H-1B visa policy changes under US President Donald Trump’s government makes major Indian IT firms susceptible to immigration policy changes and higher costs, says Moody’s in its latest report. Indians secured approximately 75% of H-1B visas granted in 2023, maintaining the country’s position as a primary source of IT workforce globally.
According to a Moody’s analysis, major technology firms like Infosys, Tata Consultancy Services (TCS) and Hexaware Technologies depend on these qualified professionals for extended US-based assignments, making them vulnerable to shifts in immigration regulations and escalating expenses.
The analysis indicates that TCS and Infosys are better equipped to handle increased operational costs due to their superior profit margins in the sector.
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“While not directly subject to tariffs, business service providers are vulnerable to changes in US immigration policy. Stricter US immigration rules will shrink the labor pool and pose risks for companies operating in the US that are reliant on foreign workers. To better serve their customers with minimal disruptions, companies such as TCS, Infosys and Hexaware Technologies, had gradually increased onshore hiring in the US,” Moody’s was quoted as saying by ET.
Technology firms of Indian origin secured approximately 20% of all H-1B visas granted by the United States, with Infosys and TCS emerging as the primary recipients, according to an analysis of US immigration authority data released earlier this year.
The US Citizenship and Immigration Services data revealed that during April-September 2024, Indian-origin organisations received roughly 24,766 visas out of the total 130,000 H-1B visas allocated to various employers.
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Among these organisations, Infosys led with 8,140 visa recipients, whilst TCS secured 5,274 visas, and HCL America obtained 2,953 visas.
The H1B visa scheme enables organisations in the United States to employ overseas professionals temporarily in specialised roles. Indian organisations, particularly in the technology industry, have consistently been major recipients of these visas.
