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Mphasis, a prominent IT services company, has reassured the market and stakeholders that it is fully staffed to meet all existing client requirements and will continue to operate in a business-as-usual mode despite the recent increase in H1B visa fees. The firm also clarified that the new U.S. H1B visa fee hike does not have a significant impact on its business operations or financial outlook.
Key Highlights of the Mphasis Update
Mphasis is fully equipped with personnel across all projects and client engagements, ensuring uninterrupted service delivery.
The company witnessed approximately 130 new H1B visa filings in 2025, with 78 approvals so far, a relatively low volume compared to peers.
The recent one-time increase in the H1B visa fee to $100,000 per new petition, implemented under U.S. government mandate, is not expected to materially impact Mphasis’s cost structure or operational efficiency.
Mphasis has steadily reduced visa dependency through increased local hiring within the U.S., strategic acquisitions, and partnerships, mitigating the risks related to visa cost changes.
The company continues its focus on AI-led business propositions and technology transformation, which contribute to system resiliency and competitive edge.
Senior leadership emphasizes flexibility in managing any arising challenges, ensuring client commitments remain uncompromised.
Understanding The Visa Fee Impact And Mphasis’s Preparedness
The U.S. administration’s decision to increase the H1B visa fee substantially raised concerns across the Indian IT sector, given the centrality of H1B visas for onshore staffing. However, Mphasis’s relatively low filing volumes for H1B visas and deliberate shift toward increased U.S. local hiring place it in a strong position to absorb such external changes.
By balancing a diversified staffing strategy including local workforce expansion and acquisitions, Mphasis limits visa-dependent exposure, safeguarding operational continuity and cost management.
Operational Stability And Client Commitment
Mphasis remains fully staffed with the necessary talent pool to service all current contracts without disruption.
Business functions across delivery, technology, and customer engagement continue seamlessly, reflecting effective workforce management.
The company’s AI and automation-centric solutions further reinforce operational stability by improving productivity and reducing reliance on manual processes.
Mphasis will maintain open communication with clients and partners to ensure transparency and reliability amid external regulatory changes.
Financial Outlook And Market Confidence
Mphasis’s leadership does not foresee significant financial impacts deriving from the H1B fee hike owing to its careful workforce planning. Market reaction has been steady with investors appreciating the company’s proactive stance and adaptive strategies.
The company continues to focus on growth areas such as AI-powered digital transformation, cloud computing, and next-gen IT services, which form the backbone of its revenue growth and profitability.
Future Strategic Directions
Mphasis plans to further drive local hiring and ecosystem partnerships in key markets to enhance delivery flexibility.
Investments in AI-driven service platforms and automation tools will continue to reduce dependency on visa-driven talent movement.
The company is accelerating digital innovation to meet evolving client demands and strengthen global competitiveness.
Continuous workforce skill development and employee engagement remain priorities to sustain productivity and service quality.
Conclusion
Mphasis’s clear messaging around full staffing and negligible operational impact from the H1B visa fee increase underlines its resilient business model and thoughtful organizational planning. By balancing a mix of onshore talent hiring, technology investments, and strategic acquisitions, Mphasis is well-positioned to navigate regulatory shifts while sustaining growth in a competitive IT services landscape.
Sources: Mphasis official statements, Business Standard, NDTV Profit, CNBC-TV18, Economic Times
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