H-1B Approvals for Indian Firms Fall 37% in FY2025 to 4,573

(UNITED STATES) Approvals of H-1B visas for Indian companies have plunged in FY 2025, with the top seven Indian IT employers securing just 4,573 approvals for initial employment, a sharp fall that is reshaping the technology labor market in the United States. The drop, which federal data show amounts to a 37% decline compared with FY 2024 and a 70% collapse from FY 2015 levels, signals that Indian outsourcing giants are no longer the main engine of demand for high-skilled work visas in the American tech sector.

Concentration shift among sponsors

While Indian companies once dominated the program, with thousands of workers on client sites across the country, FY 2025 looks very different. Only three India-based firms — Tata Consultancy Services, LTIMindtree, and HCL America — remain in the top 25 sponsors of new H-1B visas. Together they gained just 1,626 approvals for initial employment this fiscal year, far below the numbers that made them central players in corporate IT departments a decade ago.

• Tata Consultancy Services: 846 approvals
• LTIMindtree: 401 approvals
• HCL America: 379 approvals

According to analysis by VisaVerge.com, the seven largest Indian IT employers combined are now securing fewer fresh visas than a single American tech giant such as Amazon.

US tech firms now dominate

US tech companies increasingly dominate H-1B sponsorship for initial employment in FY 2025. Notable approvals:

• Amazon: 4,644 new approvals
• Meta: 1,555 approvals
• Microsoft: 1,394 approvals
• Google: 1,050 approvals

This pattern shows American corporations bringing foreign professionals directly onto their own payrolls rather than using offshore outsourcing vendors.

Key takeaway: American companies are increasingly using the H-1B program to hire international talent directly, reducing reliance on traditional Indian outsourcing models.

Reasons behind the decline for Indian firms

Industry analysts cite several drivers of the steep fall in H-1B approvals for Indian IT providers:

• Expansion of local hiring in the United States, including delivery centers in smaller cities and more American employees on long-term projects.
• Increased adoption of remote work, enabling development and support tasks to be done from abroad without temporary US placements.
• Near-shoring and geographic diversification: Indian employers have built hubs in countries such as Mexico, Canada, and parts of Eastern Europe to place teams closer to North American clients.
• Rising visa costs and ongoing political debate around immigration, making alternatives to the H-1B route more attractive.

Important context on denial rates

Although the overall denial rate for H-1B applications in FY 2025 was relatively low at 2.8%, Indian IT providers faced higher rejection rates than big American sponsors. Federal figures cited by consultants show American tech companies kept denial levels below 1%, adding pressure on outsourcing firms that still depend on H-1B visas to staff client sites.

Impact on workers and clients

For foreign workers hoping to use H-1B visas sponsored by Indian companies, opportunities are now more limited than a decade ago.

• A decade ago, large outsourcing firms offered thousands of young engineers from India an entry path to the US.
• Now, most initial employment slots go to hires of major US tech platforms and other domestic employers.
• Workers face fewer chances; positions that remain are typically for roles that require presence in the United States or specific skills.

Clients that relied on rotating consultant teams from Indian providers are also experiencing changes:

• More foreign workers are now directly employed by US-based employers, which can:
  • Change contract structures
  • Alter pay scales and career progression expectations
  • Provide more stability for some clients, but reduce flexibility to scale quickly via third-party staffing

Policy developments and future risk

A proposed $100,000 fee for new H-1B entrants, scheduled to take effect on September 21, 2025, could further reshape the market. If implemented, this fee would:

• Hit high-volume sponsors hardest
• Make the traditional model of filing thousands of petitions far more costly
• Likely accelerate the shift toward remote and offshore delivery instead of on-site placements in the United States

Legal framework and shifting usage

Official information from U.S. Citizenship and Immigration Services explains that the H-1B category is meant for specialty occupations that normally require at least a bachelor’s degree. The rules remain the same, but the majority users of the program are changing:

• American companies are treating the program as a strategic tool to secure long-term international talent.
• Many Indian firms now view H-1B as a selective option, reserved for roles that truly require US presence.

Broader implications and outlook

For engineers in India, the FY 2025 reality is a more constrained path to the US via Indian outsourcing firms. Opportunities still exist, but they are:

• Fewer in number
• Often tied to highly specific skills or close coordination needs with American teams

Many engineers are now considering alternatives such as Canada or other regions rather than relying on the H-1B route.

Overall, the decline in approvals for Indian companies suggests the traditional onsite-offshore model that shaped global IT is shifting toward a more fragmented system of near-shore, remote, and direct-hire approaches. This transition will continue to influence hiring practices, contract models, and career paths for global tech talent.