Chart beat: Indian IT firms’ exposure to H-1B visas at a multi-year low

Infosys Ltd and Mphasis Ltd remain the most vulnerable to any further tightening of visa norms. Photo: Reuters
Infosys Ltd and Mphasis Ltd remain the most vulnerable to any further tightening of visa norms. Photo: Reuters

Summary

  • The drop in IT workers with H-1B visas is due to increased hiring in the US by Indian IT companies and the trend of increased offshoring.

In the run up to the 2024 US presidential elections, discussions on immigration policies and their potential impact on the Indian IT sector are likely to resurface, especially as Donald Trump is one of the candidates. An analysis by BNP Paribas Securities shows the top five Indian IT companies have significantly cut their exposure to H-1B visas since Trump's first term as president in 2016.

The drop in workers with H-1B visas is due to increased hiring in the US by Indian IT companies, with 37,000 US nationals hired directly over 2017-21, going by BNP's estimates. The trend of increased offshoring, which accelerated after the covid-19 pandemic, has also helped here.

As things stand, this risk is much lower than it was ahead of Trump's first presidency term. However, there could still be some casualties. Infosys Ltd and Mphasis Ltd remain the most vulnerable to any further tightening of visa norms. Their H-1B approvals as percentage of total employees stand at 2.4% and 2.3%, respectively versus 0.3-2.2% for their peers, the report added.

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