Infosys, Indian IT Under Pressure as H-1B Fee Hike Raises Cost Concerns

The US government’s move to impose a $100,000 annual fee on H-1B visas has rattled India’s IT industry, which relies heavily on sending engineers onsite to client locations. This sudden increase not only raises cost pressures but also forces a rethink of delivery models across the sector. Shares of frontline IT companies, including

and , were among the most affected in early trading as investors priced in the risk of margin compression. Infosys, with a significant proportion of employees working onsite in the US, is seen as particularly vulnerable to higher visa costs. Wipro, too, could feel the pinch due to its sizeable onsite workforce. However, analysts point out that companies like and are relatively better placed. TCS, with its diversified global base and greater offshore reliance, is expected to absorb the impact more smoothly. HCLTech’s strength in infrastructure management and product engineering, where offshore delivery dominates, could also provide a buffer. Beyond the immediate hit, many experts believe the development may accelerate the long-term shift toward offshore delivery from India. This could ultimately benefit companies with stronger offshore operating models and robust talent pipelines at home.