The recent announcement by the Trump administration that the new $100,000 H-1B visa fee will not be applicable to foreign students and workers already in the US is going to change the dynamics of local campus hiring by the Indian IT services companies.
Mixed views have emerged about the development as some argue that this may not help the Indian services companies, while a few others feel that it may lead to an increase in hiring of local students from US campuses by Indian IT services companies. This is because the exposure of Indian IT services companies to local campus hiring in the US is limited. At the same time, Indian IT services companies are gradually reducing their dependence on H-1B visa holders and is hiring locally.
“Typically, Indian IT firms have cumulatively sent 8,000 to 10,000 H1B employees annually to the US. If this halts to zero and they need to replenish, they will have to significantly increase their campus hiring in addition to laterals. However, Indian IT firms have had scarce US campus hiring in the past despite their claims. Historically, it has been hard for them not only to hire but also to train, retain, make them mobile, and ensure alignment with global delivery models,” remarked Yugal Joshi, partner, Everest Group.
He further pointed out that Indian IT services companies have massive learning and training centers and a work culture that promotes global delivery, but they do not have such facilities in the US. “Indian IT services companies may rely more on experienced contractors than campus hires, unless they are mandated to or need to be in the good books of the US government."
"Indian IT firms have rarely been the sought-after employer in US campuses. Given the challenging market in the US for newer jobs, Indian IT firms may be able to hire more if they plan to,” added Joshi.
Lately, there has been a distinct shift in how Indian IT services companies are recalibrating their hiring strategies in the United States. The recent H-1B visa policy changes—tightened regulations, higher wage thresholds, and increased scrutiny—are now forcing a serious rethink in workforce planning among the Indian tech majors.
“For years, industry leaders like TCS, Infosys, Wipro, HCLTech, and Tech Mahindra have depended on the H-1B route to deploy highly skilled engineers from India to client sites in the US. But that model, though efficient, is undergoing transformation. What’s emerging is a more localised hiring approach, especially focused on campus recruitment across American universities,” said Manoj Kandoth, founder and managing partner, Urjja Resources.
He is of the view that over the Indian IT services companies are setting up regional delivery centers in states like Indiana, Texas, Ohio, and North Carolina, strengthening relationships with universities to attract young, homegrown talent. “This shift isn’t just compliance-driven; it is a strategic evolution aimed at improving client confidence, cultural alignment, and business continuity,” added Kandoth.
He further pointed out that this represents a maturing phase in Indian IT’s globalisation journey. “Local hiring enhances brand acceptance, mitigates visa risks, and aligns with the US government’s focus on domestic employment. The trade-off, of course, lies in higher hiring and training costs, but the long-term benefits— stability, client proximity, and reduced geopolitical exposure—far outweigh them. The next three to five years could redefine the operating model for Indian IT in the United States. The question now is not whether local hiring will grow, but how fast companies can build a sustainable “hire local, deliver global” ecosystem—one that balances efficiency with inclusion in a changing global order,” Kandoth told THE WEEK.
Indian IT major such as TCS, which already employs more than 65 per cent of its US workforce locally, has accelerated partnerships with American universities and community colleges to build a sustainable talent pipeline. HCL Technologies, too, has expanded its innovation centres across North Carolina, Texas, and Connecticut to tap into homegrown talent.