In a significant move reflecting the changing landscape of global tech talent, Indian IT major LTIMindtree has announced it will stop applying for new H-1B work visas for the United States. The company’s CEO, Venugopal Lambu, stated the firm will now focus on hiring talent locally within the U.S. This decision comes amidst heightened scrutiny and increased costs for the visa program.
What Prompted This Strategic Pivot in H-1B Visa Shift?
The direct catalyst is a recent U.S. proclamation that imposed a hefty $100,000 fee on new H-1B visa applications. In an interview with Moneycontrol, CEO Venu Lambu framed the decision as a clear business choice. “Unless we have a strong business case to spend $100,000, we are not going to do that,” he stated. The new fee applies only to first-time petitions, not renewals, making fresh applications a significantly costlier proposition. This financial burden forced a strategic reevaluation for the company.
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Who Does This Decision Impact Immediately?
The policy shift will affect LTIMindtree’s upcoming recruitment cycle for the U.S. market. Lambu confirmed the change is effective for the next H-1B lottery season. However, it is crucial to note that this applies only to new applications. The company will continue to support and renew existing H-1B visas for its current employees. Lambu also left the door open for a future policy reversal if the U.S. government’s regulations change.
How Dependent is LTIMindtree on the H-1B Visa?
Interestingly, the company’s reliance on the H-1B program is relatively contained. Out of its global workforce exceeding 86,000 employees, approximately 4,000 are in the U.S. on H-1B visas. Lambu indicated this manageable level of dependence made the transition feasible. “In the short term, since we already reduced the dependence on H-1B and we had machinery in place to do the onsite hiring,” he explained, suggesting the groundwork for local recruitment was already laid.
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What is the Bigger Picture for the Company?
Beyond visa costs, Lambu connected this decision to a broader corporate strategy focused on profitable growth. He revealed that in the first half of the fiscal year, LTIMindtree increased revenue by $64 million while its overall headcount decreased. The future vision is to decouple revenue growth from proportional hiring. “If we are growing 2X over the next five years or so, you should grow probably at 1.2X or 1.3X of your headcount,” Lambu outlined. Halting new H-1B applications is part of a plan to boost revenue without significantly expanding payrolls.
