TCS Cuts Back on H-1B Visas to Support US Focus on Local High-Skilled Workers
Tata Consultancy Services (TCS) is focusing on increasing local recruitment in the US, phasing out its reliance on H-1B visas. This initiative aligns with the US government’s evolving visa policies under the current administration.
US H-1B Visa Changes
The US administration recently announced a $100,000 fee on new H-1B visa applications, effective from February 2026. These reforms include a shift from the lottery system to a preference for higher skilled and better-paid workers.
| Change | Details |
|---|---|
| New H-1B Visa Fee | $100,000 (applicable from February 2026) |
| Visa Selection | Preference for higher skilled, better-paid workers |
| Effective Duration | Initial 12 months |
TCS’s Strategic Shift
CEO K Krithivasan stated that TCS is actively minimizing its dependence on onsite H-1B visas. This approach is part of a broader workforce transformation aimed at enhancing local recruitment. Last financial year, TCS used approximately 500 H-1B visas, marking a deliberate reduction.
- Focus on local recruitment in the US
- Reduction in reliance on H-1B visas
- Approximately 500 H-1B visas used last year
Krithivasan emphasized that this reduction is not cost-driven or due to automation, but to ensure a future-ready workforce. He also clarified that the previous figure of 5,505 visas included renewals and amendments.
The Importance of TCS’s Strategy
TCS’s approach comes as the US is poised to introduce higher costs and greater restrictions on H-1B visas. By advancing local hiring, TCS is minimizing potential business disruptions. This strategy positions TCS to adapt seamlessly to policy changes that favor local high-skilled, high-paid workers.
Furthermore, TCS’s effort to diversify its staffing model diminishes exposure to risks tied to new visa criteria and costs. This model might set a precedent for other IT firms adapting to the evolving regulatory landscape.
Implications for the IT Sector
The policy changes pose challenges for Indian IT companies heavily reliant on the H-1B program. TCS’s shift towards cultivating local talent is a strategic move that may influence other firms adjusting to these regulatory updates.
