Trump's $100,000 H-1B visa fee may deal billion-dollar blow to TCS, Infosys, Cognizant. Details here

US President Donald Trump’s plan to charge $100,000 for hiring new H-1B workers from outside the US could significantly impact IT outsourcing and staffing firms. According to Bloomberg News, this marks the most stringent restriction so far on the hiring of skilled foreign workers.

An analysis shows that companies such as Tata Consultancy Services Ltd., Infosys Ltd., and Cognizant Technology Solutions Corp. are likely to be among the worst affected. These firms often act as intermediaries for other companies hiring H-1B workers. Nearly 90% of new H-1B hires at these three companies between May 2020 and May 2024 were approved through US consulates.

Had the proposed fee been applicable during this period, it would have cost these companies hundreds of thousands of dollars per worker. More than 93% of new Infosys H-1B hires—over 10,400 employees—would have been subject to the $100,000 fee. Tata would have paid the charge for about 6,500 workers, accounting for 82% of its new hires, while Cognizant would have incurred the fee for over 5,600 employees, or 89% of its new hires. In total, visa charges could have exceeded $1 billion.

Workers already present in the US can obtain H-1B visas through “Change of Status” and are exempt from the fee. The charge would apply only to those undergoing “Consular Processing”.

Under the H-1B visa programme, US companies hire foreign professionals with specialised skills for an initial period of three years, extendable by another three. Data from the US Citizenship and Immigration Services (USCIS) shows that Indians account for about 71% of all approved H-1B applications. In September, US President Donald Trump signed a proclamation increasing the H-1B visa fee to $100,000—the largest hike in the programme’s history.