Following the U.S. administration’s decision to impose a $100,000 annual fee on H-1B visa petitions, Cognizant Technology Solutions has issued a measured response, stating that it is reviewing the implications of the policy while relying on its robust local recruiting and hiring infrastructure to navigate the change.
The Teaneck-headquartered IT services firm, which has a significant presence in India and the U.S., acknowledged the potential disruption but emphasized its operational resilience.
“We are reviewing the President’s Proclamation to evaluate the potential implications. At this point, we do not have the details to respond accurately,” a Cognizant spokesperson said.
“Cognizant has established a resilient business model that creates flexibility to hire the best candidates for open roles, including robust local recruiting and hiring infrastructure”.
Background: H-1B Fee Hike and Its Implications
On September 19, 2025, President Donald Trump signed a proclamation mandating a $100,000 annual fee for each H-1B visa petition.
The move is part of a broader immigration overhaul aimed at curbing low-cost labor imports and prioritizing high-salary, high-skill roles.
The fee applies to new petitions and is expected to generate over $100 billion for the U.S. Treasury.
The H-1B visa program has long been a gateway for Indian IT professionals to work in the U.S., particularly in specialized fields such as software engineering, data science, and cybersecurity.
Cognizant, along with other Indian IT majors like Infosys, TCS, and Wipro, has historically relied on this program to staff U.S. projects.
Cognizant Workforce Strategy: Local Hiring and Flexibility
Cognizant employs over 340,000 people globally, with nearly three-fourths of its workforce based in India.
Despite its reliance on Indian talent, the company has been steadily increasing its local hiring in the U.S. to reduce dependency on H-1B visas.
This shift aligns with broader industry trends, as Indian IT firms pivot toward local recruitment, subcontracting, and offshore delivery models.
According to FY25 data, Cognizant secured 3,700 H-1B approvals, marking a 5% increase from the previous year.
This contrasts with declines seen by other firms such as Infosys and Wipro, indicating Cognizant’s continued engagement with the visa program even as it diversifies its hiring strategy.
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