Trump’s $100,000 Visa Fee: Trouble Ahead for TCS and Infosys

 


Trump’s $100,000 Visa Fee: Trouble Ahead for TCS and Infosys

What’s Happened

President Donald Trump has introduced a new $100,000 fee on H‑1B visa applications. This hits Indian IT giants Tata Consultancy Services (TCS) and Infosys hardest, as they rely heavily on sending skilled workers from India to the US. The extra cost threatens their business model, hiring plans, and ability to stay competitive.  

The H‑1B Programme

The H‑1B visa allows skilled foreign workers, mainly in technology, to work in the US. In September 2025, Trump added a huge $100,000 charge for each new worker hired from abroad. It’s part of his drive to prioritise American workers and reduce foreign labour.  

Why TCS and Infosys Are Hit Hard


- They are among the biggest users of H‑1B visas, especially for staff placed at US client sites.  


- Almost nine out of ten hires between 2020 and 2024 went through US consulates, meaning they’re directly caught by this new fee.  

- Their model depends on bringing in cost‑effective Indian talent, so this policy undermines their entire approach.  

The Money Side


- Extra costs: Each new worker now comes with an added $100,000 bill before salary or training.  


- Hiring slowdown: Firms may cut back on overseas recruitment or shift more work back to India.  


- Client impact: US clients relying on outsourced staff could face higher project costs.  


- Industry shock: India’s IT sector, long dependent on H‑1B visas, is rattled.  


The Bigger Picture


- Indian IT firms: May need to rethink outsourcing, focusing more on local US hiring or remote delivery. 

 

- Workers: Skilled Indian professionals will find fewer opportunities in the US.  


- US market: While aimed at protecting American jobs, it could reduce access to specialist tech talent and slow innovation.  


Problems Ahead


- Financial strain: Outsourcing firms risk losing contracts if costs spiral.  


- Talent bottleneck: Indian workers may struggle to enter the US market.  


- Uncertainty: Future policy changes could further disrupt global IT staffing.  


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