H-1B Approvals for Indian IT Companies Hit 10-Year Low: Shifting Trends in Tech Recruitment

The number of first-time H-1B visa approvals for major Indian IT companies has plummeted to 4,573, marking the lowest point in a decade. This represents a substantial 70 percent decline compared to 2015 figures and a 37 percent drop from 2024.

Data compiled by the National Foundation for American Policy (NFAP) from the US Citizenship and Immigration Services (USCIS) H-1B Employer Data Hub reveals this dramatic decrease for leading Indian IT service providers.

Tata Consultancy Services (TCS) stands as the only Indian organization among the top five US employers of H-1B workers. According to The Times of India, TCS secured the largest share among the top seven IT firms.

TCS received 846 initial employment clearances in FY 2025, down from 1,452 in 2024 and 1,174 in 2023. However, the company reported 5,293 approvals for "continuing-employment," covering visa renewals for existing H-1B holders.

Notably, TCS's extension rejection rate increased to 7 percent from 4 percent in 2024, though the overall company-wide continuing-employment rejection rate remained low at 1.9 percent.

This significant decline in new H-1B entries, coupled with increasing rejections or decreasing initial employment filings, indicates a broader structural shift in overseas tech recruitment practices.

The survey indicates employers are now prioritizing retention of current US-based employees rather than recruiting fresh talent from abroad.

For the first time, US-based tech giants including Amazon, Meta, Microsoft, and Google occupy the top four positions for new H-1B approvals. This highlights a shift in the visa landscape away from outsourcing-focused Indian companies toward major American competitors.

Most H-1B applications are petitions for continued employment, and major IT services companies generally maintain low rejection rates. Among the top 25 employers for initial H-1B applications, only three are Indian enterprises.

Rejection rates for continuing-employment petitions remained between 1 and 2 percent for Infosys, Wipro, and LTIMindtree. However, FY 2025 saw a significant increase in initial employment rejections.

TCS maintains one of the lowest rejection rates among large companies at 2 percent, followed by HCL America (6 percent), LTIMindtree (5 percent), and Capgemini (4 percent).

According to immigration portal Beyond Border, approvals for individuals classified as "software engineers" during the labor-certification stage have been declining for four consecutive years.

H1BGrader reports that labor certifications in this category decreased from 40,378 in 2022 to 23,922 through the third quarter of 2025.