H-1B visa registrations by India's six largest IT services firms plummeted by a staggering 92% for fiscal year 2027, according to a recent report. This dramatic reduction saw these companies file a mere 1,763 applications, a sharp contrast to the 21,919 registrations submitted in the preceding year.
Stricter US Immigration Rules Impact Filings
The significant decline, detailed in a report by The Economic Times based on US government data, marks the most substantial drop for these firms outside of the COVID-19 pandemic years. It comes amid a tightening of the US immigration system, which now includes a $100,000 fee for certain new visas and revisions to the H-1B lottery system designed to prioritize highly paid and skilled workers.
Industry body Nasscom and various immigration experts attribute this sharp fall among Indian IT companies partly to their increased focus on hiring local talent within the United States. This strategy reduces the necessity of transferring employees from India on H-1B visas.
Local Hiring and Reduced H-1B Dependence
Rajesh Nambiar, president of Nasscom, highlighted that most Indian organizations are no longer heavily reliant on H-1B visas. They have successfully implemented alternative methods for local hiring and managing talent mobility without depending on these specific visas.
In comparison, major US companies also experienced a reduction in H-1B filings, though less severe. Microsoft, for instance, filed 2,481 registrations for FY27, exceeding the combined total of the six Indian IT firms. Apple and JPMorgan registered 2,265 and 935 applications, respectively. Overall, registrations at Microsoft, Apple, JPMorgan, and Walmart saw declines ranging from 16% to 40%.
H-1B Visa System Under Scrutiny
The US government caps new H-1B visas at 85,000 annually, with 20,000 of these reserved for applicants holding a US university master’s degree or higher. The lottery typically takes place between March and April. While USCIS has released registration figures, the number of approvals from this reduced pool remains undisclosed.
Indians historically account for a dominant 71% of all H-1B visas issued. However, increased scrutiny is evident, with visa processing suspended for companies like Cognizant and Cloudera. Infosys and TCS are also facing audits of Labor Condition Applications (LCAs) and closer examination of third-party client placements, signaling a potentially very different foreign-labor visa system in the near future as enforcement efforts expand.