the immigration of more Indian tech workers.”

The higher cost of living in the US, contrasted with burgeoning opportunities within India’s IT sector, has made it less appealing for Indian tech workers to move to the US.

Are Indian Companies Likely to Increase Their H-1B Usage in the Future?

The current trajectory suggests that the use of the H-1B program by Indian companies is unlikely to ramp up significantly. Instead, companies are expected to continue expanding local hires in the US and leveraging more advanced technologies requiring fewer workers.

“The companies will almost certainly expand local hiring in the US when possible and follow the trend of using more technology,” noted Stuart Anderson.

Conclusion

In summary, the decline in H-1B visa usage by Indian IT companies over the past eight years is the result of multiple intersecting factors. From increased local hiring and technological advancements to stricter US immigration policies and enhanced opportunities within India, these elements have collectively reshaped the operational landscape for Indian IT firms in the US.

For more detailed information regarding the H-1B visa and eligibility criteria, you can visit the official USCIS website.

The continually evolving employment landscape underscores the importance of adaptability and strategic planning for both Indian IT companies and IT professionals seeking to navigate career opportunities across borders.

Learn Today:

Glossary and Definitions

H-1B Visa: A non-immigrant visa that allows US companies to employ foreign workers in specialty occupations requiring theoretical or technical expertise, often used by IT companies to hire international talent.
USCIS (United States Citizenship and Immigration Services): The federal agency overseeing lawful immigration to the United States, responsible for processing visa applications, including H-1B visas.
Local Hiring: The practice of employing workers who are citizens or permanent residents of the country in which a company operates, in this context, referring to Indian IT companies hiring within the United States instead of relying on H-1B visas.
STEM: An acronym for Science, Technology, Engineering, and Mathematics, fields often requiring specialized skills and associated with higher demand for H-1B visas for qualified professionals.
Denial Rates: The percentage of visa applications that are rejected by the immigration authorities. Higher denial rates during specific administrations can make it more challenging for companies to secure visas for foreign workers.

This Article In A Nutshell:

Indian IT companies reduced reliance on H-1B visas due to US local hiring, tech advancements, and Trump policies. Approval rates dropped, costs rose, and big tech increased usage. Indian firms invest in US hires and skills. As India’s IT scene improves, less reliance on H-1B visas is expected. Staying tech-savvy is key.
— By VisaVerge.com