Trump backs skilled immigration, offering breather for Indian IT companies

US President Donald Trump has said that he likes both sides of the argument on the H-1B foreign guest workers' visa, noting that America needs "very competent" and "great" people, which is possible through this visa programme.

 

The remarks have sparked optimism among professionals and businesses reliant on the H-1B visa programme, and provided much-needed relief to many employed in India’s IT services sector.

 

"I like both sides of the argument, but I also like very competent people coming into our country, even if that involves them training and helping other people who may not have the qualifications they do. But I don't want to stop -- and I'm not just talking about engineers, I'm talking about people at all levels," Trump said on Tuesday.

 

 

The US President was responding to a question on the ongoing debate on H-1B visas within his support base.

 

The H-1B visa is a non-immigrant visa that allows US companies to employ foreign workers in specialty occupations that require theoretical or technical expertise. 

 

“I think this aligns with what the industry has been saying for some time: skilled labour is different from immigration. While any adverse immigration ruling will impact Indians, it may not necessarily affect the IT services industry,” a senior executive of an IT services firm said.

 

Industry players and HR experts asserted that in a world increasingly driven by artificial intelligence (AI), talent mobility is critical. According to Bloomberg, Indian citizens accounted for nearly three-fourths of the 386,000 H-1B visas issued in 2023.

 

“The US needs skilled talent, and they have been vocal about it. What might evolve is the definition of the ‘American Dream’,” said Neeti Sharma, CEO of TeamLease Digital.

 

She added that while there may not be immediate impacts, the US will need to consider developing locally available skilled employees in the long run.

 

“We’ve also observed that several global capability centres are being set up in India. Even US businesses realise the need for access to talent. Though talent in India may seem expensive, comparable talent in the US is still 25-30 per cent costlier,” she explained.

 

HR experts noted that of the 65,000 H-1B visas issued annually, Indian IT services firms typically account for 35,000-45,000. This number is expected to decline as larger companies increase local hiring.

 

For instance, Tata Consultancy Services (TCS) has focused on hiring talent from local colleges in the US. Currently, the firm's workforce in the US is evenly split between local hires and H1-B visa holders. TCS has also reiterated its reduced dependence on H-1B visas, applying for approximately 3,000 visas annually.

 

Infosys has significantly decreased its reliance on H-1B visas. During a recent media interaction, CFO Jayesh Sanghrajka said: “Within our US onsite population, over 60 per cent are independent of H-1B visas. We’ve built a resilient model, and our dependence on H-1B visas has reduced significantly. Our onsite mix has dropped from 30 per cent to 24 per cent, while nearshore operations have increased.”

 

Wipro has also followed a similar approach.

 

“We’ve been investing in and hiring a significant number of locals in the US, who now comprise a substantial portion of our workforce. Additionally, we maintain a good inventory of H-1B visas to meet requirements as needed,” Chief Human Resources Officer Saurabh Govil said during the company’s Q3 FY25 earnings call.

 

Nasscom said H-1B visas have nothing to do with immigration issues and instead fill critical skills gaps in the US.

 

"This visa bridges a critical skills gap...does the skills gap exist during Trump's era? As of now, the answer is yes. Will the H-1B visas be important as a result of that, the answer is yes. Will India be important because of our skill sets - Indian nationals getting 70 per cent of visas - the answer is yes. So India has a very important role and Indian talent has a very important role in the growth of the US economy," Nasscom vice-president Shivendra Singh told PTI. 

386,000: Number of H-1B visas granted to Indian citizens in 2023

 

*  IT firms say their dependency on H-1B visas has reduced

 

50%: Share of TCS’ US workforce holding H-1B visas

 

60%: Share of employees in Infosys dependent on H-1B visa in US 

 

*  Local US hiring ramped up, says Wipro