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The report warns that any tightening of immigration regulations or increase in visa-related costs could significantly impact these firms, which rely on foreign talent to sustain their US operations.
A report by Moody's has highlighted the vulnerability of major Indian IT firms to changes in US immigration policies under President Donald Trump's administration. With Indian professionals securing nearly 75% of H-1B visas issued in 2023, companies such as Infosys, Tata Consultancy Services (TCS), and Hexaware Technologies remain highly dependent on skilled workers for long-term assignments in the United States.
The report warns that any tightening of immigration regulations or increase in visa-related costs could significantly impact these firms, which rely on foreign talent to sustain their US operations. However, Moody's notes that industry leaders like TCS and Infosys are better positioned to absorb rising costs due to their strong profit margins.
"Although business service providers are not directly affected by tariffs, they remain susceptible to shifts in US immigration policies. Stricter regulations could shrink the labor pool and create challenges for companies relying on foreign talent. To mitigate disruptions, firms such as TCS, Infosys, and Hexaware Technologies have been ramping up local hiring in the US," the report said.
Data from the US Citizenship and Immigration Services (USCIS) for April-September 2024 showed that Indian-origin companies secured about 24,766 of the total 130,000 H-1B visas issued during the period. Among them, Infosys led the way with 8,140 visa approvals, followed by TCS with 5,274, and HCL America with 2,953.
The H-1B visa program allows US companies to hire foreign professionals for specialized roles on a temporary basis. Indian IT firms have consistently been among the largest beneficiaries of this scheme, enabling them to maintain a strong presence in the American market.
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