Indian IT firms increase subcontractor costs amid AI, H-1B uncertainty
Indian IT companies are shelling out more money for subcontractors, thanks to the huge demand for AI skills and ongoing uncertainty around H-1B visas.
Big names like HCLTech, Wipro, and Tech Mahindra have seen these costs eat up a sizable chunk of their revenue for over a year now.
TCS stands out with the lowest reliance on on-site subcontractors among top players.
Firms favor specialized AI subcontractors
To keep up with fast-changing tech needs, especially in AI, firms are leaning toward hiring specialized subcontractors instead of permanent staff.
It's mostly because skilled AI pros are expensive to hire full-time.
With most business coming from North America, companies are also tweaking their staffing strategies as visa issues push them to look for local talent or short-term help.
Experts say this trend will stick around for a bit, but costs could drop once firms build stronger in-house AI teams.