IT majors may face op disruptions, rising costs as H-1B overhaul looms

With Donald Trump poised to return to power in 2025 after winning the election, his administration is expected to implement stricter H-1B visa policies, including higher wage thresholds, reduced visa caps, and a focus on prioritizing US-educated or higher-skilled applicants, according to industry experts.

- PEERZADA ABRAR & AJINKYA KAWALE

The H-1B visa programme, which allows US companies to hire skilled foreign workers in specialized fields, has long been a subject of controversy.

Experts predict that Indian information technology (IT) giants like Tata Consultancy Services (TCS), Infosys, and Wipro may face operational disruptions and increased costs, pushing them to scale up local hiring in the US, invest in automation, and explore alternative markets.

"These changes could severely limit opportunities for Indian IT professionals in the US and increase competition for fewer visas," said Jidesh Kumar, managing partner at King Stubb & Kasiva. "These shifts could ripple through India's IT export economy, slowing growth and requiring diversification to maintain global competitiveness."

India's $250 billion technology (tech) sector, which employs around 5.4 million people, could feel the impact. Tech services account for about 7.5 percent of the country's $3 trillion gross domestic product. The industry is targeting $350 billion in revenue by 2030.

According to US Citizenship and Immigration Services data, Indian nationals were granted 72.3 percent of all H-1B visas issued in 2023, underscoring the programme's significance for South Asian workers. In total, 755,020 people were admitted to the US on H-1B status last year, according to the Office of Homeland Security Statistics.