TCS CEO on H-1B Visa: Can the IT Giant Thrive Without It Amid U.S. Crackdown?

TCS CEO K Krithivasan has made a bold statement on the company’s future hiring strategy, announcing that Tata Consultancy Services will not hire any new H-1B visa employees this fiscal year. Instead, the tech giant is shifting its focus toward building a stronger local workforce in the United States.

The announcement comes amid tightening visa regulations and political scrutiny of foreign worker programs. Despite being the second-largest recipient of H-1B visas in 2025 — behind only Amazon — TCS says it is prepared to scale back its dependence on foreign talent and adapt to the changing landscape.

TCS Reduces H-1B Dependence, Focuses on U.S. Local Talent

According to Krithivasan, approximately 11,000 of TCS’s 32,000–33,000 employees in the U.S. are currently on H-1B visas. However, the company will now employ fewer visa-based workers than the number of approvals it receives each year. He clarified that this policy shift is not about replacing H-1B visas with L-1 visas, which have limited use cases, but about transforming the talent model entirely.

“We have 31,000 to 32,000 employees in the U.S., of whom only 11,000 to 12,000 are on H-1B visas, while the rest are on other types of visas,” Krithivasan told Business Standard. “We have been progressively increasing local workforce participation, which will continue as new types of projects and AI require closer collaboration with customers and different skill sets.”

The company has already taken steps to realign its workforce strategy. In FY26, TCS sent only 500 employees from India to the U.S. on H-1B visas — a sharp drop that Krithivasan says proves “we can survive without them.”

Addressing U.S. Political Pressure and Workforce Strategy

TCS’s decision comes after U.S. Senators Chuck Grassley and Dick Durbin raised concerns about the company’s employment of over 5,500 H-1B workers. Krithivasan responded to their queries by explaining that the figure referred to modifications or extensions, while new applications were much lower — likely around 2,500.

He emphasized that H-1B visas are no longer central to TCS’s retention strategy, stating, “There was a time when this was a significant retention policy, but over the past four to five years, it has been on a declining trend. Today, it is far less of a retention tool than it once was.”

The CEO also noted that the company’s evolving project needs, particularly in AI and rapid innovation, make local hiring more attractive. These roles often require close client collaboration, real-time decision-making, and deeper understanding of the U.S. market — skills that are increasingly found in locally sourced talent.

Implications for the IT Industry and Future Outlook

TCS’s shift away from heavy H-1B reliance signals a significant change for the broader IT services sector. The company’s decision could influence how other Indian tech firms approach U.S. hiring amid stricter immigration policies and growing pressure to localize operations.

It also reflects the industry’s adaptation to a new era of digital transformation. As companies demand faster innovation and closer collaboration, onshore talent is becoming increasingly valuable. Krithivasan believes this transition is not just a compliance measure but a strategic evolution that positions TCS for long-term success.

With fewer than 500 new H-1B hires this year and a growing focus on local expertise, TCS is signaling confidence in its ability to thrive without traditional visa dependencies. According to Krithivasan, “There is no reliance on H-1B visas.”

FYI (keeping you in the loop)-

Q1: What did TCS CEO K Krithivasan say about H-1B visas?

He stated that TCS will not hire new H-1B employees this fiscal year and can operate without relying on the visa program.

Q2: How many TCS employees in the U.S. are on H-1B visas?

About 11,000 to 12,000 of TCS’s roughly 32,000 U.S. employees currently hold H-1B visas.

Q3: Why is TCS reducing its dependence on H-1B workers?

The company wants to expand local hiring and adapt to evolving project demands that require close collaboration and innovative skill sets.

Q4: How many employees did TCS send to the U.S. on H-1B visas in FY26?

Only around 500 employees were sent from India to the U.S. on H-1B visas in FY26.

Q5: How did U.S. lawmakers react to TCS’s visa usage?

Senators Chuck Grassley and Dick Durbin raised concerns about TCS’s H-1B employment numbers, prompting clarification from the company.