Decline in H-1B visa Utilization by Indian IT Companies in the US: Trends and Strategies

The once dominant reliance on H-1B visas by Indian IT companies in the US is experiencing a significant decline in recent years. According to a report by the National Foundation for American Policy, the top seven Indian IT companies have witnessed a staggering drop in approved H-1B visa applications for initial employment, with numbers plummeting by 56% between fiscal year 2015 and 2023.

Major players such as Tata Consultancy Services, Wipro, and Tech Mahindra have seen declines ranging from 62% to 75%, signaling a significant shift in strategy. So what’s behind this trend?

One key factor driving this decline is the focused effort by Indian IT giants to increase local hiring within the US. Companies like Infosys have successfully replicated their talent development model from India in the US, reducing their dependence on visa workers.

Additionally, the rapid adoption of automation and artificial intelligence tools within the IT industry has streamlined tasks, potentially leading to a reduced overall workforce requirement. This, coupled with rising living costs in the US, has made it a less attractive destination for IT professionals seeking to emigrate.

To address the talent gap created by fewer H-1B visas, Indian IT companies are investing heavily in STEM pipeline development. Industry body Nasscom reports that over $1.1 billion has been invested in collaborations with universities to develop a skilled domestic workforce. Additionally, companies are leveraging the existing talent pool of the sizable Indian diaspora residing in the US.

This shift in strategy not only reflects the changing landscape of the IT industry but also highlights the adaptability and resilience of Indian IT companies in navigating challenges in the global market.