Tata Consultancy Services (TCS), India’s largest IT services firm, has announced ambitious plans to significantly reduce its dependence on US H-1B visas.
As part of this strategy, TCS aims to hire 40,000 trainees this year, with plans to onboard even more fresh graduates in 2026.
This move is expected to bolster the company’s local workforce in the US, aligning with the growing trend of prioritizing domestic talent.
Reducing Reliance on H-1B Visas
TCS’s Chief HR Officer, Milind Lakkad, shared this optimistic outlook in an exclusive interview with CNBC-TV18, stating, “It is a very positive trend, and I am planning to do more than 40,000 next year.”
This announcement follows TCS’s financial results for the October to December 2024 quarter, during which the company reported a net reduction of 5,370 employees, bringing its total workforce down to 607,354 from 612,724 in the previous quarter.
This marks the first decline in headcount for TCS in the current financial year, following a net addition of 11,178 employees in the first half.
Reflecting on the attrition rate that rose to 13% in Q3 from 12.3% in the previous quarter, Lakkad characterized the change as minor and expressed confidence that attrition rates would decrease in the coming quarters.
“Overall, I see a reduction in attrition in the coming quarters. LTM (last twelve months) numbers may show otherwise, because of the way it is calculated,” he explained.
TCS Shifting to a Local Workforce
K. Krithivasan, CEO and Managing Director of TCS, added that the company has shifted its model to include more than 50% local workforce in the US, reducing its dependency on H-1B visas.
Tech companies of Indian origin accounted for 20 percent of all H-1B visas granted by the US, with Infosys and Tata Consultancy Services (TCS) leading the charge, according to an analysis of data from the US immigration department.
The future of the H-1B visa program remains uncertain as the new US administration under President Donald Trump takes office.
Indian companies, especially in the tech sector, have been significant beneficiaries of this program, but potential changes in visa policies could impact their operations.
TCS remains confident about minimal disruption from potential H-1B rule changes, citing low reliance on the visa.
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