TCS, India’s leading software exporter, has announced a historic decrease in its dependence on H-1B visas, with just about 500 of its US employees presently relying on this visa category. This dramatic change is a reflection of the company’s changing recruitment strategy, a direct reaction to new US immigration regulations, increased charges, and an effort to establish a more robust local talent base. The announcement made by TCS CEO K Krithivasan and HR head Sudeep Kunnumal represents a definite departure from tradition, one marking industry-wide change and a strategic attempt at long-term stability in the world’s largest technology market.
TCS’s Sharp Drop in H-1B Visa Employees: Latest Figures Revealed
TCS reaffirmed that, as of October 2025, just 500 of its associates in the United States hold H-1B visas—a steep decline from earlier years when visa-driven assignments were a mainstay of the company’s international business. During the current year, TCS received 5,505 H-1B visas but used fewer than 10% of these sanctioned positions and instead resorted to large-scale local hiring.
The company’s overall US workforce of about 33,000 consists of almost 11,000 employees holding H-1B visas in different statuses—a number that encompasses not only new entrants but longer residents as well. Executives explained that not all approvals on H-1B result in deployment; lots of visas are being renewed or associated with geographic transfers instead of new international assignments.
CEO K Krithivasan emphasized that TCS has “no plans” to hire new H-1B workers this year, focusing efforts on recruiting American residents and enabling knowledge transfer through local training and upskilling programs. The company is doubling down on internal transformation and global expansion through artificial intelligence, with nearly $7 billion invested in new AI data centers worldwide, a move intended to set the foundation for future growth and service innovation.
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What’s Driving TCS’s US Localization Strategy in 2025?
TCS’s announcement is made at a point when the US government has tabled dramatic increases in H-1B fees (as high as $100,000 per applicant) and stepped up stricter scrutiny of visa sponsors, creating more uncertainty for Indian IT companies that have hitherto been used to such talent mobility.
In the past ten years, TCS has become the leading H-1B visa sponsor, hiring more than 98,000 visa holders between 2009 and 2025, replacing US technology leaders Microsoft, Apple, and Google. But a subdued demand environment for IT services, sectoral retrenchment, and client caution in spending have led to the company embracing a “local-first” workforce model at a fast pace.
Company executives stressed how nearshoring in Latin America, Europe, and Asia-Pacific, combined with US-based campus recruitment and reskilling, have allowed TCS to reduce visa reliance without service impairment or significant loss of talent. The new operating model promotes rotations of employees, upskilling with AI and cloud technology, and investments in local talent acquisition initiatives—supported by a strong severance package for impacted employees.
This movement also captures the increasing sophistication of client requirements, especially in AI, cloud, and digital transformation, which increasingly demand localized, advisory delivery and in-market skills.
Impact on Indian IT: How TCS’s Decision Alters the Market
TCS‘s action heralds a larger shift among Indian IT majors as geopolitical and regulatory imperatives redefine international service delivery patterns. By significantly curtailing H-1B dependence, TCS will be poised to avoid future policy dangers, manage cost fluctuations related to US visas, and enhance local brand image—all critical for sustaining long-term US expansion.
Industry watchers predict that peers such as Infosys, Wipro, and HCL would also follow suit soon, furthering the drive for localization in IT services. The move is also likely to de-politicize the US visa system and maybe propel innovation in talent models. Lower visa quotas, though, might hurt some mid-sized companies that are still reliant on global talent rotations.
For investors, analysts forecast that although short-term expenses will increase, TCS’s robust, diversified business model and early transition to AI and deep localization make a strong case for future growth and competitiveness.
The Future of TCS in the US: Trends, Investments & Outlook
TCS’s transformation of its workforce is typical of an industry surfing the twin waves of AI-induced change and global regulation change. With a significantly reduced level of H-1B employees and a greater emphasis on employee development and native job creation, TCS is becoming a future-proofed organization. The company’s ambitious transition challenges clients and competitors to reimagine talent, delivery, and marketplace strategy in the age of digital.
The firm is also making significant investments in its full-fledged employee development programs to upskill and reskill its employees in order to address the changing technology needs. This involves increasing AI research laboratories and data centers both locally in India and globally, with emphasis on creating a sustainable talent pipeline that has the capability to innovate and perform in local markets across the globe. TCS is also focusing on creating jobs in the US by hiring locally from US universities and tech communities, enhancing its employer brand while driving economic growth in the local markets it serves.
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