H-1B costs soar, prompting Indian IT companies to rethink US hiring
USCIS reported eligible H-1B registrations for FY27 fell 38.5% to 211,600 from 343,981 in FY26, with FY27 at a seven-year low, citing changes to the lottery and increased AI use. Indian IT firms including Tata Consultancy Services, Infosys, and Cognizant filed more H-1B extensions and transfers. Xpheno data showed applications by 18 Indian IT firms and Cognizant dropped to 8,160 from 36,453 (2024 to 2025).
How this was made
The 30-second read
Why it matters
The article frames H-1B cost and selection-rule changes as drivers for Indian IT firms to file more extensions and transfers, and to reduce dependence on H-1B over time. It also notes a potential increase in prospective overseas filings if the fee situation persists.
Market read
Traders may view this as a policy-driven staffing and cost headwind for onsite delivery in US IT services, but the article lacks quantified company financial impact.
What to watch
The article does not quantify how much onsite work is actually at risk, nor does it provide company guidance on delivery mix, pricing, or margin sensitivity to visa availability.
Background
USCIS reported a sharp drop in eligible H-1B registrations for FY27, alongside discussion of a shift from the lottery toward wage-tier weighting and court-related fee changes.
Ticker impact
Infosys is cited as filing H-1B visa extensions for onsite employees amid rising H-1B costs and a weighted selection process.
Stock reaction, if any, would likely be gradual and tied to future commentary on staffing mix rather than immediate repricing.
The article provides qualitative actions (extensions, transfers) but no quantified financial impact or new company-specific metric.
Cognizant is also included in the staffing-data comparison showing a steep drop in total applications by Indian IT firms and Cognizant.
Potentially modest negative read-through for onsite-heavy delivery, but magnitude is unclear without segment and margin data.
The article cites a drop in applications but does not attribute it to Cognizant alone with a quantified financial linkage.
Market effects
US immigration policy mechanics (weighted selection, fee court set-aside) may push Indian IT firms toward more local hiring and offsite delivery, affecting onsite utilization assumptions across the sector.
US hiring constraints could shift demand for US-based talent and staffing models, influencing sentiment toward Indian IT exporters.
Policy-driven changes to cross-border tech staffing can affect global IT services delivery strategies, but the article is US-specific.
Counterpoint
Lower H-1B registration volumes could reflect administrative/lottery mechanics and AI-driven substitution, not a sustained demand shock to IT services.
Key entities
- US regulatorUSCIS
Reported FY27 eligible H-1B registrations fell 38.5% to 211,600 and described changes to selection mechanics.
- public companyTata Consultancy Services
Cited as filing H-1B extensions for onsite employees.
- public companyInfosys
Cited as filing H-1B extensions for onsite employees.
- public companyCognizant
Cited as filing H-1B extensions for onsite employees and included in application-volume comparisons.
- law firmCyrus D Mehta & Partners
Quoted on how fee set-aside could change filing behavior for prospective H-1Bs.
