US Senators Question TCS in Ongoing H-1B Visa Debate

Two senior US Senators have confronted Tata Consultancy Services (TCS) about its US hiring practices. Senators Charles Grassley and Richard Durbin sent a formal letter to the CEO on September 24. They demand answers regarding simultaneous American staff layoffs and H-1B visa filings.

The lawmakers question the integrity of the company’s employment strategy. This action highlights ongoing scrutiny of the H-1B visa program’s use by major IT firms. According to Reuters, such inquiries often precede broader policy discussions.

Senators Detail Contradictions in TCS Employment Strategy

The letter points to specific layoffs at a TCS office in Jacksonville. Dozens of American employees lost their jobs there. Meanwhile, the company was approved to hire 5,505 H-1B workers in FY 2025.

This made TCS the second-largest employer of new H-1B beneficiaries. The senators expressed deep skepticism about the need for foreign workers. They stated it is hard to believe TCS cannot find qualified American tech talent.

Nine Key Questions Target Hiring and Pay Practices

The senators posed nine detailed questions with an October 10 deadline. They want to know if TCS made a good faith effort to hire Americans first. Another question asks if American workers were directly displaced by H-1B hires.

The inquiry also probes potential pay disparities. Senators asked if H-1B employees receive the same wages and benefits as equivalent American staff. They are also investigating if TCS uses outsourcing to obscure its H-1B hiring numbers.

Broader US Policy Shift Intensifies Scrutiny

This confrontation occurs amid a significant US policy change on skilled visas. President Donald Trump recently signed a proclamation raising the H-1B visa fee. The new fee will be $100,000, a massive increase from the current $2,000-$5,000 range.

This new fee structure takes effect in Fiscal Year 2027. Analysis from financial services firms suggests this will pressure IT companies. Firms may shift more work offshore or increase local US hiring to manage costs.

The senators’ investigation into TCS signals a tougher stance on H-1B visa use. Its outcome could force major changes in how IT giants staff their US operations. The entire tech services industry is watching this development closely.

Thought you’d like to know

What is an H-1B visa?

It is a US visa that allows companies to employ foreign workers in specialty occupations. These roles typically require theoretical or technical expertise in specialized fields.

Why are US senators questioning TCS?

They are investigating why TCS is laying off American employees while simultaneously hiring thousands of workers on H-1B visas. The core concern is whether American workers are being unfairly displaced.

How many H-1B workers did TCS recently hire?

Data cited by the senators shows TCS received approval for 5,505 H-1B workers in Fiscal Year 2025. This made the company the second-largest employer of new H-1B beneficiaries in the US.

What is the new H-1B visa fee?

A recent proclamation raised the H-1B visa fee to $100,000 for new applications. This is a substantial increase from the current fee range of $2,000 to $5,000.

When must TCS respond to the senators?

The company has been given a deadline of October 10 to respond to the nine questions. The responses require supporting data and documentation.