TCS Halts New H-1B Sponsorship in U.S., Expands Local Hiring Push

Tata Consultancy Services will stop hiring new H-1B visa applicants for its U.S. operations and shift toward local hiring, CEO K. Krithivasan said in a 2025 policy change that could ripple across the tech and consulting sectors. The company, a longtime heavy user of the H-1B program, will still consider renewals for existing visa holders on a case-by-case basis but will not sponsor new H-1B petitions for fresh recruits in the United States 🇺🇸.

The move follows years of large-scale H-1B usage—TCS hired 98,259 H-1B applicants between 2009 and 2025, including 5,505 in 2025 alone—yet now says its U.S. workforce is “significantly localized.”

Krithivasan framed the decision as a business shift rather than a short-term pause. “We have enough people on H-1 already in the U.S. I don’t think we would be looking to add to that count anytime now,” he said, adding that TCS will increase local participation across geographies, especially in the U.S. and Europe.

The company clarified that renewals for current workers may continue, but decisions will be made individually. New sponsorships are off the table.

Regulatory and cost context

The change follows new regulatory pressure and rising costs surrounding the H-1B category. According to the company’s assessment, recent U.S. measures have raised the bar for employers.

• A prominent factor is the $100,000 annual fee for new H-1B petitions, effective September 21, 2025.
• Under the Trump administration, increased scrutiny of eligibility and employer practices has created a tougher environment for mass visa sponsorships.

For background on the H-1B category and employer rules, readers can review the USCIS page on H-1B specialty occupations and employer obligations via the official site at USCIS H-1B.

TCS’s H-1B footprint and localization

• As of September 2025, TCS had been allocated about 5,505 visas for the year, second only to Amazon.
• Yet the company now says only about 500 of its U.S. employees are currently on H-1B visas, reflecting a sharp reduction in reliance.

VisaVerge.com reports that TCS’s “significantly localized” model in the U.S. is part of a broader plan to align team structures with client needs and regulatory conditions.

Policy shift and business rationale

Krithivasan outlined four main reasons for the move to local hiring:

1. Client collaboration
   • Projects in AI, cloud, and data require close, real-time work with customers.
   • Proximity and domain context can outweigh pure coding output.
2. Cultural fit and responsiveness
   • Local teams may handle nuanced communication, industry norms, and on-site needs more smoothly.
3. Visa constraints
   • Caps, scrutiny, and higher costs—including the new fee for new H-1B petitions—make long-term planning harder if a company depends on a steady visa pipeline.
4. Global consistency
   • In Latin America, the Middle East, and Asia-Pacific, TCS already runs with a high share of local associates.
   • Extending that model in the U.S. supports a uniform delivery approach.

He also noted that upcoming AI-heavy engagements will demand “a much more diverse skillset, compared to pure engineering or technology skills alone,” strengthening the case for a deeper local bench.

Impact on workers, clients, and rivals

For current H-1B employees at TCS

• Renewals remain possible but not guaranteed; each request will be weighed individually.
• TCS says the new U.S. fee applies only to new applicants, not to renewals or returning visa holders.
• Still, workers should plan early for extensions and assignments.

Employers file H-1B changes and extensions through Form I-129 (Petition for a Nonimmigrant Worker); official instructions are available on the USCIS site at Form I-129.

For prospective hires

• Indian professionals who long saw TCS as a major sponsor now face a tighter path into U.S. onshore roles.
• With new H-1B sponsorships halted, candidates may see more offshore assignments or be steered toward local roles in their home markets or third-country hubs.
• Some industry watchers expect a partial shift to L-1 intra-company transfers, though others warn that this may simply move pressure to another visa stream.

For U.S. clients

• The change may bring a steadier onshore presence, faster response times, and a team mix that mirrors local market expectations.
• That could reduce friction on complex, regulated projects in banking, healthcare, and the public sector.
• Account leaders may gain more control over staffing during peak cycles since onshore availability is less tied to cap filings, lotteries, or consular backlogs.

For competitors and the labor market

• Competitors face a strategic choice: follow TCS toward local hiring or keep leaning on the H-1B pipeline.
• An industry analyst noted, “it is just a matter of time before others follow suit.”
• If several large firms pivot at once:
  • Demand for local talent could spike, driving up wages in certain metro areas.
  • Mid-sized consultancies might respond with niche hiring, apprenticeships, or partnerships with community colleges to expand the pool of job-ready workers.

Policy debate and broader implications

Policy debates in the United States 🇺🇸 will likely draw on this shift.

Supporters of tighter H-1B controls may cite the TCS move as proof that major firms can reduce reliance without harming delivery. Critics may argue that blanket costs and stricter rules risk undermining U.S. competitiveness if employers can’t fill advanced roles fast enough.

Either way, the announcement adds fuel to ongoing talks about skilled visas, outsourcing, and local job growth.

Practical steps for affected parties

For workers and managers, three practical steps stand out:

1. Current H-1B staff should:
   • Track expiration dates early.
   • Coordinate with HR on extension timing.
   • Keep project documentation updated to support extension filings.
2. Hiring managers should:
   • Build local pipelines, including campus programs, return-to-work tracks, and mid-career reskilling.
3. Project leaders should:
   • Plan blended teams, using onshore leads and offshore support to handle workload shifts during the transition.

Company positioning and outlook

Tata Consultancy Services stresses that this is not a retrenchment from the U.S. market but a recalibration of how teams are built and delivered. The company says it wants to reduce exposure to policy swings while getting closer to clients on high-stakes, AI-driven work.

That view aligns with its global pattern of high local participation outside the U.S., and signals that more global firms may rethink the balance between visa-dependent staffing and homegrown hiring.

As policy and market forces evolve, one thing is clear: the H-1B share at TCS will not grow in the near term. The company’s bet is that local hiring will bring steadier projects, tighter client ties, and less immigration risk—while renewals maintain continuity for key H-1B staff already onshore. Whether others copy this playbook will shape the next chapter of tech consulting labor in the United States.