Indian IT companies have significantly reduced their reliance on H-1B visas in recent years. Data accessed by the Economic Times reveals that the top seven Indian IT services companies have seen a 56% decline in their use of H-1B visas over the past eight years. Conversely, American technology giants such as Amazon and Google have increased their usage of these visas.
Factors Influencing the Decline
Several factors have driven this decline in H-1B visa usage among Indian IT firms. The Trump administration’s policies, which included high denial rates and a stricter immigration regime, prompted Indian IT companies to increase local hiring within the United States. Additionally, the industry shift towards digital services like cloud computing and artificial intelligence has reduced the need for a large workforce.
Data on Visa Decline
According to the National Foundation for American Policy (NFAP), approved H-1B visa petitions for initial employment from the top seven Indian IT companies decreased from 15,166 in fiscal year 2015 to 6,732 in 2023. Tata Consultancy Services, which had the highest approvals in FY15, saw a 75% decline over eight years. Other major players such as Infosys, Wipro, and HCL America also reported significant reductions.
Strategic Shifts in Hiring
Indian IT companies have been strategically increasing their domestic workforce in the US, reducing their reliance on H-1B visas. This shift is part of a broader effort to localize operations and decrease dependence on foreign workers. Companies like Infosys have been replicating their Indian talent model in the US, further diminishing the need for H-1B visas.
Cost and Policy Changes
Recent US government measures to tighten the work visa regime have also impacted H-1B visa usage. The US Citizenship and Immigration Services (USCIS) increased both the H-1B registration fee and the application fee, making the process more expensive. Additionally, a new ‘beneficiary-centric’ approach aimed at reducing fraud has led to fewer eligible registrations.
Impact on Indian Tech Workers
Phil Fersht, chief analyst at HFS Research, noted that the high cost of living in the US and attractive opportunities within India have made relocating less appealing for Indian tech workers. This trend has resulted in a decreased need for companies to sponsor visas for junior or mid-level staff.
American Big Tech Companies’ Trend
In contrast to Indian IT firms, American Big Tech companies like Amazon and Google have increased their H-1B visa usage. Amazon, which was tenth in approved H-1B visas for initial employment in FY 2015, became the top user in FY 2023. Google also moved up in rankings, reflecting a different trend from their Indian counterparts.
