Over the past eight years, Indian IT companies have reduced their reliance on H-1B visas by 56%, while US tech giants like Amazon, Microsoft, and Google have emerged as leading sponsors, adapting to stricter immigration policies and evolving business models.

Indian IT Reduces H-1B Visa Use by 56%; US Tech Giants Step Up Sponsorships

Introduction

Over the past eight years, Indian IT companies have significantly reduced their reliance on H-1B visas, with a 56% decrease in applications. This shift reflects broader changes in global talent mobility, stricter U.S. immigration policies, and the evolving dynamics of the tech industry. In contrast, U.S. tech giants such as Amazon, Microsoft, and Google have increased their H-1B sponsorships, continuing to attract skilled talent from India.

Decline in Indian IT H-1B Sponsorships

Leading Indian IT firms, including Tata Consultancy Services (TCS), Infosys, Wipro, HCL Technologies, Tech Mahindra, and LTIMindtree, have collectively reduced their H-1B visa applications by an average of 46% over the past five years. For instance, TCS, despite being one of the top sponsors, filed for 5,505 H-1B visas in fiscal year 2025, a significant decrease from previous years.

This decline is attributed to several factors, including rising operational costs associated with H-1B visa processes, complex immigration regulations, and increasing political pressure in the U.S. to prioritize local employment. Additionally, the advent of generative AI and automation has prompted Indian IT companies to adopt new business models, such as nearshoring and local hiring, to mitigate visa-related challenges.

Rise of U.S. Tech Giants as Top H-1B Sponsors

In contrast to the decline among Indian IT firms, U.S. tech giants have emerged as leading sponsors of H-1B visas. Companies like Amazon, Microsoft, Google, Apple, and Meta have consistently ranked among the top sponsors, leveraging the program to attract skilled Indian professionals for roles in software development, artificial intelligence, and cloud computing.

For example, Amazon, with its extensive operations and hiring needs, has maintained a strong presence in the H-1B sponsorship arena, filing for a substantial number of visas annually. Similarly, Microsoft and Google continue to sponsor a significant number of H-1B visas, reflecting their ongoing demand for specialized talent in emerging technologies.

Factors Influencing the Shift

Several factors have contributed to the shift in H-1B visa sponsorship patterns:

• Stricter Immigration Policies: Recent changes in U.S. immigration laws, including increased scrutiny and higher application fees, have made the H-1B process more cumbersome and expensive for employers.
• Political Pressures: There is growing political sentiment in the U.S. advocating for the protection of local jobs, leading to calls for reduced reliance on foreign workers through programs like the H-1B.
• Technological Advancements: The rise of automation and AI has reduced the need for large-scale outsourcing, prompting Indian IT firms to reconsider their dependence on H-1B visas.
• Changing Business Models: To adapt to these challenges, Indian IT companies are increasingly focusing on local hiring in the U.S., nearshoring operations to nearby countries, and investing in automation to maintain competitiveness .

Implications for the Global Tech Industry

The evolving dynamics of H-1B visa sponsorship have significant implications for the global tech industry:

• Talent Mobility: The reduction in H-1B sponsorships by Indian IT firms may limit opportunities for Indian professionals seeking to work in the U.S., potentially influencing global talent migration patterns.
• Business Strategies: Indian IT companies may need to reassess their business strategies, focusing more on local markets and investing in technologies that reduce reliance on foreign labor.
• Competitive Landscape: U.S. tech giants’ increased reliance on H-1B visas underscores their commitment to attracting global talent, which may intensify competition for skilled professionals in the tech industry.

The significant reduction in H-1B visa applications by Indian IT firms, coupled with the increased sponsorships by U.S. tech giants, reflects a broader shift in the global tech industry’s approach to talent acquisition. While Indian IT companies adapt to changing immigration policies and technological advancements, U.S. firms continue to leverage the H-1B program to meet their demand for specialized talent. This evolving landscape highlights the need for both Indian and U.S. companies to innovate and adapt to maintain their competitive edge in the global market.

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