&imwidth=800&imheight=600&format=webp&quality=medium "Why are Indian software giants cutting H-1B visa reliance")
As immigration becomes more complex and expensive, Indian software firms are reducing their dependence on H-1B work visas for hiring in the United States. Top companies have reduced the issuance of these visas by a massive 46 percent over the past five years.
According to official data from the US Citizenship and Immigration Services (USCIS), Infosys, HCL Technologies, Wipro, Tech Mahindra, and LTIMindtree have slashed the issuance of these visas by an averageof 46 per cent, reported ET.
Why are Indian companies cutting H-1B visas?
TCS has sponsored 5,505 such visas, becoming the second-largest H-1B sponsor, only behind Amazon.
Accenture, Capgemini, Cognizant, and IBM have also cut H-1B issuance between FY21 and FY25. Amazon, Microsoft, Meta, Apple, and Google, the biggest tech companies in the world, attract top talent from India as they are the biggest H-1B sponsors.
OpenAI and Anthropic, which are spearheading research on artificial intelligence, are also sponsoring foreign talent. Though their numbers are not comparable to those of the other tech bigwigs.
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Russell A Stamets, Partner at Delhi-based immigration advisory firm Circle of Counsel, told ET that the traditional models of labor and productivity are being upended by major technological change equivalent to the industrial revolution.
He said that the wholesale restructuring of the nature of work has set in.
He said that these companies had relied on exporting cheap labour abroad. Now, they are vulnerable to existential threats from AI large language models and political uncertainties. He claimed such companies are extremely vulnerable because of a lack of genuine innovation.
These companies have been automating and hiring local talent amid rising protectionism and the growing prominence of artificial intelligence.
This is because artificial intelligence is challenging the outsourcing model of business.
Companies like ChatGPT, Anthropic, Google, and Microsoft have already made many job roles redundant.
Many domestic and global IT companies have laid off thousands of workers over the past five years.