Tata Consultancy Services (TCS) CEO K. Krithivasan stated that the company does not plan to hire new H-1B workers. In an interview, he added that TCS will focus on growing its workforce with local talent.
TCS has long been the top employer of H-1B workers in the U.S., hiring a total of 98,259 visa holders between 2009 and 2025. In 2025 alone, the company brought on 5,505 H-1B employees, outpacing tech giants including Microsoft, Meta, Apple, and Google.
“We have enough people on H-1 already in the U.S. I don’t think we would be looking for adding to that count anytime now (sic),” Krithivasan said.
“Our original plan was always to send people on H-1 with the intention of bringing them back and rotating them. So it continued to focus on bringing back at the end of the programmes, or rotating them with locals. And how much we would renew or whom we would renew is a call we will take at the appropriate time. We are looking to increase our local participation,” Krithivasan said while speaking about renewal of existing H-1B visas.
“At the other geographies that we operate, like Latam (Latin America) or Middle East or APAC (Asia-Pacific), we operate with a very high percentage of local associates, and we are also moving to see how the new AI engagements are going to be done. They are going to require much closer collaborations with our clients, in terms of understanding the requirements and in terms of doing the build,” Krithivasan said.
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“It is going to require a very diverse skillset, compared to pure engineering or technology skills alone. Taking all this into mind, we would continue to expand the local workforce in all of the geographies, particularly in the US and Europe,” Krithivasan added, as quoted by the Deccan Chronicle.
Industry analysts anticipate not just a sharp decline in H-1B applications, but also a potential pivot toward L-1 visas, which enable companies to transfer employees from overseas offices to their U.S. branches.
“With TCS CEO stating openly that they would not look at hiring new H-1B holders, it is just a matter of time before other major corporations like Amazon, Cognizant, Microsoft, etc. follow suit. But since these MNCs have Indian branches, if they have any requirement for an on-site employee in the United States, they would look towards shifting them on-site through an L-1 visa instead of paying $1,00,000 through H-1B,” according to M. Dinesh, a consultancy manager in Hyderabad.
While the annual H-1B visa cap, set by Congress, currently stands at 65,000, with an additional 20,000 reserved for applicants holding a U.S. master’s degree or higher. Altogether, the program allows for 85,000 visas to be granted each year.
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However, that does not mean only H-1B visa holders under the 85,000 annual cap can work in the U.S. Additional visas are available for foreign workers under the cap-exempt category. Certain employers are “cap-exempt,” meaning they are not bound by the statutory numeric limit. This includes institutions of higher education, non-profit organizations such as select hospitals, K-12 schools affiliated with colleges, non-profit research organizations, and government research institutions.
All employers hiring H-1B workers, whether cap-subject or cap-exempt, must first submit a Labor Condition Application (LCA) to the Department of Labor (DOL). After the LCA is certified, the employer files a Form I-129 petition with USCIS to classify the worker as an H-1B nonimmigrant. Employers can file on behalf of employees located either inside or outside the United States.
In some cases, the individual may already be in the U.S., such as when an employer petitions to change their status from another visa category to H-1B.
After USCIS approves an H-1B petition, workers outside the U.S. typically need to obtain an H-1B visa at a U.S. consulate before entering the country. In certain cases, even individuals already in the U.S. may be required to travel abroad for consular processing to activate their H-1B status.
While TCS’s decision to pause hiring new H-1B workers signals a slowdown in one of the largest sources of foreign talent, the U.S. visa system still allows for flexibility through cap-exempt categories. Institutions like universities, non-profit research organizations, and certain affiliated hospitals can continue to hire without being limited by the 85,000 H-1B cap, showing that even as major companies step back, pathways for specialized talent remain open.