Is the H-1B squeeze setting the stage for India’s remote-work revolution?

As the US tightens H-1B rules, Indian IT is rethinking its playbook, leaning on remote work, automation, and global capability centres to stay ahead.

author-image
Preeti Anand
New Update
Is the H-1B squeeze setting the stage for India’s remote-work revolution
Listen to this article
0.75x1x1.5x
00:00/ 00:00

The traditional model of sending Indian talent to the United States is under severe strain, with the US government now proposing a fee of USD 100,000 on new H-1B visa applications from 2025. This has made the once-dominant model of on-site deployment unsustainable for many Indian IT majors.

Industry observers note that leading firms such as Tata Consultancy Services (TCS), Infosys, Wipro, and Cognizant are shifting rapidly from H-1B-led sourcing to offshore and remote-first workforce strategies. The sharp increase in visa costs and salary thresholds has created what analysts are calling the H-1B squeeze, compelling Indian IT companies to re-engineer their global operating models and expand their Global Capability Centres (GCCs) beyond India and the US to maintain business continuity and client proximity.

Data-driven visa usage change

As per industry estimates, Infosys, TCS, and Wipro together account for the largest share of H-1B visa holders among Indian IT firms.

Analyst data suggests that revenue exposure from H-1B employees remains significant for these companies, though it has been steadily declining over the past five years.

Collectively, the leading Indian IT firms are expected to cut their H-1B dependency by nearly half as they move towards hybrid and offshore delivery models.

Outsourcing after H-1B changes

For decades, H-1B visas enabled Indian IT professionals to work on-site in the US, forming the backbone of the offshore-onshore model. The latest policy proposals, however, have made this route both expensive and unpredictable. 

NASSCOM has warned that higher visa costs could threaten business continuity by inflating project budgets and prompting clients to renegotiate or delay contracts. As a response, Indian IT firms are doubling down on offshore delivery and remote-working models, executing more project work from India and other near-shore hubs. The overall shift points to a leaner on-site presence and greater reliance on cost-efficient, remote-heavy implementation.

TCS vs Infosys: the H-1B impact

According to analyst commentary, Infosys continues to have a relatively higher share of its workforce on H-1B visas, making it more sensitive to fee increases. The company is reportedly increasing its India-based workforce and investing in local hiring in the US to balance costs.

TCS, in contrast, is considered less dependent on H-1B visa holders due to its early focus on distributed global delivery and robust near-shore setups. Its existing offshore-first model allows it to absorb visa-related shocks with minimal disruption.

In essence, companies that have greater reliance on visa-based deployment  will  see greater impact of policy changes.

H-1B visa India impact and industry response

While the short-term impact may include cost pressures and revenue risks, industry leaders view the disruption as an opportunity to redesign their global operating architecture. Indian IT companies are expanding their GCC networks across Europe, Latin America, and the Asia-Pacific region, bringing delivery closer to clients while reducing exposure to restrictive visa policies.

They are also expected to step up local hiring in the US, investing in automation and AI-driven productivity, and strengthening offshore collaboration platforms. Analysts also point to a likely reverse brain drain, with more skilled Indian professionals choosing to work from India or return from overseas, given the growing attractiveness of domestic tech opportunities.

The H-1B changes: Strategy for professionals

The 2025 visa-fee hike and new rules have major implications for Indian IT professionals and aspiring global workers:

  • Fewer on-site jobs, more remote work: With H-1B visas becoming costlier and scarcer, companies are prioritising remote-first roles, allowing employees to contribute from India or other global locations rather than relocate to the US.
  • Upskill to stay competitive: Professionals must strengthen their expertise in high-demand areas such as cloud computing, Artificial Intelligence (AI), cybersecurity, and digital collaboration, enabling them to remain valuable in hybrid and remote setups.
  • Look beyond the US: As H-1B access tightens, countries such as Canada, the UK, and Australia are emerging as attractive destinations with clearer residency pathways and strong demand for skilled tech talent.

Up ahead​

The H-1B squeeze has disrupted the long-standing model of talent mobility that defined India’s IT success story, accelerating the rise of a remote-first, GCC-driven ecosystem. The coming decade will test how effectively Indian firms can scale offshore delivery, embed emerging technologies, and sustain seamless global collaboration without relying on traditional visa routes.

In this post-H-1B era, remote work and globally distributed GCCs are no longer the exception , they are the new normal.