How Indian IT Firms Are Slashing H-1B Visa Reliance in 2025: Trends, Causes, and Impact

Over the past five to eight years, leading Indian IT companies have significantly reduced their dependence on H-1B visas to hire talent in the US. This strategic shift comes in response to stricter immigration policies, rising visa costs, and growing political pressure within the US to prioritize local employment. Companies like Tata Consultancy Services (TCS), Infosys, HCL Technologies, Wipro, Tech Mahindra, and LTIMindtree have collectively cut their H-1B visa issuances by approximately 46% to 56%, according to multiple data sources. For example, TCS alone dropped from over 10,500 H-1B sponsorships in 2021 to around 5,500 in 2025, though it remains the second-largest H-1B sponsor after Amazon.

Several factors have influenced this trend:

• Complex and Costly Immigration Policies: US immigration mandates have tightened, making H-1B visas harder and more expensive to obtain.
• Political and Protectionist Pressures: There is increasing emphasis on protecting American jobs, which has encouraged IT firms to reduce offshore visa dependence.
• Technology Disruption: The emergence of generative AI and automation is reshaping traditional outsourcing models based on labor arbitrage, encouraging firms to invest in automation and local workforce development.
• Nearshoring: Indian IT companies are expanding nearshore delivery centers closer to their US clients to mitigate visa restrictions and geopolitical challenges.

In contrast, major US tech giants including Amazon, Microsoft, Meta, Apple, and Google continue to actively sponsor H-1B visas to secure specialized talent essential for AI and advanced technology innovation. Moreover, prominent AI research labs such as OpenAI and Anthropic have recently emerged as important H-1B sponsors.

Industry experts describe this transition as part of a broader revolution in labor and technology. The Indian IT sector, traditionally reliant on exporting discounted labor, faces disruption not only from immigration policies but also from AI-driven productivity changes. Consequently, these firms are prioritizing investment in local hiring, process automation, and diversified growth strategies to remain competitive in a rapidly evolving global landscape.

This dual trend—Indian IT firms scaling back visa dependence while US tech companies increase sponsorship—reflects the complex interplay of immigration policy, geopolitics, and technological transformation shaping global talent mobility today.