Tata Consultancy Services ( TCS) is doubling down on reducing its dependence on H-1B visas and pushing for more local hiring in the the US—just as the Trump administration introduces a steep $100,000 fee on new H-1B visa petitions and signals broader changes to visa rules.
Talking to ET, CEO K Krithivasan reiterated that tighter visa enforcement and anti-outsourcing rhetoric have not disrupted TCS yet. “It has not caused major disruption for TCS yet,” he said, while pointing out that the company has “deliberately cut reliance on onsite visas” and is scaling up local recruitment. So far this financial year, TCS has used only about 500 H-1B visas.
Also Read| After $100,000 H-1B visa fee, Trump pushes new restrictions aimed at protecting American jobs
Krithivasan also clarified that last year’s reported figure of 5,505 H-1B visas includes renewals and amendments, not just fresh applications. “Historically, if you look at fresh applications, the numbers have been coming down,” he said. “We are more importantly looking at a larger workforce transformation. We believe that gives us a greater opportunity to hire more locally.”
He further asserted that recent headcount reduction at TCS was not just about cost cutting or automation. “Whatever reduction we announced is not because we wanted to cut costs, nor because AI is making these jobs redundant,” he said. “We said our workforce has to be future-ready.”
US H-1B Overhaul: What’s Changing
The visa landscape itself is coming under heavy revision. The US government plans to take effect a $100,000 one-time fee on new H-1B visa petitions, effective February 2026. This move is part of broader changes the administration is considering, including new rules on visa selection and wage thresholds.
The new fee will apply to fresh visa applications from outside the US, not to renewals or existing holders, and would be in place for an initial 12 months. Under the proposed reforms, visa allocation may shift from a lottery system to one favouring higher skilled, higher paid workers when demand exceeds the H-1B cap.
Commerce Secretary Howard Lutnick has signaled that “a significant number of changes” will be introduced before 2026, as the administration aims to remake how H-1B visas are awarded.
Also Read| High-skilled visas have problems. Trump's $100,000 fee won't fix them.
Why TCS’s Position Matters
TCS’s approach to reducing its reliance on H-1B visas gains significance at a time when the US government is introducing new restrictions and higher costs for companies sending skilled workers. The proposed $100,000 fee for new H-1B visa petitions could sharply increase the cost of deploying talent to the US. By moving early to build a more locally based workforce, TCS is better placed to absorb these policy shifts without major business disruption.
The company’s focus on workforce transformation and local recruitment aligns with the direction of the proposed visa reforms. The US administration has signalled that future H-1B allocations may favour highly skilled and better-paid workers over random lottery selections. TCS’s emphasis on hiring talent within the US market fits into this changing landscape, allowing it to maintain service continuity while meeting client demand.
At the same time, the evolving visa framework brings uncertainty for global IT firms. The proposed fees and selection criteria could face further legal and procedural reviews, creating ambiguity around costs and timelines for companies dependent on temporary work visas. TCS’s diversified staffing model and continued push for local hiring reduce its exposure to these risks.
Analysts say the policy changes could have a ripple effect across the broader Indian IT industry, which has long depended on the H-1B programme to deploy skilled engineers to client sites in the US. TCS’s strategy of developing local talent pools and limiting new visa usage may become a model for other firms as they adjust to new regulatory and economic conditions.
Talking to ET, CEO K Krithivasan reiterated that tighter visa enforcement and anti-outsourcing rhetoric have not disrupted TCS yet. “It has not caused major disruption for TCS yet,” he said, while pointing out that the company has “deliberately cut reliance on onsite visas” and is scaling up local recruitment. So far this financial year, TCS has used only about 500 H-1B visas.
Also Read| After $100,000 H-1B visa fee, Trump pushes new restrictions aimed at protecting American jobs
Krithivasan also clarified that last year’s reported figure of 5,505 H-1B visas includes renewals and amendments, not just fresh applications. “Historically, if you look at fresh applications, the numbers have been coming down,” he said. “We are more importantly looking at a larger workforce transformation. We believe that gives us a greater opportunity to hire more locally.”
He further asserted that recent headcount reduction at TCS was not just about cost cutting or automation. “Whatever reduction we announced is not because we wanted to cut costs, nor because AI is making these jobs redundant,” he said. “We said our workforce has to be future-ready.”
US H-1B Overhaul: What’s Changing
The visa landscape itself is coming under heavy revision. The US government plans to take effect a $100,000 one-time fee on new H-1B visa petitions, effective February 2026. This move is part of broader changes the administration is considering, including new rules on visa selection and wage thresholds.
The new fee will apply to fresh visa applications from outside the US, not to renewals or existing holders, and would be in place for an initial 12 months. Under the proposed reforms, visa allocation may shift from a lottery system to one favouring higher skilled, higher paid workers when demand exceeds the H-1B cap.
Commerce Secretary Howard Lutnick has signaled that “a significant number of changes” will be introduced before 2026, as the administration aims to remake how H-1B visas are awarded.
Also Read| High-skilled visas have problems. Trump's $100,000 fee won't fix them.
Why TCS’s Position Matters
TCS’s approach to reducing its reliance on H-1B visas gains significance at a time when the US government is introducing new restrictions and higher costs for companies sending skilled workers. The proposed $100,000 fee for new H-1B visa petitions could sharply increase the cost of deploying talent to the US. By moving early to build a more locally based workforce, TCS is better placed to absorb these policy shifts without major business disruption.
The company’s focus on workforce transformation and local recruitment aligns with the direction of the proposed visa reforms. The US administration has signalled that future H-1B allocations may favour highly skilled and better-paid workers over random lottery selections. TCS’s emphasis on hiring talent within the US market fits into this changing landscape, allowing it to maintain service continuity while meeting client demand.
At the same time, the evolving visa framework brings uncertainty for global IT firms. The proposed fees and selection criteria could face further legal and procedural reviews, creating ambiguity around costs and timelines for companies dependent on temporary work visas. TCS’s diversified staffing model and continued push for local hiring reduce its exposure to these risks.
Analysts say the policy changes could have a ripple effect across the broader Indian IT industry, which has long depended on the H-1B programme to deploy skilled engineers to client sites in the US. TCS’s strategy of developing local talent pools and limiting new visa usage may become a model for other firms as they adjust to new regulatory and economic conditions.
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