This, according to analysts, is because Indian IT firms, especially those in the Americas, have greatly increased their emphasis on recruiting locally.

Even if worries regarding the examination and enforcement of H-1B visas are still prevalent, their true effects on India's IT services industry seem to be less pronounced. Years of aggressive pay realignment and worker localization are responsible for this. Accenture, TCS, Wipro, Infosys, and HCL Tech did not mention any issues with H-1B visa acceptance or denial rates during their most recent Q4 earnings calls.

The businesses did, however, note that Trump's tariffs created ambiguous business conditions. The government took a limited approach to legal immigration throughout Trump's first term, including focusing on work visas. The government considerably tightened the requirements for H-1B and L-1 visa eligibility with Executive Order 13788, "Buy American and Hire American."

Due to their heavy reliance on foreign skilled workers, IT services businesses were disproportionately affected by the dramatic increase in denial rates for these visa categories. This reliance has, however, drastically decreased over the last 10 years as businesses have actively localized their workforce in reaction to stricter visa requirements. The research claims that between FY2015 and FY2024, big companies like Infosys, TCS, and Wipro saw a 50% to 80% decline in H-1B visa approvals, indicating this strategy change.

Indian IT services companies are now better protected against potential delays in the H-1B visa program because of this changing labor makeup. The decreased dependence on H-1B holders may lessen the impact on these businesses, even if the Trump administration returns with a renewed emphasis on limiting work visas.