TCS to cut H-1B visa dependence, focus on hiring local talent in the US: CEO Krithivasan
The company plans to focus on local recruitment, signalling a gradual shift away from dependency on visa-based employees
- Oct 14, 2025,
- Updated Oct 14, 2025 10:30 AM IST
Tata Consultancy Services (TCS) is realigning its US hiring strategy, with CEO K Krithivasan confirming that the IT major will bring in fewer H-1B hires this financial year. The company plans to focus on local recruitment, signalling a gradual shift away from dependency on visa-based employees, according to a Times of India report.
Currently, around 11,000 of TCS’s 32,000–33,000 US employees are on H-1B visas. “We’ll continue to hire more locally. We had 500 employees on H-1B visa travelling from India to the US so far this financial year,” Krithivasan said. “Even among those approved, we deploy fewer people than the number of approvals each year. This is part of a consistent reduction in dependency on visa-based talent over time. L-1 visas serve a very specific purpose and will not replace H-1B visas.”
The decision comes amid a muted global demand environment for IT services, with clients exercising caution and discretionary spending shrinking. Earlier this year, TCS implemented a 2 per cent headcount reduction, which Krithivasan said was executed “with a great deal of compassion and care,” ensuring fair severance to affected employees.
While navigating near-term market pressures, TCS is simultaneously advancing its AI-driven transformation. The company has announced a $7-billion investment in AI data centres worldwide as part of its strategy to become a global leader in AI-led IT services.
Krithivasan said TCS’s AI approach is structured around five key pillars: transforming internal operations, upgrading client delivery, building workforce capabilities, driving value-chain disruption through AI, and strengthening its ecosystem. “Every project now is AI-led in some form. Drawing a clear line to differentiate AI-led projects is becoming harder,” he noted, explaining why TCS has not yet released AI-specific revenue figures.
Despite short-term challenges, TCS sees steady improvement in international revenue. The company is also adapting to the rise of Global Capability Centres (GCCs), once viewed as competitors, which are increasingly becoming collaborators in its evolving service model.
Tata Consultancy Services (TCS) is realigning its US hiring strategy, with CEO K Krithivasan confirming that the IT major will bring in fewer H-1B hires this financial year. The company plans to focus on local recruitment, signalling a gradual shift away from dependency on visa-based employees, according to a Times of India report.
Currently, around 11,000 of TCS’s 32,000–33,000 US employees are on H-1B visas. “We’ll continue to hire more locally. We had 500 employees on H-1B visa travelling from India to the US so far this financial year,” Krithivasan said. “Even among those approved, we deploy fewer people than the number of approvals each year. This is part of a consistent reduction in dependency on visa-based talent over time. L-1 visas serve a very specific purpose and will not replace H-1B visas.”
The decision comes amid a muted global demand environment for IT services, with clients exercising caution and discretionary spending shrinking. Earlier this year, TCS implemented a 2 per cent headcount reduction, which Krithivasan said was executed “with a great deal of compassion and care,” ensuring fair severance to affected employees.
While navigating near-term market pressures, TCS is simultaneously advancing its AI-driven transformation. The company has announced a $7-billion investment in AI data centres worldwide as part of its strategy to become a global leader in AI-led IT services.
Krithivasan said TCS’s AI approach is structured around five key pillars: transforming internal operations, upgrading client delivery, building workforce capabilities, driving value-chain disruption through AI, and strengthening its ecosystem. “Every project now is AI-led in some form. Drawing a clear line to differentiate AI-led projects is becoming harder,” he noted, explaining why TCS has not yet released AI-specific revenue figures.
Despite short-term challenges, TCS sees steady improvement in international revenue. The company is also adapting to the rise of Global Capability Centres (GCCs), once viewed as competitors, which are increasingly becoming collaborators in its evolving service model.