Big Indian IT companies like TCS and Infosys are spending more on subcontractors, thanks to tighter visa rules and a surge in AI projects.
These higher costs are squeezing their profits, especially as H-1B visa issues make it harder to send employees abroad.
Firms hire graduates, subcontractor costs persist
To tackle these challenges, firms are hiring more fresh graduates directly from campuses in the US and Europe to build their own teams instead of relying so much on outside contractors.
Even with these efforts, reports say subcontractor expenses could stay high for a while because demand for specialized tech skills isn't slowing down.