H-1B Approvals for IT Companies Fall to 4,500, Marking a Decade Low
The landscape of H-1B visa approvals for Indian IT firms has dramatically shifted, with the top seven companies receiving only 4,573 petitions for initial employment in fiscal year 2025. This marks a staggering 70% decrease since 2015 and a 37% drop compared to 2024, according to a report from the National Foundation for American Policy (NFAP). Tata Consultancy Services (TCS) stands out as the sole Indian IT firm among the top five employers for new H-1B approvals, while the overall trend indicates a growing focus on retaining existing employees rather than hiring new talent.
Declining H-1B Approvals for Indian IT Firms
The NFAP analysis reveals a concerning trend for Indian IT companies in the U.S. job market. The 4,573 H-1B petitions approved for initial employment in FY 2025 represent a significant decline from previous years. TCS, India’s largest IT services company, remains the only Indian firm in the top five for both new and continuing employment approvals. In FY 2025, TCS secured 846 approvals for initial employment, a sharp decrease from 1,452 in 2024 and 1,174 in 2023. The company also faced a 7% rejection rate for extension requests, which is notably higher than its competitors. In contrast, the overall rejection rate for continuing-employment petitions across the U.S. Citizenship and Immigration Services (USCIS) stood at just 1.9%.
Shifts in Employer Landscape
For the first time, major tech companies such as Amazon, Meta, Microsoft, and Google have taken the lead in H-1B approvals, occupying the top four positions for new petitions. This shift highlights a significant change in the competitive landscape, with only three India-based companies making it into the top 25 employers for initial H-1B petitions. The data indicates that the focus of many companies has shifted from hiring new skilled workers to retaining their current workforce. Mansi Singh, a partner at law firm BTG Advaya, noted that the H-1B program is increasingly being used as a means to maintain existing employees rather than attract new talent.
Rejection Rates and Employment Trends
While the rejection rates for continuing employment petitions remain relatively low for major IT firms, initial employment denials have surged in FY 2025. TCS reported a rejection rate of 2% for initial employment, which is among the lowest for larger employers. In comparison, HCL America faced a 6% rejection rate, while LTIMindtree and Capgemini reported rates of 5% and 4%, respectively. This trend suggests that companies are prioritizing the legal employment of their existing workforce, as the H-1B program evolves into a mechanism for managing employees already in the green card queue.
Concerns Over Labor Certifications
The decline in H-1B approvals is mirrored by a drop in labor certifications for software engineers, which have decreased for four consecutive years. According to data from H1BGrader, labor certifications in this category fell from 40,378 in 2022 to 23,922 by the third quarter of 2025. Camila Façanha, Head of Legal at Beyond Border, commented that these rejection rates may indicate increased scrutiny of the H-1B program, particularly concerning its application in technology roles. Despite some policymakers labeling foreign-born professionals as “cheap labor,” USCIS data reveals that the average annual salary for H-1B workers in computer-related occupations was $136,000 in FY 2024, with a median salary of $125,000. This underscores the high demand for skilled professionals in the U.S. and globally.
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