In a bold move that reflects broader industry trends, Infosys has made significant strides to reduce its reliance on the H1B visa program. This shift marks a pivotal change in how the tech giant is adapting to the evolving workforce dynamics in the United States. By focusing on local talent, nearshore hiring, and strengthening its global workforce model, Infosys is positioning itself to remain competitive without being overly dependent on foreign workers.
key changes to Infosys Reduces H1B Visa Reliance reduction
The Strategic Shift Towards a Resilient Workforce Model
Infosys’ Chief Financial Officer, Jayesh Sanghrajka, highlighted the company’s growing confidence in its operational model, which now heavily leans on local hiring and nearshore talent. As part of a strategic move, Infosys has reduced the proportion of its onsite workforce in the U.S. to 24%, down from approximately 30% previously. This decline reflects a broader shift away from relying on H1B visa holders, helping the company foster a more resilient workforce model.
Key Changes in Infosys’ Workforce Strategy
| Key Change | Details |
|---|---|
| Onsite Workforce Reduction | The proportion of onsite employees in the U.S. has decreased from 30% to 24%. |
| Lower H1B Visa Dependency | Over 60% of Infosys’ U.S. onsite workforce is no longer reliant on H1B visas. |
| Increased Local Hiring | Infosys is focusing more on local hires in the U.S., reducing the need for foreign workers. |
| Nearshore Expansion | A growing emphasis on hiring in countries near the U.S. has contributed to the model shift. |
This reduction in onsite workforce reliance on H1B visas is not an isolated change. It mirrors a broader trend in the Indian tech industry, with companies like HCL Tech also reducing their dependence on foreign talent by focusing more on local hires.
Infosys’ Growing Focus on Nearshore Hiring
A key strategy for Infosys has been expanding its nearshore workforce—employees based in countries close to the U.S. Nearshoring offers many advantages, including lower costs and the ability to maintain operational efficiency while reducing dependency on the H1B visa program.
By hiring in nearby countries, Infosys can fill critical roles and ensure operational continuity without the long approval processes and potential political risks tied to H1B visas. This move is aligned with a broader industry trend of tech companies optimizing their workforce distribution by hiring both locally and nearshore to manage their talent pipelines more effectively.
Parallel Shift in HCL Tech: A Similar Story
Infosys isn’t alone in adopting a more localized workforce strategy. HCL Tech, another major player in the Indian IT sector, has also seen a drastic reduction in its reliance on H1B visas. HCL Tech reports that about 80% of its U.S. workforce now consists of local hires, with the number of H1B visa applications dropping significantly to just 500–1,000 per year.
This transformation highlights how Indian-origin tech companies are increasingly relying on a local workforce, enabling them to be more self-sufficient and less vulnerable to changing U.S. immigration policies.
The Impact of Trump’s Return on H1B Visas
The future of the H1B visa program remains uncertain, particularly with the potential return of Donald Trump to the U.S. presidency. Trump’s previous administration had enforced stricter policies on H1B visas, prioritizing American workers and limiting access to foreign tech talent. If similar policies are reintroduced, companies like Infosys and HCLTech may face even more challenges in securing visas for their employees.
However, despite this uncertainty, both Infosys and HCLTech have made strides to future-proof their operations by diversifying their talent sources. These companies are adapting to a landscape that may become more restrictive and competitive.
The Continued Importance of H1B Visas for Indian-Origin Tech Companies
Even as Infosys and HCLTech reduce their dependence on H1B visas, Indian-origin tech companies continue to play a significant role in the U.S. H1B visa market. According to US Citizenship and Immigration Services (USCIS), Indian-origin firms accounted for about one-fifth of all H1B visas issued in recent years. In the April–September 2024 period, these companies received nearly 25,000 H1B visas, underlining the ongoing demand for skilled tech talent from India.
Despite the challenges posed by potential changes to immigration policies, the H1B visa program remains crucial for Indian tech companies looking to expand their footprint in the U.S. However, the shift towards local and nearshore hiring signals that these companies are finding new ways to balance global staffing needs with the unpredictability of U.S. immigration laws.
Infosys Leads the Way in Workforce Flexibility
The reduction in Infosys’ H1B visa reliance represents a larger trend in the tech industry towards greater workforce flexibility and resilience. As the global workforce landscape evolves, companies are finding new ways to adapt to changing political and economic environments while ensuring that they continue to have access to the skilled talent they need.
Infosys’ shift towards local hiring, nearshore expansion, and strategic workforce management demonstrates a forward-thinking approach that is not only more sustainable but also better positioned to weather the uncertain future of the H1B visa program.
While the future of H1B visas remains in flux, Infosys is showing that adaptability and innovation are key to maintaining a competitive edge in a rapidly changing global tech landscape.
