HCL Tech’s Limited Dependence on H1B Visa Ensures Stability Amid Policy Changes

HCLTech’s strategy of hiring 80% local talent in the U.S. ensures minimal impact from potential changes in the H1B visa program, as reported in news coverage quoting a senior company executive. This reflects the company’s resilience and adaptability in the face of shifting policies

HCLTech’s Local Hiring Strategy 

HCLTech, a leading global IT services company, remains confident about its U.S. operations, even in light of potential changes to the H1B visa policy under the new US administration.

A senior executive confirmed that HCLTech relies on a workforce composition that minimises its dependence on H1B visas, with approximately 80% of its US employees being local hires, as per news reports

This strategic move has been in place for the last four years and is expected to shield the company from any significant disruptions if the policy environment shifts.

Why H1B Visa is a Concern for IT Companies?

The H1B visa program allows U.S. companies to hire foreign workers temporarily for specialised roles. Indian firms, particularly in the tech industry, have been major beneficiaries of this program.

While Indian IT firms have traditionally benefited from the H1B visa program, changes proposed by former U.S. President Donald Trump during his administration, which prioritised American workers, might bring more challenges.

However, HCLTech’s focus on local talent-hiring has allowed the company to keep its H1B applications to a modest number, between 500 and 1,000 annually.

HCLTech’s proactive approach has not only reduced its reliance on foreign workers but also provided it with a competitive edge as immigration policies continue to evolve.

The company’s recent financial growth, including a 5.54% profit increase, further underscores the resilience of its business model.

Indian Tech Giants Dominate US H-1B Visa Allocations

According to data from the U.S. Citizenship and Immigration Services, Indian-origin tech companies secured 20% of all H-1B visas issued by the U.S., with Infosys and Tata Consultancy Services at the forefront.

During the April-September 2024 period, out of the 130,000 H-1B visas granted, approximately 24,766 were allocated to companies based in India.

Share Price Performance

HCL Technologies share price traded 0.69% higher at ₹1,826 at 2:45 PM on the NSE. The stock opened at ₹1,836 up from its previous close of ₹1,813.55.

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