Indian IT Firms Hit by 6% H-1B Visa Denial Rate in FY 2025
A significant divergence has emerged in the U.S. H-1B visa landscape, with Indian-headquartered IT services firms facing increasingly high denial rates for new petitions, even as major American technology companies secure approvals at near-record levels.
Data from the National Foundation for American Policy (NFAP) covering Fiscal Year 2025 highlights a structural shift in how U.S. Citizenship and Immigration Services (USCIS) is evaluating visa applications, favoring product-based companies over traditional outsourcing models.
A Tale of Two Approval Rates for H-1B Visa
The disparity in denial rates for initial employment is stark.
Leading U.S. employers like Amazon, Microsoft, Google, and Meta reported rejection rates hovering between a mere 0.4% and 1%.
In contrast, several top Indian IT service providers registered denial rates well above the national average of 2.8%.
HCL America recorded one of the highest denial rates at 6%, followed by LTIMindtree at 5%, and Cognizant and Capgemini at 4% each.
This high level of scrutiny on outsourcing firms indicates continued policy pressure on companies that traditionally deploy visa holders at client sites.
The Dominance of US Tech
For the first time, US-based technology behemoths have captured the top four spots for initial H-1B approvals.
Amazon led the pack with 4,644 new petitions, followed by Meta, Microsoft, and Google.
Industry observers link this surge to the massive capital expenditures these firms are pouring into Artificial Intelligence (AI) and advanced research.
The specialized nature of these roles, tied to product development and innovation, appears to align closely with the “specialty occupation” requirements of the H-1B program, resulting in streamlined approvals.
Indian Firms Pivot Strategy
The tightening environment has forced Indian IT majors to fundamentally rethink their talent acquisition strategies in the U.S.
The top seven Indian-headquartered firms collectively secured only 4,573 approvals for initial employment in FY 2025, marking a steep 37% fall from the previous year and a massive 70% decline since 2015.
This pullback is strategic, driven by the high cost and uncertainty of the visa process.
Several Indian IT executives, including the CEO of TCS, have confirmed a strategy to rely less on U.S. visa hires.
They are emphasizing instead increased local recruitment within the U.S., expanded offshore delivery capabilities, and greater adoption of automation.
The trend underscores the reality that the overall H-1B program remains essential for specialized talent.
However, policy scrutiny continues to differentiate sharply between business models, effectively closing the door to high-volume outsourcing through the visa route.
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