1 week ago
Indian IT Firms Cut H-1B Applications Amid Higher Fees
Indian technology companies are applying for fewer new H-1B visas in the United States.
These visas help companies bring some workers from other countries to work in America.
The number of eligible registrations dropped sharply for the 2027 financial year.
Higher fees made bringing new workers from overseas more expensive.
A new selection system also gives better chances to jobs with higher salaries.
More artificial intelligence tools may have reduced the need for some workers.
Companies are instead extending visas for workers already in the United States.
They are also hiring locally, moving workers between projects, and sending more work overseas.
Eligible H-1B registrations fell 38.5% to 211,600 for US FY27.
Immigration lawyers attributed the decline to higher fees, AI adoption, and weighted selection changes.
The registrations were at least a seven-year low, down from 343,981 the previous year.
Companies are emphasizing extensions, employer transfers, local hiring, and offshore work.
Applications from 18 Indian-listed IT firms and Cognizant fell to 8,160 from 36,453.
- Who
- Indian IT companies, including Tata Consultancy Services, Infosys, and Cognizant, are reducing fresh H-1B applications.
- What
- Eligible H-1B registrations for US FY27 fell 38.5% to 211,600, although the data does not distinguish new filings from extensions or status changes.
- Where
- The changes concern the United States H-1B visa program and Indian IT companies’ overseas staffing.
- When
- US FY27 runs from October 1, 2026, through September 30, 2027; the registration total was reported in May.
- Why
- Higher fees, a weighted selection system favoring higher salaries, increased AI use, and efforts to reduce H-1B dependence contributed to the decline.
Government Policy Rationale
Industry Response
Higher fees and immigration controls
Government Policy Rationale
The Trump administration introduced higher fees and other measures to reduce the influx of skilled immigrants, alleging that they displace local workers and are paid below prevailing US wages.
Industry Response
Companies have reduced new overseas hiring because the higher cost makes fresh H-1B applications less economical, while extensions and redeployments remain more practical.
Weighted visa selection
Government Policy Rationale
The government has moved toward a selection process that gives higher-paying jobs better odds than the traditional lottery, favoring what it describes as higher-skilled workers.
Industry Response
Immigration lawyers said the change lowered the chances for some applications and contributed to the steep decline in company filings.
Future workforce strategy
Government Policy Rationale
The policy aims to limit reliance on the visa process and encourage employment of workers receiving higher salaries in the United States.
Industry Response
Indian IT companies are hiring more local STEM graduates, transferring existing H-1B workers, and moving more work offshore to reduce dependence on new visas.
Key facts
- FY27 eligible registrations
- 211,600
- Annual decline
- 38.5%, from 343,981 registrations in the previous year
- Previous peak
- 758,994 registrations in 2024
- FY27 period
- October 1, 2026, to September 30, 2027
- Indian IT company applications
- 8,160 from 18 Indian-listed IT services firms and Cognizant, compared with 36,453 previously
- Main company response
- Filing extensions and employer-transfer petitions while increasing local hiring and offshore work
- Fee cited by immigration lawyers
- A $100,000 H-1B fee, which a court later set aside
Quotes
Poorvi Chothani
Founder and managing partner, immigration law firm LawQuest
“Now that a court has set aside the fee, and if the situation continues, more companies will file H-1B petitions for prospective H-1Bs based overseas if they are selected in the H-1B lottery next March 2027.”
rediff.com
“Bringing someone new over from India on an H-1B has become a far more selective call, given the higher cost and lower odds of selection.”
rediff.com
Sources
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