TCS CEO: No New H-1B Hires in the USA; Local Hiring

(USA) Tata Consultancy Services will stop hiring new H-1B visa applicants in the United States 🇺🇸 and grow its workforce from the domestic labor market, CEO K. Krithivasan said, marking a sharp shift for one of the top users of the visa in the tech sector. The decision comes after months of political pressure, rising compliance costs, and tighter rules that have reshaped how global IT firms plan staffing for U.S. client projects.

TCS was the second-largest recipient of H-1B approvals in fiscal year 2025, with 5,505 approvals, drawing scrutiny from lawmakers who questioned the firm’s reliance on visa holders while reducing some U.S.-based roles. Senators pressed the company on this point, underscoring the concern that large technology service providers were filing high volumes of H-1B petitions even as they adjusted domestic headcount. According to analysis by VisaVerge.com, that attention pushed companies to recalibrate hiring strategies, especially for onshore delivery teams.

The company now plans to fill roles with local American manpower, a phrase the CEO used to describe the growing share of U.S. citizens and permanent residents in future hiring. While TCS will still serve American clients, the message was clear: no new H-1B hires in the U.S. This move may slow the pace at which the company transfers staff from overseas, while increasing demand for workers already authorized to work in the country.

Policy and cost pressures reshape hiring choices

The policy environment has been especially tough for employers that depend on temporary work visas. Under President Trump, federal officials advanced stricter H-1B policies, including a proposed $100,000 fee for new H-1B petitions and tighter eligibility rules designed to protect U.S. wages and jobs. Companies have faced more paperwork, higher costs, and closer review of job duties, wage levels, and worksite details.

A presidential proclamation issued in September 2025 further restricted the entry of certain nonimmigrant workers on H-1B visas. For global IT firms that often rotate specialists to meet client needs, those limits added more uncertainty to project staffing and travel timelines. As a result, firms like TCS reassessed where and how to build delivery capacity, with greater emphasis on recruiting and training workers already in the United States 🇺🇸.

For employers, the H-1B process centers on filing Form I-129, Petition for a Nonimmigrant Worker, along with detailed evidence of the job’s specialty nature and the candidate’s qualifications. Companies that still plan to sponsor H-1B talent can review official rules and timelines in the USCIS H-1B guidance linked below. If they proceed, the petition itself is filed on Form I-129, which the employer signs and submits to U.S. Citizenship and Immigration Services.

Key official resources:
– USCIS H-1B guidance: https://www.uscis.gov/working-in-the-united-states/temporary-workers/h-1b-specialty-occupations-dod-cooperative-research-and-development-project-workers-and-fashion-models
– Form I-129 information: https://www.uscis.gov/i-129

These filings carry fees, potential site visits, and strict wage compliance — factors many firms now weigh heavily in staffing plans.

Lawmaker scrutiny and industry ripple effects

TCS’s change follows months of sharp questions from senators about the firm’s petition volume and workforce mix. Lawmakers pointed to an apparent mismatch between layoffs of U.S. workers in some teams and continued requests for large numbers of foreign professionals.

TCS argued client needs often require niche skills and that workers rotate across projects. Still, the politics have shifted. With higher proposed fees, added compliance, and entry restrictions for some H-1B categories, the risk calculus for companies has changed too.

Impact on international workers and students

For international workers, the decision lands hard. Many students and early-career professionals counted on large IT firms as reliable H-1B sponsors. Without new TCS H-1B hiring, competition may intensify at other firms that continue to sponsor.

Possible routes for affected candidates:
– Seek roles with employers in non-consulting sectors that still sponsor visas.
– Look for remote work with global teams outside the United States 🇺🇸.
– Pursue advanced study while waiting for policy clarity.

Impact on U.S. job seekers and workforce development

For U.S. job seekers, the pivot to local hiring could open doors, especially in roles tied to:
– application maintenance
– cloud support
– testing
– business analysis

TCS will still need to meet client delivery timelines, which likely means more:
– training programs
– apprenticeships
– partnerships with community colleges and universities

The company has used such models before and may expand them to meet demand without leaning on new H-1B petitions.

Broader industry responses

The broader industry will watch closely. If one of the largest users of the visa steps back, peers may follow. Potential strategic shifts include:
– Prioritizing green card sponsorship for existing staff over new H-1B filings
– Shifting more work to nearshore and offshore centers
– Reserving H-1B petitions for highly specialized roles where local hiring is difficult

Either way, the mix of onsite and offshore delivery is likely to keep changing.

Effects on clients, current employees, and project timelines

For clients — banks, insurers, retailers, and manufacturers — project staffing may take longer during transition periods. Companies may need to:
– plan more lead time for ramp-ups
– accept more hybrid delivery models
– rely on smaller onsite core teams and larger remote units

Cost models could shift if wage rules push employers to raise pay for certain skill sets onshore.

Workers already on H-1B at TCS are not automatically affected by the announcement. The statement focused on “new” applicants in the U.S., not current visa holders. Existing employees may continue on approved petitions and extensions, subject to normal rules.

Still, many will seek clarity on:
– transfers between projects
– travel plans
– long-term immigration options, including permanent residence

Practical points for employers and workers who still engage the H-1B process:
– Stricter eligibility review: Job duties must clearly require a bachelor’s degree in a specific field.
– Higher cost exposure: Proposed and existing fees, plus compliance work, can add up quickly.
– Travel limits: Policy changes, including the September 2025 proclamation, can affect entry timing.

What this means for job-seekers and employers

TCS’s message from K. Krithivasan aligns with a theme seen across the sector: reduce visa risk and grow local teams. The company says it will rely on local American manpower to staff future needs. While that may ease political pressure, it raises questions about how quickly employers can train candidates for roles that once went to seasoned global specialists.

Advice for international students and STEM graduates:
1. Focus on employers with steady H-1B sponsorship records in areas such as product development, healthcare tech, automotive software, and chip design.
2. Build a profile that shows direct, job-ready skills.
3. Keep backup plans, including roles that offer training pathways without immediate visa sponsorship.

Policy remains the wild card. If fee plans change or a future administration adjusts visa rules, companies could revisit hiring models. For now, the TCS H-1B pullback is a clear sign: the cost and risk of sponsorship in the current climate are pushing even the biggest players to hire locally first.