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After $100,000 H‑1B Surcharge, TCS Halts New Visa Hiring as HCL Cuts Reliance

The shift reflects rising costs for visa‑dependent employers and a recalculation of U.S. staffing strategies.

Overview

  • Tata Consultancy Services, the No. 2 H‑1B sponsor in FY2025 with 5,505 approvals, says it will stop adding new H‑1B hires in the U.S. and increase local recruitment.
  • HCL Technologies says it is reducing dependence on visas and leaning on its global delivery model in response to the policy change.
  • The fee is in force as a one‑time charge on new petitions, not renewals, according to White House clarification and subsequent reports.
  • DHS is advancing additional H‑1B rules with publication expected in December, including tighter cap‑exemption criteria, scrutiny of violators and oversight of third‑party placements.
  • Legal challenges to the surcharge are underway as reporting shows about 71% of new approvals go to Indian nationals and recent market moves hit Indian IT stocks and the rupee.