IT giant LTIMindtree won't apply for fresh H-1B visas anymore
What's the story
LTIMindtree, one of India's leading IT companies, has announced its decision to stop filing fresh H-1B visa applications from the next US cycle. The company's CEO and MD Venugopal Lambu confirmed the move in an interview with Moneycontrol. The decision comes after a significant increase in the H-1B petition fee for large employers.
Hiring focus
LTIMindtree's strategy shift toward local hiring
Lambu said, "We are hiring, we are hiring locally, and one of the things that I have made clear is that we are not going to make any new applications on H-1B." He clarified that this decision only applies to new petitions in the upcoming H-1B lottery cycle (around March-April) and not renewals of existing visas. The fee hike only applies to fresh petitions and not renewals.
Business impact
LTIMindtree's onsite delivery model
Lambu said the impact on LTIMindtree's onsite delivery model will be limited as the company has already reduced its dependence on H-1B over the years. It has also built a strong local hiring engine in the US. He added, "In the short term, since we already reduced the dependence on H-1B and we had machinery in place to do onsite hiring."
Client needs
Response to client demands for onsite presence
When asked how LTIMindtree would respond if clients demanded more people onsite in the US, Lambu said the company would rely on its existing base in the country and continue local hiring. He said, "We will figure out other ways; otherwise, we have a lot of good population already in the US." This shows LTIMindtree's commitment to meeting client needs while maintaining its local hiring strategy.
Industry trend
Indian IT firms reducing dependence on H-1B visas
Indian IT services companies have significantly reduced their reliance on the H-1B program over the last eight years. Approved H-1B petitions for initial employment from the top seven Indian IT firms fell 56% to 6,700 in FY2023 from about 15,100 in FY2015, according to data from the National Foundation for American Policy (NFAP). This trend shows a shift toward local hiring and reduced visa dependency among these companies.