In recent years, Indian IT companies have experienced a significant decline in their utilization of H-1B visas in the US. 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 country.
According to a report in Economic Times (ET), big Indian IT companies, with the exception of Infosys, have seen a sharp decrease in their share of approved H-1B visa applications for initial employment. Between fiscal year 2015 and 2023, the top seven Indian IT companies witnessed a collective decline of 56%, with Tata Consultancy Services leading the pack with a 75% decrease in approved visas.
Several factors have contributed to this downward trend. Firstly, Indian IT giants have shifted their focus towards local hiring in the US, reducing their dependence on visa workers. Companies like Infosys have even implemented successful talent development models from India in the US.
Additionally, the growing adoption of automation and AI tools in the IT industry has streamlined tasks, potentially leading to a reduced overall workforce requirement. The 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 has reported investments of over $1.1 billion in strengthening the STEM talent pipeline within the US, including collaborations with universities and 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-focused talent acquisition strategies in the US market.
