In fiscal year 2024, the top seven Indian IT companies collectively secured only 7,299 H-1B visa approvals for new employment, a substantial decline from the 14,792 approvals reported in fiscal year 2015. This significant decrease was highlighted in an analysis conducted by the National Foundation for American Policy (NFAP), a non-partisan U.S.-based think tank.
These 7,299 approvals represented just 5.2% of the total H-1B visa approvals for fiscal year 2024, a figure that translates to a mere 0.004% of the U.S. civilian workforce. Denial rates for H-1B visa applications continued to remain low, standing at 2.5% in FY24, slightly down from the 3.5% recorded in FY23, according to the NFAP report.
Despite the current low denial rates, the report warned of a potential reversal if the incoming Trump Administration reinstates the restrictive immigration policies implemented during his first term in office. Such policies had previously resulted in heightened denial rates for H-1B visa applications.
Among individual companies, Amazon emerged as the top employer for H-1B visa approvals for initial employment in FY24, securing 3,871 approvals. However, this was a decline from the 4,052 approvals Amazon achieved in FY23 and the 6,396 in FY22. Cognizant followed with 2,837 approvals, while Infosys obtained 2,504, and Tata Consultancy Services (TCS) recorded 1,452. Other key players included IBM with 1,348 approvals, Microsoft with 1,264, HCL America with 1,248, Google with 1,058, Capgemini with 1,041, and Meta Platforms with 920 approvals.
A notable development in FY24 was Tesla’s significant progress in H-1B approvals. The company, led by Elon Musk, secured the 16th position among employers, marking its first appearance in the top 25. Tesla achieved 742 H-1B approvals, more than doubling its totals from FY23 and FY22, which were 328 and 337, respectively. The report noted that Tesla’s visa requests were primarily driven by its requirements in manufacturing, research and development, and engineering roles.
While certain U.S.-based companies such as Tesla made significant gains, another report pointed out that Indian IT firms, including TCS, Wipro, Infosys, and HCL, have reduced their reliance on H-1B visas by 56%. This reflects a strategic shift among these firms, which have established strong operations in the United States. Increasingly, they are focusing on hiring local talent and sponsoring Green Cards to attract and retain skilled professionals within the country.
This shift in approach underscores the changing dynamics of workforce strategies among Indian IT firms. As these companies continue to expand their presence in the United States, they are adapting to local hiring needs and reducing their dependency on temporary work visas.
The demand for H-1B visa holders remains robust in the U.S., particularly for roles requiring specialized skills in rapidly evolving areas such as digital transformation, cloud computing, and artificial intelligence. According to Vic Goel, managing partner at the U.S.-based corporate immigration law firm Goel & Anderson, “U.S. companies must rely on H-1B visas to fill roles with skills not easily found domestically, especially in emerging tech.” This perspective highlights the crucial role H-1B visa holders play in addressing skill gaps in cutting-edge industries.
The significant decline in H-1B visa approvals for Indian IT companies in FY24 reflects broader trends in immigration and workforce strategies. While some U.S. companies have managed to increase their use of H-1B visas, Indian IT firms are increasingly emphasizing local recruitment and long-term employment solutions. These evolving approaches illustrate the complex interplay between immigration policies, corporate strategies, and the growing demand for highly specialized talent in the global tech industry.