Mid-sized Indian IT companies are downplaying concerns over the Trump administration’s steep hike in H-1B visa fees, saying the impact on their operations will be limited. While the move has unsettled parts of the global outsourcing sector, several executives at these firms say they are better positioned than larger players, due to a greater focus on local hiring and diversified delivery models across the U.S. and India.
The revised fee structure, which has pushed H-1B petition costs to nearly $100,000 in some cases has sparked concern over the financial strain of maintaining large onsite teams in the U.S. However, earnings call from several mid-cap Indian IT firms this quarter suggest that the fallout may be milder than expected. Executives say their dependence on H-1B workers has already declined in recent years as they’ve invested more in hiring locally and building nearshore delivery centers across North America.
Tech Mahindra, one of India’s leading mid-tier IT service providers, has emphasized that its exposure to the H-1B program is minimal. The company said it has steadily shifted its workforce toward offshore and nearshore locations, reducing reliance on U.S. work visas. Today, fewer than 1% of its global employees hold H-1B visas, and overall dependence on U.S. visa routes has dropped below 30%, according to the company.
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Managing Director and CEO Mohit Joshi called the visa fee hike “manageable,” outlining a three-part strategy the company has already put in motion. He said Tech Mahindra is focusing on “identifying and safeguarding critical onsite talent roles,” strengthening its U.S. hiring pipeline, and expanding its delivery network in nearby markets like Canada, Mexico, and Brazil. According to Joshi, this interconnected nearshore model not only helps control costs but also strengthens business continuity.
Industry analysts note that this shift has been years in the making. The rapid growth of Global Capability Centres (GCCs) in India has fundamentally changed how U.S. companies manage their tech operations, reducing the need for visa-dependent staff movement. These in-house hubs work in tandem with Indian IT service providers, building a distributed delivery network that is naturally less exposed to U.S. immigration policy shifts.
“American companies have been investing in setting up GCCs in the country, which work closely with system integrators on Indian shores. This further insulates them from H1-B dependence,” Pareekh Jain, chief executive at tech research firm EIIRTrend shared with Financial Express.
Analysts and talent consultants say the new H-1B fee structure, which mainly affects fresh applications, gives Indian IT firms some breathing room before the changes take effect in April 2026. They believe mid-sized players, already operating with a greater share of offshore talent, are well-positioned to adapt. The transition period, they note, offers enough time to fine-tune hiring strategies and rebalance workforce deployment without major business disruption.
Mphasis shared a similar outlook, saying the immediate impact of the H-1B fee hike is expected to be minimal. CEO Nitin Rakesh noted that clients with established capability centres and visa-compliant teams haven’t raised major concerns yet. At the same time, he acknowledged that the company is taking steps to reinforce its delivery network and talent supply chains to better manage potential H-1B fluctuations over the next couple of years.
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Meanwhile, larger IT players like Tata Consultancy Services, Infosys, Wipro, and HCLTech have been steadily cutting back their dependence on H-1B visas since processing hurdles began to increase in 2018. Over the years, these firms have shifted toward hiring more local talent in the U.S. and building stronger regional delivery networks, a strategy that has helped insulate them from policy swings around visa regulations.
“The conversation around (challenges in obtaining) H-1B visas started back in 2018, and since then, the industry has seen multiple macro headwinds like the global pandemic and the slowdown in BFSI. So, IT firms have had to adapt,” as per Neeti Sharma, chief executive, TeamLease Digital.
Tata Consultancy Services (TCS) has confirmed that it will halt new H-1B visa hires in the United States for the current financial year, as the company shifts focus toward strengthening its local workforce. “We’ll continue to hire more locally… we had 500 employees on H-1B visa travelling from India to the U.S. so far this financial year,” CEO K. Krithivasan said.
The company noted that of its 32,000 to 33,000 employees based in the U.S., about 11,000 currently hold H-1B visas, and that it has been deploying fewer visa holders than the number approved each year.
Other major employers, including Cognizant has also reportedly paused H-1B hiring in light of the steep rise in visa application cost.