While H-1B visas still account for a significant portion of their U.S. workforce, Indian IT companies have been steadily decreasing their dependence on these work permits over the past six to eight years, according to industry experts. The visa price hike comes as the Indian IT sector also faces worries about potential tariffs on software exports to the U.S.
Illustrating this trend, data from Equirus Securities, a prominent brokerage firm, reveals a stark contrast. In 2016, the top six Indian tech giants—TCS, Infosys, Wipro, HCL Tech, Tech M, and LTIMindtree—secured 8,473 H-1B visa approvals from a total of 43,860 applications. By 2024, this number dropped significantly, with only 7,105 approvals granted from 24,269 applications.
The trend continues into 2025, with these companies receiving just 2,144 H-1B visas from 14,056 applications thus far, signaling a dramatic reduction in new submissions. Equirus Securities further highlights a negative compound annual growth rate (CAGR) between 2016 and 2024, with visa approvals decreasing by 2.2% and total applications by a more substantial 7.1%.
Avinash Vashistha, Chairman and CEO of Tholons, a GCC consulting and IT services firm and former Chairman and CEO of Accenture India, noted that the impending $100,000 annual visa fee will compel both Indian and U.S. tech companies to fundamentally rethink their talent and deployment strategies, aiming to lessen their reliance on H-1B visas.
Sachin Alug, CEO of Atlanta-based staffing solutions firm NLB Services, added that rising costs and increased complexities in sponsoring international employees had already led many companies to shift focus towards strengthening their Global Capability Centres (GCCs) and Dedicated Delivery Centres (DDCs).
Atul Gupta, Partner for Labour and Employment at Trilegal, a full-service law firm, highlighted the broad implications of the visa fee increase, stating that it carries significant legal, economic, and human consequences, especially given India’s crucial role in global skilled talent mobility.
Mr. Gupta emphasized that the substantial fee hike would profoundly affect Indian technology and service providers, as well as their professionals. Both Indian firms and their U.S. clients will be forced to meticulously evaluate which roles justify such a significant investment. He further predicted that many positions might migrate to neighboring countries with similar time zones, such as Canada or Mexico, or even return to India.
This scenario, however, presents a unique opportunity for Indian tech companies to enhance their value proposition by delivering more core services directly from India, thereby bolstering the nation’s GCC capabilities.
Mr. Vashistha believes this development will fundamentally reshape corporate strategies for most tech providers, including U.S. IT firms that have traditionally relied heavily on H-1B visas, prompting them to expand their Global Capability Centres and R&D facilities within India.
Vasishta Haavanur, Founder and CEO of Prawega Tech Solutions, projected a continued reduction in H-1B visa applications. He warned that the $100,000 visa fee regime would inevitably squeeze the operating margins of Indian tech firms, placing them under considerable profit pressure.
Mr. Haavanur suggested that Indian companies could mitigate this by increasing local hiring. While smaller firms would face intense margin pressure from the visa fees, he also highlighted a significant opportunity for them to pursue more remote offshore work in specialized, high-skill areas like Artificial Intelligence, DevOps, and Cybersecurity.
In a proactive move, several mid-cap Indian tech companies, including Mphasis, Hexaware, Persistent Systems, and Cyient, have already reported reducing their H-1B visa dependence in recent years through increased local hiring in the U.S. and the adoption of AI-driven solutions.
This visa fee increase comes at a sensitive time, as the Indian IT sector is already grappling with concerns over potential tariffs on its software exports to the U.S.
B.S. Murthy, CEO of Leadership Capital, a CXO advisory firm, issued a stark warning: ‘Tariffs on software exports are the only remaining threat. Tech firms are already apprehensive, and even a 10% or 25% tariff would spell the death knell for India’s existing tech ecosystem.’