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Impact of Reduced H-1B Visas on Indian IT Job Prospects

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The reduction in H-1B visas has dropped by 56% over the past eight years due to stricter US regulations. This shift impacts job prospects significantly. Learn more.

The H-1B visa program has long been a crucial pathway for Indian IT professionals seeking opportunities in the United States. However, recent years have seen a significant decline in the reliance of Indian IT companies on H-1B visas, dropping by 56% over the past eight years. This shift is expected to have several implications for job prospects in the IT sector.

Reasons for the Decline

The reduction in H-1B visa reliance stems from stricter visa issuance norms and heightened compliance requirements. The US administration has narrowed the definition of "specialty occupation," making it more challenging for companies to prove the necessity of hiring foreign workers. Additionally, there have been increased scrutiny and enforcement measures, including worksite inspections and monitoring compliance before, during, and after visa approval.

Increased Onshore Hiring

As a result of these changes, Indian IT companies are ramping up their onshore hiring in the US. This shift is driven by the need to comply with new regulations and reduce dependency on H-1B visas. However, onshore hiring comes with higher wage bills and can lead to lower profit margins for these companies. The higher costs associated with employing local talent or existing H-1B workers may compel companies to adjust their cost structures and explore automation to mitigate the financial impact.

Impact on Job Prospects in India

For individuals in India aspiring for IT careers, the reduction in H-1B visas and onsite opportunities could mean fewer chances of working in the US. Traditionally, securing an H-1B visa and gaining international experience has been a significant career boost. With these opportunities diminishing, the focus will likely shift to domestic roles and career growth within India.

Domestic Job Market Adaptation

To adapt to this changing landscape, Indian IT companies may increase their investment in domestic operations. This could lead to more job openings within India, potentially benefiting those unable to secure international placements. Additionally, companies might focus on upskilling their workforce to icrease productivity and competitiveness in the global market without relying heavily on overseas assignments.

Economic and Social Implications

The reduction in H-1B visa issuance and onsite opportunities could have broader economic and social implications. On the one hand, it may slow down the brain drain, keeping more skilled professionals within India and potentially boosting the local economy. On the other hand, the decreased exposure to international work environments might limit the professional development of Indian IT workers, affecting innovation and expertise in the long run.


The decline in H-1B visa reliance by Indian IT companies marks a significant shift in the industry. While this presents challenges, particularly for individuals seeking international opportunities, it also offers a chance for the domestic job market to grow and evolve. Indian IT professionals and companies must adapt to these changes by focusing on local opportunities and enhancing their skills to remain competitive in a globalised economy.