In light of growing visa costs and changes, TCS and HCL Tech are reducing their dependence on H-1B visas and increasing their emphasis on local hiring.
For techies who are pursuing the “American dream,” the recent announcement from two significant Indian IT businesses might be a setback. HCL Technologies and Tata Consultancy Services (TCS) are reducing their use of H-1B visas.
According to a recent statement by TCS CEO K. Krithivasan, the business has decided not to recruit any more H-1B employees. He clarified that they already have a sufficient number of US personnel with visas.
He said that TCS’s initial strategy had always included rotating workers on H-1B visas, either returning them after their missions or substituting them with local talent.
Krithivasan went on to say, “We are focusing on strengthening our local staff,” adding that choices on visa renewals will be made as needed.
As a result of the recent increase in the charge of $100,000 for H-1B visas, HCL Technologies is also changing its strategy to address the uncertainties involved.
C. Vijayakumar, the company’s managing director, acknowledged the effects of the reforms but also said that HCL has been attempting for a long time to lessen its reliance on visas.
“To reduce our need on visas, we have been bolstering our worldwide delivery strategy over the years,” he said.
Overtaking big IT firms like Microsoft, Meta, Apple, and Google, TCS, the top user of H-1B visas in the US, employed 98,259 H-1B workers between 2009 and 2025, including 5,505 in 2025 alone. In contrast, as of the first half of fiscal year 2025, HCL Technologies employed around 1,728 H-1B employees.
What is the H-1B visa cost of $100,000?
President Donald Trump issued a decree on September 19, 2025, increasing the yearly cost of H-1B work permits to $100,000. The H-1B program is “one of the most exploited” in the existing immigration system, according to White House staff secretary Will Scharf.
According to him, the purpose of the new tax is to prioritize the local labor and preserve US employment. The government says it wants to make sure the visa program is not utilized to replace American labor, but rather to bring in highly trained professionals.
“This is the quickest method for getting L1 canned.”
Internet users shared their thoughts on the company’s choice. “They will employ people in India for a year, squander their time, and then transport them to the US on L1,” one user said. Trump is also able to alter L1. “Not difficult,” another person said.
One user said, “This is the quickest method to have L1 canned.” A netizen remarked, “Do not fear, businesses will not think twice about taking advantage of even R visas intended for priests and religious workers.” Another said, “He just signed the death sentence for the L-1 visa.”