Understanding the Impact of US Immigration Policy on Indian IT Giants

Recent changes in the US H-1B visa policy under President Donald Trump's administration have placed major Indian IT firms, including TCS and Infosys, in a vulnerable position. These companies, which rely heavily on the H-1B visa program to employ skilled professionals for US-based assignments, are now facing increased operational costs and potential disruptions due to stricter immigration rules.

Moody's latest report highlights that while TCS and Infosys are better positioned to absorb these increased costs due to their superior profit margins, the overall impact of these policy changes could still pose significant risks. The report also notes that Indian-origin technology firms secured approximately 20% of all H-1B visas granted by the United States, with Infosys and TCS leading the pack.

Strategies for Mitigating Risks

To mitigate these risks, companies like TCS, Infosys, and Hexaware Technologies have been gradually increasing their onshore hiring in the US. This strategy aims to ensure minimal disruptions in serving their customers while navigating the complexities of the new immigration landscape. Despite these efforts, the potential for a shrinking labor pool and escalating expenses remains a concern for these firms.

As the US continues to adjust its immigration policies, the global IT industry, particularly in India, watches closely. The outcome of these changes could have far-reaching implications for the sector's future in the US market.