India's IT mega-giants Tata Consultancy Services (TCS) and Infosys are facing unprecedented pressure following reports that President Donald Trump is set to impose a staggering $100,000 fee on new H-1B visa applications. The move has sent shockwaves through the sector, with IT stocks plummeting across the board as investors brace for what could be a fundamental shift in the industry's operating model.
TCS vs Infosys: Which Company Faces the Bigger Hit?
When it comes to H-1B visa dependency, TCS emerges as the clear frontrunner – and consequently, the company with the most to lose. According to the U.S. Citizenship and Immigration Services (USCIS), TCS is the biggest Indian receiver of H-1B visas at 5,505, making it the second spot globally with 5,505 H-1B visas approved after Amazon's 10,044.
The timing couldn't be worse for TCS. The crisis has intensified for Tata Consultancy Services (TCS), which in July revealed plans to cut 12,000 jobs, about 2 percent of its global workforce in 2025. This marks one of the largest workforce reductions ever for the Tata group company.
While TCS leads in absolute numbers, Infosys still faces substantial impact with 2,004 H-1B visa recipients. When viewed as a share of their US operations, Infosys's exposure bites deeper. According to industry analyst Jefferies, Infosys has the highest share of employees on H-1B visas at 3.3 percent in 2024, compared to TCS at 2.2 percent. Infosys also leads in revenue share from H-1B employees at 11.5 percent.
The $100,000 fee could erase five to six years of profits per worker, given the six-year visa cap—rendering the model "economically unviable," per Jefferies analyst Akshat Agarwal.
"TCS's diversified scale and lower dependency give it breathing room, but Infosys's higher revenue intensity from H-1B means a sharper margin hit—potentially 4-13 percent drag on profits," Agarwal warned. Across the sector, Indian firms sponsored 13,396 H-1B visas in early 2025, ballooning fees from $13.4 million to $1.34 billion—equivalent to 10 percent of combined profits for TCS, Infosys, HCLTech, Cognizant, and LTIMindtree.
Local Hiring Push
In any case, companies have already been diversifying their talent acquisition strategies. TCS experienced a reduction in H-1B approvals by about 1,600 compared to the previous year. The firm is increasing its focus on employing local talent and sponsoring green cards as part of its ongoing strategy.
Policy Context and Broader Implications
The Trump administration's rationale centers on protecting American jobs. The White House claimed that US companies are replacing American workers with 'lower-paid' foreign employees, and cited data stating that the share of IT workers with H-1B visas has surged from 32 percent in FY 2003 to more than 65 percent in 2025.
The policy appears to be targeting what the administration views as systematic abuse of the program, with particular scrutiny on companies that maintain large H-1B workforces while simultaneously conducting layoffs.
