TCS CEO Announces Shift Away from New H-1B Hiring in the U.S.

What's Happening?

Tata Consultancy Services (TCS) CEO K. Krithivasan has announced that the company will not be hiring new H-1B visa applicants in the near future. Instead, TCS plans to focus on expanding its local workforce in the United States and other key markets. TCS is currently the largest employer of H-1B holders in the U.S., with 98,259 hires between 2009 and 2025, including 5,505 hires in 2025 alone. Krithivasan emphasized that the company has sufficient H-1B visa holders in the U.S. and will prioritize local hiring to meet the demands of new AI-based projects, which require diverse skill sets and closer collaboration with clients.

Why It's Important?

This decision by TCS marks a significant shift in the company's hiring strategy, potentially influencing other major corporations like Amazon, Cognizant, and Microsoft to follow suit. The move could lead to a decrease in demand for new H-1B visas, as companies may opt for L-1 visas for on-site transfers, which are more cost-effective. This shift could impact the U.S. tech industry, which has traditionally relied on H-1B visas to fill specialized roles. By increasing local hiring, TCS aims to enhance collaboration and diversify skill sets, aligning with the evolving needs of AI-driven projects.

What's Next?

TCS plans to continue expanding its local workforce in the U.S. and Europe, focusing on regions like Latin America, the Middle East, and the Asia-Pacific. The company will assess the renewal of existing H-1B visas based on strategic needs. Industry experts predict that other multinational corporations may adopt similar strategies, potentially leading to a broader transition from H-1B to L-1 visa routes for staffing U.S. operations. This could reshape the landscape of visa hiring in the tech industry, emphasizing local talent and reducing reliance on foreign workers.

Beyond the Headlines

The shift away from H-1B hiring by TCS could have long-term implications for the U.S. labor market and immigration policies. It may prompt discussions on the balance between local and foreign talent in the tech industry, influencing future visa regulations. Additionally, the focus on local hiring could drive initiatives to enhance skill development and training programs within the U.S., ensuring the workforce is equipped to meet the demands of emerging technologies.