4 Major Factors Contributing to the Decrease in H-1B Visa Utilization by Indian IT Companies

In recent years, Indian IT companies have witnessed a significant decline in the utilization of H-1B visas in the United States. This trend marks a departure from the past when these companies heavily relied on these visas to fill their talent gaps and expand their operations in the US market.

According to a report by the Economic Times (ET), major Indian IT firms, with the exception of Infosys, have experienced a sharp decrease in their share of H-1B visas by over 40%. Data from the National Foundation for American Policy (NFAP) reveals that between fiscal year 2015 and 2023, the number of approved H-1B visa applications for initial employment for the top seven Indian IT companies plummeted by 56%.

Several factors have contributed to this downward trend. Indian IT giants have shifted their focus towards local hiring in the US, reducing their dependence on visa workers. Companies like Infosys have implemented successful talent development models from India in the US, further diminishing the need for H-1B visas.

Additionally, the increasing adoption of automation and artificial intelligence tools in the IT industry has streamlined tasks, potentially reducing the overall workforce requirement. Rising living costs in the US have also made it a less attractive destination for IT professionals seeking to emigrate.

To bridge the talent gap created by the decline in H-1B visas, Indian IT companies are investing in alternative strategies such as STEM pipeline development. Industry body Nasscom reports that the Indian IT industry has invested over $1.1 billion in strengthening the STEM talent pipeline within the US, collaborating with universities and offering upskilling programs for existing employees.

Overall, the decline in H-1B visa utilization by Indian IT companies reflects a shift towards more sustainable and locally-driven talent acquisition strategies in the US market.