Indian IT services companies came under the spotlight after U.S. President Donald Trump announced a steep $100,000 fee on H-1B visa applications, a move that could weigh on sectoral sentiment. The H-1B programme has long been vital for Indian IT majors, which rely on a portion of U.S. onshore staff for project execution. While the industry at large is expected to face headwinds, individual companies have clarified their positions on the potential impact.
Coforge stated that in FY25 it filed only 65 new H-1B petitions, of which 63 were approved by the U.S. Citizenship and Immigration Services (USCIS). The company highlighted that over the years it has consciously reduced its reliance on new visa petitions for project staffing, mitigating exposure to policy risks. Analysts see the stance as a neutral development given its limited filings.
Persistent Systems said the recent executive order on visa rules is not expected to materially impact its operations. The company noted that its delivery model remains resilient and diversified, allowing it to navigate policy changes without significant disruptions.
Mphasis commented that while there are changes in the visa fee structure, it does not anticipate any meaningful financial or operational impact. The company cited its low H-1B filing rate as a factor insulating it from such regulatory costs, keeping its outlook largely neutral.
Sasken Technologies also reassured stakeholders that its business model, which is strongly offshore-centric, will not be impacted by the H-1B visa programme changes. The company emphasized that its delivery framework is structured to minimize dependency on onshore visas, positioning it favorably in the current scenario.
Despite these company-specific clarifications, the broader IT sector could still face pressure. Major firms such as Tata Consultancy Services, Infosys, LTI Mindtree, and Wipro, with larger U.S. exposure, may be more vulnerable to sentiment-driven weakness following the visa fee hike. Market participants are expected to closely watch whether this announcement influences client decision-making or adds to the cost burden for industry leaders.
The U.S. remains the single largest market for Indian IT firms, and any increase in visa-related costs tends to have ripple effects across the sector. While companies with diversified and offshore-heavy delivery models appear relatively insulated, the headline risk from a $100,000 fee per H-1B visa petition could weigh on the overall IT index in the near term.
Disclaimer: The above article is based on company updates and sector developments provided. The views mentioned are not investment recommendations, and readers should not construe them as advice to buy, sell, or hold any stock.
