H-1B demand by Indian firms down 56% in 8 years
What's the story
Indian IT services companies have cut their reliance on the H-1B visa program by a whopping 56% in the last eight years. The data from the National Foundation for American Policy (NFAP) reveals that the approved H-1B petitions for initial employment from India's top seven IT firms, fell from some 15,100 in FY2015 to just 6,700 in FY2023.
Hiring trends
One firm saw 75% drop in approvals
One of the largest Indian IT services companies, which was once the top H-1B sponsor among its peers, has seen a 75% drop in approvals during this period. Meanwhile, the top five US firms together got almost 28,000 H-1B visa approvals in FY2024.
Operational changes
Strategic reduction in visa dependency
Sanketh Chengappa KG, the Director and Business Head of Adecco India, told Moneycontrol that these companies have strategically reduced their dependence on H-1B visas. They are focusing more on local talent development, automation, and diversifying global operations. Now, Indian IT firms employ over 50% local staff in their US operations further reducing visa dependency.
Offshore shift
COVID-19 pandemic accelerated offshore shift
The COVID-19 pandemic has further accelerated the offshore shift for Indian IT companies. Pareekh Jain, CEO of EIIRTrend, said that in the last six years, India's top seven IT firms have been expanding locally in the US through delivery centers and hiring. They have also hired sub-contractors during this time.
Visa dependency
US HIRE Act may not disrupt India's tech industry
In January, India's top IT services firms, including Tata Consultancy Services, Infosys, HCLTech, Wipro, and Tech Mahindra said they have a 20% to less than 50% dependency on H-1B visas for deploying workforce in North America. The US Halting International Relocation of Employment (HIRE) Bill has raised concerns but analysts believe these political moves may not disrupt India's $280 billion technology industry.