H-1B visa approvals for top Indian companies have experienced a significant decline in FY25, signaling a shift in the landscape of high-skilled foreign employment in the United States. Data reveals that the top seven Indian companies received only 4,573 H-1B approvals for initial employment, marking a 70% drop compared to FY15 and a 37% decrease from FY24. This considerable reduction raises questions about the factors driving this change and its potential impact on both Indian IT firms and the broader US technology sector.
The decline in H-1B approvals for Indian companies is contrasted by the growing dominance of US tech giants in securing these visas. For the first time, Amazon, Meta Platforms, Microsoft, and Google held the top four positions in H-1B approvals for initial employment in FY25. Amazon led with 4,644 approvals, followed by Meta (1,555), Microsoft (1,394), and Google (1,050). In comparison, among Indian companies, TCS (Tata Consultancy Services) secured 846 approvals, LTIMindtree 401, and HCL America 379. This data underscores a notable shift in who is utilizing the H-1B visa program the most.
Several factors contribute to this decline. Experts suggest that increased hiring of US workers by Indian-based companies, evolving technological landscapes, and the rise of remote work have reduced the demand for new H-1B visa holders. As Indian firms expand their US-based workforce and adapt to new technology, their reliance on bringing in foreign workers through H-1B visas may decrease. Additionally, the ability to perform work remotely from outside the US further diminishes the need for these visas.
Another factor potentially influencing the shift is related to policy changes and increased scrutiny of the H-1B visa program. While denial rates for new petitions remain relatively low at 2.8% in FY25, they experienced a minor increase from 2.5% in the prior year. Proposed legislative changes, including potential fees of $100,000 per visa and efforts to phase out the H-1B program, have also raised concerns among employers and policymakers. These factors may be prompting companies to re-evaluate their H-1B strategies.
The implications of this shift are multifaceted. For Indian IT companies, the reduced number of H-1B visas could impact their ability to staff projects and maintain their competitive edge in the US market. It may also lead to increased investment in local talent and further expansion of operations within the United States. For the US tech sector, the dominance of US companies in securing H-1B visas reflects a focus on hiring skilled foreign professionals, particularly in fields like artificial intelligence. This trend underscores the importance of attracting and retaining top talent to drive innovation and maintain global competitiveness.
Despite the decline in approvals for Indian firms, the H-1B visa program remains a crucial pathway for skilled foreign workers to contribute to the US economy. In FY25, over 28,000 US employers were approved to hire at least one new H-1B worker, demonstrating the program's broad reach beyond large technology companies. Moreover, a significant number of H-1B visa holders, 68,167, changed employers in FY25, indicating a dynamic labor market and opportunities for career advancement.
The drop in H-1B visa approvals for Indian companies and the corresponding rise of US tech giants in securing these visas highlights a transformation in the high-skilled labor market. As technology evolves and companies adapt to changing business environments, the demand for specific skills and the strategies for acquiring talent will continue to shift.
