TCS Reduces H-1B Dependence, Shifts Focus to Local Hiring and Workforce Transformation

Tata Consultancy Services (TCS), India’s largest IT services company, is significantly scaling back its reliance on the H-1B visa programme for deploying talent to the United States. Speaking to The Economic Times, CEO K Krithivasan said the company has intentionally reduced the number of H-1B sponsorships as part of a broader strategy to diversify its workforce and increase local hiring in key markets.

According to data from the US Citizenship and Immigration Services (USCIS), TCS received 5,505 H-1B approvals in fiscal year 2025, second only to Amazon’s 10,044. It was also the only India-headquartered IT firm in the top 10 recipients. However, Krithivasan clarified that this total includes new applications, renewals, and amendments, not just fresh filings.

He added that fresh H-1B applications have steadily declined over the years, and in the current financial year, only about 500 employees were sent to the US on H-1B visas. This reflects a major shift across the Indian IT sector. In fact, the top six IT firms — TCS, Infosys, HCLTech, Wipro, Tech Mahindra, and LTIMindtree — have collectively reduced H-1B issuances by an average of 46% over the past five years.

Krithivasan said TCS is undergoing a “larger workforce transformation”, which includes increasing local recruitment to build stronger onshore capabilities. Recently, TCS announced plans to create 5,000 jobs in the UK, where it also launched an AI experience zone and design studio in London. The UK remains TCS’s second-largest market, supporting 42,000 jobs across 19 locations.

At the same time, the company is optimising its workforce globally. In the September quarter of FY26, TCS’s headcount dropped by 19,755 employees, bringing the total to 593,314. This decline is linked to an ongoing layoff exercise affecting around 2% of its global workforce, reflecting a shift toward efficiency, automation, and strategic restructuring.