IT Sector Reels from H-1B Shockwave: Companies Brace for Maximum Pain

Silicon Valley's talent pipeline just hit a seismic fault line.

The H-1B visa overhaul sends shockwaves through tech boardrooms—hiring freezes spread faster than legacy code vulnerabilities. Companies that built entire divisions on international talent now face operational paralysis.

Recruitment departments scramble for contingency plans while project timelines stretch into oblivion. The very foundation of America's tech dominance shows cracks wider than a rushed blockchain fork.

Wall Street analysts nod approvingly at the 'cost optimization' while quietly shorting tech stocks—because nothing fuels innovation like starving companies of their lifeblood talent.

Significant impact - Infosys, TCS and Wipro

According to Kotak, Infosys has about 35 per cent reliance on H-1B visa in the US and TCS has 28 per cent. The brokerage expects about 19 per cent for HCL Tech, 30 per cent for Wipro and about 28 per cent for Tech Mahindra.

Among the mid-tier companies, Hexaware has about 40 per cent reliance, 20 per cent for Persistent, 35 per cent for Coforge and 30 per cent for Mphasis.

H-1B reliance on other mid-tier companies like LTI Mindtree will also be more pronounced, noted HDFC Securities.

Meanwhile, Motilal Oswal said, big tech firms like Google, Amazon, Microsoft and Meta have a larger share of fresh H-1B applications than Indian ITs.

Strategic shifts: nearshoring and local hiring

Nuvama Institutional Equities’ report indicated that companies are likely to reduce H-1B visa impact by nearshoring and hiring local talent. This approach aims to mitigate the increased costs and ensure compliance with US labour regulations.

The brokerage also noted that over the past eight years, the Indian ITs have significantly reduced their dependence on H-1B visas.

While some near-term financial and operational pressures are unavoidable, Nuvama said, higher offshoring is expected to cushion much of the burden created by the steep visa fee in the long-term.

Published on September 23, 2025

• Infosys Ltd
• Tata Consultancy Services Ltd
• Wipro Ltd
• Tech Mahindra Ltd
• LTIMindtree Ltd