TCS vs Infosys: Who’s More Exposed to the $100K H-1B Visa Fee?

The proposed $100,000 H-1B visa fee by US President Donald Trump threatens to disrupt the long-standing business model of Indian IT firms. With Infosys holding the highest share of H-1B visa employees, companies like TCS, Hexaware, and LTIMindtree may need to rethink how they staff US projects while safeguarding their profit margins.

Infosys Tops H-1B Visa Share Among Indian IT Firms

Among India’s top IT companies, Infosys has the highest proportion of employees on H-1B visas. In 2024, roughly 3.3% of Infosys’ workforce is estimated to be on an H-1B visa, compared with 2.2% for TCS. Hexaware follows at 3%, LTIMindtree at 2.5%, while HCL Tech, Wipro, and Tech Mahindra range between 2–2.3%.

Revenue Exposure Highlights the Risk

Infosys also leads in revenue exposure tied to H-1B employees, generating 11.5% of its revenue from them. Hexaware comes next at 10.4%, LTIMindtree at 8.8%, Coforge at 8.5%, HCL Tech at 8%, TCS at 7.7%, and Wipro at 7.5%. The high dependency makes the $100,000 visa fee a significant financial challenge, potentially wiping out five to six years of profit per employee.

Why the Fee Could Break the Economics of US Staffing

Indian IT companies typically bill onsite US employees at $150,000–$200,000 annually but earn only around 10% margins, translating to $15,000–$20,000 annual profit per H-1B worker. With the new fee, this traditional model becomes economically unviable, especially since H-1B visas are capped at six years.

Alternatives for Indian IT Firms

Faced with these challenges, Indian IT companies may consider alternative strategies:

• Hire local US talent to reduce visa dependency.
• Use subcontractors to manage costs.
• Nearshore operations in countries like Mexico or Canada.
• Offshore work in India while leveraging remote collaboration tools.

Read More: Infosys, Wipro, LTIMindtree Share Price Rally as Nifty IT Jumps 1.7% After Fed Rate Cut.

Conclusion

Infosys may currently have the largest share of H-1B employees, but the $100,000 visa fee forces all Indian IT firms, including TCS and mid tier players like Hexaware and LTIMindtree, to rethink their US business models. The traditional onsite staffing strategy that fueled India’s IT growth may soon shift toward a mix of local hiring, nearshoring, and offshoring to sustain profitability.

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