Indian IT Firms Reduce H-1B Visa Dependency Amid US Policy Changes 2025

Industry veteran Mohandas Pai, who was CFO of Infosys, disclosed on Thursday that the reliance of Indian IT companies on H-1B visas has greatly decreased in the past several years, and so they are not as susceptible to future changes in US policies. His words are issued against the backdrop of brutal criticism of the H-1B program by Trump administration officials who labeled the program as a scam.

US Officials Criticize H-1B Program as "Scam"

This week, Commerce Secretary Howard Lutnick and Florida Governor Ron DeSantis used scathing statements about the H-1B visa system. On social media, Lutnick wrote that the modern H-1B system of visas is an illusion that allows foreigners to occupy the American labor market. It should be the business of all the great American businesses to hire American workers.

This criticism became even worse when Lutnick, during a Fox News interview, said, I am part of the change in the H1B programme. We will alter that programme, which is awful. These words are an indication of possible significant changes to the visa system in the Trump administration.

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Data Reveals Shift in H-1B Applications

Pai then refuted the criticism by citing public statistics, which indicated that there was a fundamental change in H-1B visa applications. The reliance of Indian service companies on H-1B has reduced. Please review public data, in the past year, the top 20 of the H-1B filing? H-1B is a filing that is being done by many large American tech companies, he told PTI.

Top H-1B Visa Approvals for Fiscal Year 2025

According to USCIS data as of June 30, 2025, the top H-1B visa recipients show a clear shift toward American companies:

Indian IT Firms' Strategic Transformation

The transformation in Indian IT companies' hiring strategies reflects a deliberate shift toward local employment. Pai noted that "Indian service companies, most of them have more than 50 per cent of the staff they work with in America who are locals".

Key Changes in Indian IT Operations

In the last decade, the Indian IT firms have experienced a paradigm shift in the way they operate in the United States market. This change can be viewed as a strategic reaction to the changing immigration policies, the demands of clients, and the market in favor of local experience and cultural identity.

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H-1B Visa Program Structure and Statistics

The H-1B program has strict numerical limits that are established by Congress. The yearly limit is 65,000 visas, and 20,000 more are reserved for professionals who have master's degrees or higher degrees at US institutions. There are also shifting dynamics in the pattern of renewal. There would be 240,000 renewed, I believe, last year. It is renewed every three years. Incremental H-1Bs are thus being provided to American companies and not Indian service companies, Pai clarified.

Historical Context of Indian H-1B Participation

H-1B visa allotments have always been dominated by Indians, who are allotted around 72 percent of the almost 400,000 visa allocations between October 2022 and September 2023. Indian IT giants such as TCS, Infosys, HCL, and Wipro were given the go-ahead to get approximately 20,000 employees at this time.

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Industry Response and Future Outlook

Most of the Indian IT firms, such as TCS, Infosys, and Wipro, refused to comment on the recent events. Even the association of the industry, NASSCOM, did not speak after the US officials harshly criticized the industry. The alterations to the H-1B program and the Green Card procedure that the Trump administration intends to implement could alter the immigration regulations of the skilled workforce. Nevertheless, according to the analysis provided by Pai, Indian IT companies are already in a desirable position to manage this kind of change.

Global Competition for Tech Talent

The conflict arises because the technology firms across the globe are struggling for well-trained experts, especially in artificial intelligence and program creation. Firms such as Microsoft, Google, and Nvidia have enhanced their involvement in Indian technological talents, as they acknowledge the involvement of the country in world innovation.

Alternative Destinations for Indian Professionals

As US immigration policies tighten, Indian IT professionals may increasingly consider other destinations. Canada and the UK are perceived as having more welcoming immigration policies for skilled workers.

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Market Implications and Strategic Adaptations

The reduced dependency on H-1B visas reflects broader strategic adaptations by Indian IT companies. These firms have expanded their global operations, increased domestic capabilities, and diversified their talent acquisition strategies beyond US-dependent models.

Conclusion

Indian IT firms' H-1B visa reliance has decreased substantially as these companies have adapted their hiring strategies to employ more local workers in the US market. While US officials criticize the visa program, data shows American tech giants now dominate applications, with Indian companies representing a smaller portion of total requests. This strategic transformation positions Indian IT firms to better weather potential policy changes under the Trump administration's planned reforms to the H-1B system. Official H-1B visa statistics and employer data are available through the USCIS H-1B Employer Data Hub, which provides comprehensive data from fiscal year 2009 through 2024 on employers who have submitted petitions to employ H-1B nonimmigrant workers. To know more about H- 1B visa visit TerraTern now!