- Indian IT sector earns over 50% of revenue from the US market, which is worth around $138 billion in India (2024-25).
- The Indian IT industry was expecting to cross $224 billion in export revenue by this year (2025).
- H-1B visa fee hike could reduce profits by 7-15% or more for big Indian IT firms.
- Indian IT companies are increasing number of local US hiring and investing $1 billion in upskilling US talent.
- India’s IT services market is projected to grow at a CAGR of 13.4% and reach $166 billion by 2030.
H-1B Visa Policy has been changed and it’s not a very good news for Indians. In the recent changes in the H-1B visa policy, where the US government increased the visa application fee to $100,000. It means every Indian needs to pay this amount to get this visa.
This visa is very important for Indian IT professionals because it allows Indians to work in the US IT Companies. Earlier, the visa fees were much lower, around $7,500 to $10,000, but now the sharp hike makes it very expensive for companies to send their skilled employees to the US.
Indian IT firms like TCS, Infosys, Wipro, and HCL face a major financial impact since they get a large part of their revenue from the US market. This new visa cost can reduce the profits by 7% to 15% or more and depending on how many employees they send to the US.
This means companies will have to rethink their strategies because sending workers to the US will not be as cost-effective as before. Now many IT firms will think to hire more locally in the US or do more work remotely from India to avoid these high visa fees. To hire from the USA is not cost effective. In the US usually costs more, and managing remote teams requires different work methods.
Some Indian IT companies had already reduced their dependence on H-1B visas in recent years. They are hiring more local employees and investing in nearshore delivery centers closer to the US. This preparation helps them face the new fee changes better than before.
The policy can create anxiety for some Indian tech professionals who all want to work in the US. Now their future is uncertain for the US it companies.
The overall effect is that Indian IT firm’s will likely focus on remote work and local hiring in the US to keep their business stable. This change might slow down the number of Indians moving to the US for work on H-1B visas.
In conclusion, the increase in H-1B visa fees is forcing Indian IT companies to change how they operate, shifting from sending many workers onsite to the US towards more remote work and local hiring. Though this presents challenges, it also pushes the industry to innovate and find new ways to grow in a changing global environment.