TCS Halts New H-1B Hiring in Strategic Shift to Local US Talent

Tata Consultancy Services (TCS) will stop hiring new H-1B visa workers this fiscal year. CEO K. Krithivasan confirmed the major policy shift. The move signals a strategic pivot toward local talent acquisition in the United States.

This decision comes amid a tightening visa landscape and shifting demands in the IT services sector. According to Reuters, the company is focusing on building a more localized workforce to better serve its clients.

TCS Implements Major H-1B Visa Policy Overhaul

The new hiring policy represents a significant change for one of the program’s largest users. TCS employs between 32,000 and 33,000 people in the United States. Approximately 11,000 of these workers are currently on H-1B visas.

The company will now employ fewer people than the number of H-1B approvals it receives annually. CEO Krithivasan clarified that L-1 visas will not replace H-1B roles. He stated these visas serve very specific and different purposes.

This shift occurs during a period of low demand for traditional IT services. Customer spending remains cautious, impacting growth. TCS recently reduced its overall workforce by two percent.

Navigating US Scrutiny and Market Realities

The policy change follows direct questioning from US Senators Chuck Grassley and Dick Durbin. The senators had inquired about the firm’s employment of over 5,500 H-1B workers. Krithivasan addressed these concerns directly in recent interviews.

He explained that the high figure included visa modifications and extensions. Fresh H-1B applications were significantly lower, around 2,500. The CEO viewed the senators’ questions as an opportunity to clarify the company’s position.

Krithivasan emphasized the declining reliance on visa-based staffing. He noted that in FY26, TCS sent only 500 employees from India to the US on H-1B visas. This demonstrates the company’s ability to operate effectively with reduced dependency on the program.

The strategic halt on new H-1B hiring underscores a broader industry transformation. TCS is fundamentally reshaping its American talent strategy for a new era. This decisive move positions the company for sustainable growth in an evolving market.

Thought you’d like to know

Why is TCS stopping new H-1B hires?

The company is shifting its strategy to hire more talent locally within the United States. This change responds to market conditions and a need for different skill sets, including those required for AI projects.

How many TCS workers in the US are on H-1B visas?

Approximately 11,000 of TCS’s 32,000-33,000 US employees currently work on H-1B visas. The company is a major beneficiary of the program, receiving over 5,000 visas in 2025 alone.

What does this mean for the IT services industry?

This signals a broader trend of localizing workforces and reducing dependency on visa programs. Other firms may follow suit as client demands evolve and the regulatory environment changes.

Was this decision influenced by US politicians?

US Senators had previously questioned TCS’s high use of H-1B visas. The CEO stated this provided a chance to clarify the company’s position, but the strategic shift was already underway.

Will TCS use other visas like L-1 instead?

No. CEO Krithivasan specifically stated that L-1 visas will not be used to replace H-1B roles. He emphasized that L-1 visas have very specific and limited use cases.

Trusted Sources

Reuters, The Times of India, Business Standard.