56% Drop in H-1B Sponsorship by Indian IT Firms Over Eight Years

(UNITED STATES) A sharp, eight-year pullback by Indian IT firms from the U.S. H-1B visas program has shifted the balance of power in tech hiring, with American companies now capturing a growing share of approvals. New NFAP data show a nearly 56% fall in initial H-1B sponsorships by seven major Indian IT firms since 2015, even as U.S. tech employers gained momentum. The change reflects rising political pressure inside the United States 🇺🇸, higher costs and risk for sponsors, and new work models that favor home-based teams over on-site deployments. It also shows how global tech hiring continues to adjust to tight immigration rules and fast-moving business needs, especially in cloud and AI.

According to analysis of NFAP data, Indian IT firms filed about 15,100 H-1B applications for entry-level roles in 2015. By the 2022–2023 period, filings had dropped to roughly 6,700—a fall of about 56%. One large Indian IT firm, once among the top H-1B users, saw an approval-rate slide of about 75% over the same period. Meanwhile, five leading U.S. tech companies together secured nearly 28,000 H-1B approvals in fiscal year 2024.

As political voices in Washington and in many states pressed to limit foreign hiring, Indian IT sponsors pulled back, and American household-name tech firms used more visas to meet demand for specialized roles. The change has real-world effects:

• For thousands of Indian engineers who once expected multi-year U.S. placements, the path now often leads to remote work from India or shorter client visits, not long-term jobs in America.
• For U.S. tech employers, a larger share of approvals means they can hire more global specialists in high-need areas.
• For policymakers, the mix of sponsors reveals how policy choices and public pressure can push global firms to change hiring behavior quickly.

Trends continuing into 2024–2025

NFAP data and company-level patterns point to a clear shift: Indian IT services companies are relying far less on H-1B visas, while U.S. tech companies keep using the route to fill skill gaps. VisaVerge.com reports that this trend has continued through 2024 and into 2025, with major U.S. tech employers leaning on H-1B visas for roles tied to AI, advanced cloud systems, and enterprise platforms.

How H-1B hiring works (core steps)

Employers must still follow the same core steps for H-1B hiring:

1. A U.S. sponsor files Form I-129 to seek H-1B classification for a specialty occupation worker.
2. The form includes details on the job, pay, and worker qualifications.
3. If approved, the worker applies for a visa at a consulate and seeks admission at a U.S. port of entry.

Official resources (always use the most current pages) include:
– USCIS H-1B program: https://www.uscis.gov/working-in-the-united-states/temporary-workers/h-1b-specialty-occupations
– Form I-129: https://www.uscis.gov/i-129

These pages explain eligibility, required documents, wage and job rules, and compliance duties.

On-the-ground moves by Indian IT firms

NFAP data align with several operational changes at Indian IT firms:

• Teams that once rotated to the U.S. for long assignments now stay in India and work remotely.
• Companies are building larger delivery centers in India and other countries.
• They are hiring more local U.S. staff for client-facing roles, reducing the number of H-1B petitions.
• Firms are investing in automation, AI, and platform integration to cut manual workload.
• Many have publicly stated that stricter rules, higher costs, and uneven approval outcomes pushed them to cut back on visa-driven staffing.

U.S. tech firms’ approach

U.S. tech companies have leaned into H-1B hiring for hard-to-fill roles, including:

• Data science
• Machine learning
• Cybersecurity
• Cloud architecture
• Enterprise software

NFAP data indicate that in FY2024, the top five U.S. tech firms together secured close to 28,000 approvals—an unmistakable sign of strong employer demand for specialized talent.

Key NFAP figures (summary)

• FY2015: Top seven Indian IT firms filed about 15,100 initial H-1B applications for entry-level roles.
• 2022–2023: Filings by those firms fell to about 6,700 (~56% reduction).
• One major Indian IT firm experienced about a 75% drop in approval rates over the period.
• FY2024: Five leading U.S. tech firms obtained nearly 28,000 H-1B approvals.

Why the shift happened

Industry observers point to several drivers behind the shift:

• Tougher U.S. policy climate made mass filings riskier for Indian IT firms; public debate focused on whether H-1B visas were replacing U.S. workers or suppressing pay.
• The pandemic normalized remote work, making it efficient to serve U.S. clients from India without visas.
• Digital transformation and platform-based work reduced the need for long on-site stints in the U.S.

Effects on workers, employers, and policy

The shift matters for multiple stakeholders:

• Worker mobility and skill growth:
  • Entry-level Indian engineers now have fewer chances for early U.S. on-site experience.
  • Alternatives include remote client work, short business trips, or moving to other markets with friendlier immigration paths.
• Employer delivery models:
  • Indian IT firms can meet client needs via remote teams and short-term travel, but clients wanting on-site presence may push for local U.S. hires—raising costs but lowering immigration risk.
• U.S. tech competitiveness:
  • Increased H-1B approvals for U.S. tech firms help them hire niche experts needed for AI, security, and cloud projects—accelerating product roadmaps.
• Policy outcomes:
  • Policymakers who wanted to curb heavy visa use by outsourcing-heavy sponsors are seeing results, but the economy still relies on inflows of high-skill workers.
• Family and personal decisions:
  • Fewer long-term moves to the U.S. for entry-level staff at Indian IT firms affect schooling, relocation, and career planning for many families.

Practical guidance for employers and workers

For employers:
– File carefully: clear job descriptions, proof of degree-field match, and wage documentation matter more than ever.
– Use the current resources: Form I-129 and USCIS H-1B program.
– Expect timelines, selection steps, and evidence requests to change; check for updates before filing.

For workers:
– Set realistic expectations: entry-level candidates in India may face fewer early relocation chances.
– Build strong project experience, earn in-demand credentials, and target advanced or specialized roles to improve future odds.

Broader takeaway and outlook

• NFAP data capture a structural shift: the center of gravity in H-1B usage has moved from Indian IT firms to U.S. tech companies.
• The old model—large batches of entry-level H-1B hires by outsourcing firms—has faded.
• Today’s petitions are more likely to focus on specialized profiles with direct impact on revenue or security.
• Remote work and digital platforms have reduced the need for relocation but have not eliminated the demand for top-tier skills.

Compliance remains critical: whether the sponsor is an Indian IT firm or a U.S. tech giant, a specialty occupation must require a specific bachelor’s degree or higher, pay must meet legal standards, and paperwork should clearly show the role-degree match. See USCIS H-1B program and Form I-129 for authoritative guidance.

NFAP data tell a story about how companies react to policy pressure and how workers adjust their plans. They show that remote work and tech change can reduce the need for visas without slowing delivery, and that U.S. companies continue to rely on the global talent pool to build the next wave of products and platforms. With Indian IT firms stepping back and U.S. tech firms stepping up, H-1B visas are being used in new ways—fewer broad deployments and more targeted hires—which may define the program’s near future.