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Indian IT sector reduces H-1B reliance through expanded US hiring

Major Indian technology firms have significantly decreased their dependence on H-1B visas over the past decade by boosting local recruitment in the United States, according to industry body Nasscom. The shift comes as companies invest heavily in strengthening the American STEM talent pipeline.

LSN India · 25 August 2026

Indian IT sector reduces H-1B reliance through expanded US hiring

India's leading IT services companies have substantially reduced their reliance on H-1B visa sponsorships, pivoting instead towards local hiring practices in the United States over the past ten years, the National Association of Software and Services Companies said on Tuesday.

The industry transition reflects a strategic realignment among major players in India's $254 billion technology services sector. Rather than importing talent through visa programs, firms have increasingly recruited skilled workers already present in the US market, according to Nasscom's assessment.

To support this shift, Indian IT companies have committed over $1.1 billion towards initiatives strengthening the American STEM education and talent pipeline. These investments span university partnerships, scholarship programs, and skills development initiatives aimed at building a more robust domestic US workforce in technology fields.

The move comes as proposed increases in H-1B visa fees face potential implementation. Industry analysts suggest that rising visa costs have incentivized companies to develop alternative talent acquisition strategies, making local hiring a more economically attractive option while simultaneously addressing concerns about visa-dependent business models.

The pivot underscores the Indian IT sector's evolving approach to managing global talent needs while adapting to changing regulatory and economic pressures in its largest overseas market.