In a major strategic shift, Tata Consultancy Services (TCS) has announced that it will not be hiring any new H-1B visa applicants for now. CEO K. Krithivasan, in a recent interview, said the company plans to focus on expanding its local workforce in the US and Europe instead.
TCS has long been one of the largest H-1B employers in the United States, with over 98,000 H-1B hires between 2009 and 2025, including 5,505 applicants in 2025 alone — more than Microsoft, Apple, Google, and Meta.
“We have enough people on H-1 already in the US. I don’t think we would be looking for adding to that count anytime now,” Krithivasan said.
He clarified that the company’s goal has always been to rotate employees on overseas assignments and eventually bring them back. “We are looking to increase our local participation,” he added.
Focus on Local Hiring and AI-Driven Roles
Krithivasan emphasized that new AI-based engagements require closer collaboration with clients and diverse skills beyond traditional engineering. This is prompting the company to prioritize hiring local talent across its major geographies — including Latin America, the Middle East, and the Asia-Pacific region.
He noted that the company already operates with a high percentage of local associates in several of these regions, a trend that will now extend to the US and Europe.
Industry Implications
Industry observers believe this move could lead to a decline in new H-1B applications across the IT sector. Many expect other tech giants such as Amazon, Cognizant, and Microsoft to follow suit.
M. Dinesh, a Hyderabad-based consultancy manager, said,
“With TCS stepping back from new H-1B hires, others will soon shift towards the L-1 visa route, which allows intra-company transfers from India to the US. It’s more cost-effective and flexible than sponsoring new H-1B visas.”
This marks a significant change in how Indian IT firms approach global workforce mobility, as they move from visa-dependent models toward localized and skill-diverse teams aligned with next-gen technologies like AI and cloud computing.
