India’s Tech Titans Help Cover $100,000 H-1B Bill for TCS

Employer obligation first: pay the required wage and file a truthful LCA

For FY 2027 H-1B cases, the employer’s core legal duty is compliance with the Labor Condition Application (LCA). The LCA locks in the worksite location, job role, and wage. It also triggers posting and recordkeeping rules. If the employer misses these items, the case can fail. The employer can also face back wages, fines, and debarment.

This compliance baseline matters even more as India’s tech titans react to the $100, 000 H-1B bill. The fee took effect for certain petitions filed after September 21, 2025. Large Indian IT firms, including TCS, Infosys, Wipro, and HCL, can often absorb it. Many smaller vendors cannot. That cost pressure is changing hiring models, transfer patterns, and onsite staffing plans.

⚠️ Employer Alert: The LCA wage obligation is enforceable by the Department of Labor. Paying below the required wage can trigger back pay liability and civil penalties.

The $100,000 fee: what it is, and why employers should care

The $100,000 H-1B fee applies only in a narrow scenario. It affects H-1B petitions for foreign nationals abroad that require consular processing. It does not apply to many common employer filings. Examples include extensions for workers already in the U.S. It also excludes many change of status filings, such as F-1 to H-1B. It also excludes cases for H-4 EAD holders moving into H-1B from within the U.S.

For employers, the practical impact is planning. If a candidate is abroad, the fee can dominate the business case. If the candidate is in the U.S. and eligible for change of status, the fee may not apply. That difference can change recruiting decisions, transfer timing, and project staffing.

Why tier-1 Indian IT firms can absorb the cost

For major outsourcers, the fee is large but manageable. Estimated annual cost impact is $100 million to $250 million. That equals about 1% of sector revenue. Analysts estimate a margin hit of about 100 basis points.

Tier-1 firms also carry stronger profitability than many global peers. Reported EBITA margins are about 19% to 26%, versus 10% to 17% for global peers. Cash reserves also cushion the shock. As of December 2025, TCS held about $7 billion in cash. Infosys held about $4 billion.

Smaller employers should not assume the same resilience. If the fee applies, it can exceed the first-year salary cost for some roles. That can affect staffing, pricing, and client contracts.

H-1B dependency: the tech sector and India dominate approvals

The computer-related technology sector accounts for nearly 70% of all H-1B visas issued over the past five years. Indian nationals have also been the largest group in the program. Since 2020, Indians account for nearly 75% of all H-1B visa approvals.

Large employers drive a meaningful share of approvals. TCS received 5,505 H-1B approvals in 2025, making it the second-largest beneficiary after Amazon. That volume matters for compliance teams. It also matters for vendors and subcontractors. USCIS continues to scrutinize third-party placements and specialty occupation alignment.

Onsite services are already shrinking, even before the new fee

Many India-based services firms have already reduced onsite dependency. Onsite U.S. services now represent about 9.3% of operations, down from 17.2%. Onsite services are also a smaller part of India’s export profile. They are about 10% of India’s $205 billion software-services exports, down from 17% in 2017.

For U.S. employers and end-clients, this trend often means more remote delivery. It can also mean more local U.S. hiring. It can also mean greater use of near-shore teams.

AI investment is also an immigration strategy

Many large firms are treating automation as a long-term staffing hedge. TCS has announced plans to invest $6 to $7 billion to build one gigawatt of data-center capacity. The stated goal is broader AI capacity, including generative AI. That includes coding, testing, and maintenance tasks.

For employers, the compliance point is job design. If duties change because of automation, the employer must still support that the role remains a specialty occupation. The job must require specialized knowledge and a relevant degree. Vague “AI support” titles with broad tasks often draw RFEs.

Smaller and mid-tier firms face real risk

Smaller vendors often have thinner margins and smaller cash buffers. The $100,000 fee can force tough choices. Some may reduce H-1B usage. Some may shift toward near-shoring. Others may pursue more local U.S. hiring. Consolidation may accelerate as larger firms buy niche providers.

For U.S. employers using staffing vendors, due diligence becomes more important. End-clients should confirm who is the H-1B employer. They should confirm who controls day-to-day work. They should also confirm whether the role is correctly classified on the LCA.

FY 2027 cap timeline employers should build into project plans

FY 2027 refers to employment that typically starts October 1, 2026. Cap cases begin with electronic registration.

📅 Key Date: Plan backward from October 1, 2026. Most cap-subject workers cannot start earlier, even with approval.

Step-by-step: how to sponsor an H-1B worker (cap-subject)

Step 1: Confirm specialty occupation and degree match. The role must require a specific bachelor’s degree or higher. Job duties must support that requirement. Avoid overly broad duty lists.

Step 2: Set the worksite strategy early. Worksite drives prevailing wage and posting. Hybrid work must still tie to a clear location.

Step 3: Determine the prevailing wage and wage level. Use the correct SOC code and area. The employer must pay the higher of prevailing wage or actual wage. Wage levels range from Level I (entry) to Level IV (expert). Level I roles face more USCIS scrutiny.

Step 4: File the LCA with DOL. The LCA confirms wage, location, and conditions. It also triggers posting requirements.

Step 5: Complete H-1B registration in March. Registration is employer-submitted. Selection is beneficiary-centric, meaning one entry per person, even with multiple sponsors.

Step 6: Prepare and file Form I-129 after selection. File during the April to June window. Include the certified LCA and all supporting evidence.

Step 7: Decide change of status versus consular processing. If the worker is abroad, consular processing applies and may trigger the $100,000 fee. If the worker is in the U.S., change of status may avoid it.

Step 8: Start date and onboarding controls. For cap cases, start is typically October 1, 2026. Track I-9 rules and public access file completion.

LCA requirements employers must follow

Prevailing wage and actual wage. The offered wage must meet the prevailing wage for the SOC and location. It must also match internal pay equity for similar roles.

Working conditions. H-1B workers must receive working conditions that do not adversely affect U.S. workers in similar roles.

Posting notice. The employer must post notices at the worksite or provide electronic notice. Posting must be timely and documented.

Public Access File (PAF). Maintain the PAF with the LCA, wage documentation, and posting proof. This file must be available for public inspection.

Required documentation checklist (employer and employee)

Employer documents – Detailed job description and minimum requirements – Worksite addresses and hybrid policy – SOC code rationale and wage level selection – Offer letter with salary, hours, and start date – Organizational chart and manager letters – Client letter and SOW, if third-party placement applies – LCA posting evidence and PAF contents

Employee documents – Passport ID page and immigration history – Degree certificates and transcripts – Credential evaluation, if degree is foreign – Updated resume and experience letters – Prior I-797 approvals and I-94, if in the U.S. – If consular: prior visa stamps and refusal history, if any

Fee breakdown and who must pay

The employer must pay required H-1B program fees. Passing required fees to the worker can create DOL violations.

The $100,000 fee is a separate policy item with limited scope. Employers should confirm applicability before filing.

Common compliance violations and penalties

Typical problems include underpaying the required wage, failing to post, and moving workers without an amended filing. Bench time issues also appear when workers lack assigned work.

USCIS also focuses on specialty occupation gaps. These include generic duties, weak degree requirements, and unclear end-client control. Third-party cases need clear evidence of non-speculative work.

⚠️ Employer Alert: Worksite changes can require an amended petition. Treat moves, long remote assignments, and client rotations as compliance events.

Premium processing and practical timing

Premium processing is available for Form I-129. It can speed the USCIS decision clock. It does not change the cap start date. It also does not guarantee visa stamping speed.

For consular cases, add time for scheduling and administrative processing risk. Employers should avoid project start commitments that depend on a specific interview date.

⏰ Deadline: For cap cases, file the full petition during the April 1 to June 30, 2026 window after selection.

Action plan employers and employees should follow now

Employers (next 30–60 days) – Confirm which roles are true specialty occupations with degree alignment. – Start prevailing wage and LCA planning by location and SOC code. – Identify candidates abroad versus in the U.S. for fee and timing planning. – Review vendor and end-client documentation for third-party placements.

Employees – Confirm the job title, SOC code, and worksite location match your actual role. – Verify the offered wage meets at least the prevailing wage for that location. – If you are abroad, ask whether the $100,000 fee applies to your filing path. – Track FY 2027 timing and avoid travel that conflicts with filing windows.

Key upcoming dates – Early-to-mid March 2026: H-1B registration period for FY 2027 – Late March/early April 2026: likely selection notices – April 1 to June 30, 2026: petition filing window – October 1, 2026: earliest cap start date

📋 Official Resources: – H-1B Program: uscis.gov/h-1b-specialty-occupations – Cap Season: uscis.gov/h-1b-cap-season – Prevailing Wages: flcdatacenter.com