Indian IT companies have markedly decreased their H-1B visa utilization in the US, focusing instead on local hiring, adopting automation technologies, and implementing strategies to bridge talent gaps without depending on visas. These shifts reflect a strategic adaptation to changing market conditions and a commitment to building a robust domestic workforce.
In recent years, Indian IT companies in the US have significantly reduced their reliance on H-1B visas. The era when these companies heavily depended on H-1B visas, with rising costs impacting their margins, is now a thing of the past.
Before 2015, several major Indian IT firms were among the top 10 H-1B visa beneficiaries. However, their numbers have dramatically decreased since then. According to a report by the Economic Times (ET), except for Infosys, large Indian IT companies have seen their share drop by over 40%. Data from the National Foundation for American Policy (NFAP), a US think tank, shows that approved H-1B visa applications for initial employment among the top seven Indian IT firms fell by 56% between fiscal years 2015 and 2023, declining from 15,166 in FY2015 to 6,732 in FY2023.
Here are the specific declines for each company:
Tata Consultancy Services: 75% decrease
Infosys: 21% decrease
Wipro: 69% decrease
HCL America: 46% decrease
LTIMindtree: 32% decrease
Tech Mahindra: 62% decrease
Hexaware Technologies: 56% decrease
Local Hiring Focus: Indian IT giants have ramped up their recruitment efforts within the US. A study by Everest Group reveals that companies like Infosys have successfully implemented their talent development models from India in the US, reducing their dependence on visa workers.
Automation Wave: The increasing adoption of automation and artificial intelligence (AI) tools in the IT industry has streamlined tasks, potentially leading to a reduced overall workforce requirement.
Shifting US Landscape: Rising living costs in the US, as reported by various sources, have made it a less attractive destination for IT professionals seeking to emigrate.
Filling the Talent Gap: With fewer H-1B visas available, Indian IT companies are adopting alternative strategies to bridge the talent gap. This includes significant investment in the STEM talent pipeline. According to industry body Nasscom, the Indian IT industry has invested over $1.1 billion in strengthening the STEM talent pipeline within the US. This includes collaborations with over 130 universities to develop a skilled domestic workforce and upskilling programs for existing employees.
Additionally, Indian IT companies are leveraging the existing talent pool within the sizable Indian diaspora residing in the US, providing a readily available resource of skilled professionals.
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