H-1B changes in US: What Indian IT firms’ exposure looks like as visa rules change

Even as the US moves towards a tighter, wage-weighted H-1B visa regime, India’s top IT services companies appear far less exposed to visa policy changes than in previous cycles, with most firms now relying largely on localised US workforces.

Disclosures made by companies during Q2 earnings calls and interviews with CNBC-TV18 indicate that H-1B usage has dropped sharply, both in absolute numbers and as a share of the US employee base, reflecting a long-term shift towards local hiring, near-shore delivery and offshore execution.

Why this matters now

The focus on visa dependence comes amid renewed scrutiny of the H-1B programme in the US, with policymakers flagging that a majority of cap-subject visas in recent years went to lower wage levels.

Historically, filings were dominated by lower wage bands. Analysis of FY2019–FY2024 data shows that:

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  Wage Level I (entry-level) accounted for 35–40% of petitions

  
  


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  Wage Level II made up 35%

  
  


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  Wage Levels III and IV together accounted for less than 30%

  
  

Under the revised US system — applicable from the FY2027 cap season — H-1B applications will no longer carry equal odds. Instead, higher wage levels will receive greater weight in the selection pool, significantly improving the chances of higher-paid, higher-skilled

roles.

This backdrop has heightened investor attention on how exposed Indian IT firms remain to potential visa tightening.

What Indian IT companies are saying

For Indian IT companies, however, the impact is expected to be limited, given years of deliberate effort to cut visa reliance — a trend highlighted consistently in Q2 earnings calls and CNBC-TV18 interviews.

• TCS said only around 500 associates travelled to the US on H-1B visas this financial year, a sharp decline from historical levels, as the company significantly localised its US workforce.


• Infosys has stated that employees requiring H-1B sponsorship form a minority, with the majority of its US staff not needing immigration support.


• Wipro said over 80% of its US workforce is localised, having used only about 250 H-1B visas over the last five years.


• HCLTech told investors it has reduced H-1B usage to just a few hundred employees per year.


• Tech Mahindra said less than 1% of its global workforce is on H-1B visas, with overall US visa dependence below 30%.


• LTIMindtree sent 250–300 employees on H-1B visas in FY25, though about 50% of its US workforce remains on H-1B, alongside plans to strengthen near-shore and offshore delivery centres.


• Persistent Systems said it has never been dependent on H-1B visas and does not expect immigration changes to materially impact its business.


• Mphasis has also flagged limited dependence on the programme.

The falling reliance on H-1B visas has not been a reaction to any single policy change, but the outcome of nearly a decade of restructuring by Indian IT firms following earlier US immigration curbs.

Local hiring in the US, expanded delivery centres in Mexico, Canada and Latin America, and increased offshore execution from India have all reduced visa sensitivity.

This mirrors industry commentary in September, when several IT firms — from Persistent Systems to Sasken Technologies — said a proposed $100,000 H-1B visa fee would not have a material impact on their business, underscoring the sector’s reduced dependence on the programme.