Indian IT firms key beneficiaries of H-1B visa sponsorship, data shows

Apart from employees of Amazon, who were the top beneficiaries of the H-1B visa provision in FY24, employees of IT companies such as Infosys, Cognizant, and TCS also accounted for a significant share of H-1B visas, according to data from the United States Citizenship and Immigration Services (USCIS).

The H-1B is a temporary or non-immigrant visa category allowing employers to petition for foreign professionals to work in “specialty occupations” that require at least a bachelor’s degree or an equivalent in fields such as mathematics, engineering, technology, and medical sciences. Typically, the initial duration of an H-1B visa classification is three years, which may be extended for a maximum of six years.

In the said fiscal, as of September 30, 2024, 9,265 Amazon employees were beneficiaries of the H-1B visa category, followed by Infosys with 8,140 employees, Cognizant (6,321), Google (5,364) and TCS (5,274). Other Tier-I Indian organisations such as HCL America Inc., LTIMindtree, Wipro, and Mphasis, were among the top 50 organisations to sponsor employees with the non-immigrant visa.

According to the American Immigration Council, during US President Trump’s previous administration, the USCIS initially denied a larger percentage of H-1B petitions than in the preceding four years. However, a number of these denials were later overturned, with denial rates decreasing substantially during the latter half of FY20.

Manoj Dharmani, CEO, DUDIGITAL Global Ltd., commented, “The future of US immigration policy may see adjustments, potentially emphasising merit-based criteria, while still maintaining America’s status as a leading destination for global talent. For Indian nationals, this could mean continued opportunities in specialised fields, particularly in technology, engineering, and other STEM areas. However, these opportunities may come with enhanced documentation requirements and stricter qualification criteria across various visa categories, including the H-1B, F-1, EB-series, and H-4.”

He added that in the long term, while challenges may arise, the US and India may continue to collaborate, especially in sectors that rely on high-skilled labour. “Navigating this shifting landscape will require adaptability, but opportunities for Indian professionals remain strong, especially for those with the right qualifications and expertise in high-demand fields.”

Denial of new H-1B petitions for initial employment rose from 6 per cent in FY15, to 24 per cent in FY18, before dropping to 21 per cent in FY19, 13 per cent in FY2020, 4 per cent in FY2021, and only 2 per cent in FY22, making the latter two the lowest denial rates ever recorded.

On the other hand, the immigration council pointed out that the denial rate for petitions for continuing employment was 2 per cent in both FY22 and FY21, down from 7 per cent in FY20, and 12 per cent in both FY18 and FY19.

Data from the US Department of State said 188,123 H-1B visas were issued in FY19. However, due to the Covid-19 pandemic, posts were instructed to suspend routine visa services and provide only “mission-critical and emergency services” in late March 2020. This brought the number of such visas issued to 61,569 in FY21. In FY23, this number rose to 265,777.

“Any significant change in immigration policies naturally influences how companies structure their global talent strategies. The key is adaptability - organisations have become skilled at balancing on-site and off-shore delivery models to ensure business continuity. The fundamentals of the India-US tech partnership are robust enough to evolve with policy changes, while continuing to deliver value to both economies. Relaxing H-1B restrictions could encourage some aspiring Indian IT professionals to pursue opportunities in the US, further enhancing this talent flow,” said Aditya Narayan Mishra, the MD & CEO of CIEL HR.

He added this visa pathway keeps American businesses competitive and strengthens India’s position as a key global tech talent source.

However, starting with FY25, USCIS changed from an employer-based to a beneficiary-centric registration system, the American Immigration Council said. The agency has expressed concern after the FY24 registration period about whether abuse of the system led to USCIS receiving more eligible multiple registrations filed on behalf of a non-citizen with more than one registration, than single registrations.

In April 2024, USCIS announced it had received enough registrations for FY25, and selected 114,017 beneficiaries, for whom it then selected 120,603 registrations. In August 2024, the agency conducted a second selection to reach the 65,000 regular H-1B visa number limit, 13,607 more beneficiaries from the initial registrations for whom USCIS selected 14,534 registrations.

USCIS then saw a significant decrease in the total number of registrations submitted, compared with FY24, including a decrease in the number submitted on behalf of the same beneficiary. The number of eligible registrations in FY25 was down by 38.6 per cent, from 758,994 in FY24 to 470,342.

Sumit Sabharwal, Country Leader for India for Deel, a global HR and payroll company that also deals with immigration, said, “The US has been a significant driver of India’s tech industry, creating jobs and fostering innovation. However, any shifts in the US policy may directly impact India,” adding the rise of remote work in recent years has made it easier for US companies to set up base in foreign markets like India.

“While the H-1B visa programme is crucial, it’s essential to address the challenges posed by annual caps and stringent regulations to ensure continued supply of talent. Global hiring is on the rise, and with ongoing policy changes, US companies can consider directly hiring remote talent through services like Employee of Record (EOR) - an organisation legally responsible for employment matters on behalf of an employer. This approach allows businesses to expand their market reach and invest in a fast-growing economy like India. It also allows these businesses to have wider access to India’s vast market potential and booming workforce.”