The recent overhaul of the US H-1B visa policy has sent shockwaves through the global IT industry. Under the new rule, employers must pay a steep fee of $100,000 to the U.S. government for each new H-1B hire.
This change has made companies, especially Indian IT giants, reconsider their long-standing dependence on the H1B visa program.
Tata Consultancy Services (TCS) has already taken a bold step by announcing a complete halt to new H-1B recruitment.
According to its CEO, the company will rely on local US talent while renewing visas only for existing H-1B employees.
Other Indian majors such as Infosys, Wipro and Cognizant (CTS) are expected to follow suit.
Instead of pursuing H-1B petitions, these firms plan to utilize L-1 visas for intra-company transfers and focus more on hiring green card holders and U.S. citizens for new jobs.
This policy shift is likely to create fresh opportunities for international students on Optional Practical Training (OPT).
With fewer H-1B openings, Indian IT firms operating in the U.S.A may increasingly recruit OPT holders for temporary roles.
However, these positions are expected to offer lower pay, as OPT workers are typically treated as trainees.
Once their OPT period expires, many of these graduates may have to return to their home countries, since H-1B sponsorships will no longer be available.
While this move could help companies cut costs, it also signals the end of an era where H-1B visas fueled the growth of Indian IT services in the United States.
The policy is reshaping the industry’s hiring landscape, driving localization and compelling firms to invest more in developing a home-grown US workforce, making the traditional H-1B route largely a thing of the past.