H-1B Visa Changes: A Threat to Indian IT Giants

Moody’s Warns of Risks for TCS, Infosys, and Hexaware

A recent Moody’s report reveals that Indian IT giants like TCS, Infosys, and Hexaware Technologies face risks due to alterations in H-1B visa policies under the Trump administration. These companies depend on foreign skilled professionals for extended US assignments, making them vulnerable to immigration policy changes and increased costs.

Reliance on H-1B Visa Holders

• Indians obtained about 75% of H-1B visas granted in 2023
• TCS and Infosys maintain higher profit margins to manage increased operational expenses
• Indian-origin tech firms received 20% of all H-1B visas issued by the US
• Infosys and TCS were the top recipients among Indian companies

Effects of Tighter US Immigration Policies

Tighter US immigration policies might reduce the labor pool and pose challenges for companies operating in the US that depend on foreign workers. To minimize disruptions, TCS, Infosys, and Hexaware Technologies have gradually increased onshore hiring in the US.

H-1B Visa Distribution

• Indian-origin organizations received 24,766 visas out of 130,000 H-1B visas allocated
• Infosys topped the list with 8,140 visa recipients, followed by TCS with 5,274 visas and HCL America with 2,953 visas

The H1B visa program allows US organizations to employ foreign professionals temporarily in specialized positions. Indian companies, particularly in the technology sector, have consistently been major beneficiaries of these visas.