India's IT industry body Nasscom stated that Indian technology firms have significantly reduced their reliance on H-1B visas over the past five years, with visa holders making up under 1% of top firms' workforces. Consequently, proposed U.S. visa fee increases will have only a marginal impact on operations.
NEW DELHI — India’s apex technology industry body, the National Association of Software and Service Companies (Nasscom), stated that Indian IT services companies have substantially reduced their reliance on non-immigrant work visas over the past five years, mitigating the operational impact of proposed U.S. visa tariff adjustments. Addressing policy discussions surrounding a proposed H-1B visa fee increase, Nasscom emphasized that the specialized worker program has historically served an essential role in bridging critical, short-term technology skill gaps across the United States while Indian service providers steadily expanded direct domestic employment within American borders.
Five-Year Shift Toward Domestic American Hiring
According to operational data compiled by the industry association, Indian technology services firms operating in the North American corridor have systematically reconfigured their talent delivery models. Over the past five years, the total volume of H-1B employees of Indian technology companies has decreased considerably as enterprises invested heavily in domestic American campuses, local recruitment, and STEM education initiatives.
Industry statistics indicate that annual visa issuances to leading Indian and India-centric technology providers dropped from 14,792 in 2015 to approximately 10,162 in recent regulatory cycles. Today, specialized visa workers account for less than 1 percent of the total global workforce across the top 10 Indian IT services firms. Consequently, industry analysts project that proposed fiscal adjustments to visa petitions will exert only a marginal structural impact on the balance sheets and delivery capabilities of major Indian technology exporters.
Addressing Critical Short-Term Skill Gaps in the U.S.
In its policy evaluation, Nasscom reiterated that skilled cross-border mobility remains a core engine of bilateral technological advancement. The trade body highlighted that the high-skilled worker visa route provides American enterprises with vital access to specialized engineering and software architecture capabilities during periods of acute labor shortages in emerging technology domains such as artificial intelligence, cloud architecture, and cybersecurity.
Nasscom stressed that foreign professionals deployed under the framework earn compensation on par with domestic peers, adhering strictly to prevailing wage regulations established by the U.S. Department of Labor. The association noted that maintaining a stable, predictable framework for high-skilled talent mobility is indispensable for preserving American innovation leadership and fostering long-term economic competitiveness.
Corporate Transformation and Localized Delivery Models
Over the last decade, leading Indian information technology conglomerates—including Tata Consultancy Services, Infosys, Wipro, and HCLTech—have diversified their delivery footprint by inaugurating innovation hubs and development centers across U.S. states including Texas, North Carolina, Indiana, and Ohio. Indian IT service providers currently channel over $1 billion annually into domestic upskilling, university partnerships, and localized recruitment campaigns across the United States.
This localized operational pivot has insulated service providers from regulatory fluctuations in Washington. By building out local technical capacity and enhancing offshore digital delivery frameworks, Indian IT firms have decoupled revenue generation from high-volume visa petition filings, transforming into integrated global digital transformation partners.
Official Sources Section
The assessments and operational metrics cited in this report originate from official statements, policy research briefings, and industry memorandums published by Nasscom. Additional context regarding visa issuance trends and workforce statistics is drawn from regulatory filings submitted to stock exchanges and public compliance reports published by the United States Citizenship and Immigration Services (USCIS).
Industry and Leadership Statements
Highlighting the long-term contribution of high-skilled professionals, industry representatives underscored the mutually beneficial architecture of international talent mobility.
According to statements released by Nasscom:
"The H-1B programme has long served an important purpose in addressing short-term skill gaps in the U.S., supporting innovation, and contributing to economic growth. High-skilled worker mobility is a vital non-immigrant pathway that bridges critical talent shortages, with personnel receiving compensation strictly at par with local hires."
The industry association added that:
"Over the years, Indian and India-centric companies operating in the U.S. have significantly reduced their dependencies on H-1B visas and steadily increased their local hiring. With visa holders representing less than one percent of the aggregate employee base among top providers, the sector anticipates only a marginal impact from proposed tariff revisions."
Why It Matters
The evolving stance of India's technology sector reflects a mature global delivery ecosystem that relies increasingly on local American talent and cloud-enabled offshore execution rather than temporary cross-border mobility. For corporate clients, this transition ensures enterprise project continuity without severe price inflation resulting from a H-1B visa fee increase. For policymakers and investors, it demonstrates that bilateral tech collaboration has shifted from labor arbitrage toward high-value co-innovation, localized capacity building, and distributed global engineering networks.
Key Facts at a Glance
Workforce Share: Specialized visa workers comprise less than 1% of the total employee base of the top 10 Indian IT service providers.
Declining Filings: Annual visas issued to top Indian and India-centric firms dropped from 14,792 in 2015 to 10,162 in 2024.
Local Investment: The Indian IT industry allocates more than $1 billion annually toward local workforce upskilling and direct hiring in the United States.
Program Role: Nasscom maintains that skilled temporary mobility remains critical for filling immediate U.S. technical talent shortfalls in advanced digital sectors.
Frequently Asked Questions
How does Nasscom view the role of the H-1B visa program in the United States?
Nasscom views the program as an essential mechanism that bridges critical short-term technology skill deficits, fuels innovation, and supports American economic competitiveness while maintaining wage parity with local workers.
Why will the proposed H-1B visa fee increase have a marginal impact on Indian IT firms?
Indian technology companies have significantly decreased their reliance on temporary work visas over the past five years, expanding local American hiring and offshore digital delivery capabilities so that visa holders now represent less than 1 percent of their total workforce.
How much do Indian IT companies invest in local U.S. talent development?
Indian IT firms invest over $1 billion each year into local U.S. recruitment, university collaborations, and specialized workforce upskilling programs.
Has the total number of H-1B approvals for Indian tech firms declined over time?
Yes, official immigration statistics reveal that visa issuances to leading Indian and India-centric technology companies dropped from 14,792 in 2015 to 10,162 in 2024.
Source: Nasscom Official Portal, U.S. Citizenship and Immigration Services, Ministry of Electronics and Information Technology, U.S. Department of Labor.
