TCS vs Infosys: H-1B Visa Employees – Which IT Company Leads?
- Here's a breakdown of the key information from the text, focusing on the impact of the proposed $100,000 H-1B visa fee on Indian IT companies:
- * H-1B Visa Reliance: Several Indian IT companies heavily rely on H-1B visas.
- In essence, the proposed fee is a important disruption that will force Indian IT companies to re-evaluate their reliance on H-1B visas and adjust their business strategies.
Here’s a breakdown of the key information from the text, focusing on the impact of the proposed $100,000 H-1B visa fee on Indian IT companies:
Key Findings:
* H-1B Visa Reliance: Several Indian IT companies heavily rely on H-1B visas.
* Revenue Share (from H-1B employees):
* Infosys: 11.5% (highest)
* Hexaware: 10.4%
* LTIMindtree: 8.8%
* Coforge: 8.5%
* HCL Tech: 8%
* TCS: 7.7%
* Wipro: 7.5%
* Market Share (of H-1B visa applications):
* Infosys: 3% (largest)
* LTI Mindtree: 2.5%
* HCL Tech, wipro, Tech Mahindra: 2-2.3%
* Impact of the $100,000 Fee:
* Profitability: The fee will likely entirely offset the EBIT (Earnings Before Interest and Taxes) per H-1B employee. Currently, EBIT per H-1B worker is roughly $15,000-$20,000 annually.
* Shift in Strategy: Companies will likely move away from H-1B visas towards:
* local hiring
* Subcontracting
* Near/offshoring
* Wage Increases: A talent supply crunch is expected to drive up wages for onsite employees.
* Profit Drag: Profits coudl be reduced by 4-13% due to wage increases.
* Employee Numbers (Estimates):
* Infosys: 12,000-15,000 employees on H-1B visas
* TCS: 10,000-12,000 employees on H-1B visas
* Essential Rethink: The fee forces a major change to the operating models that have driven India’s IT success.
In essence, the proposed fee is a important disruption that will force Indian IT companies to re-evaluate their reliance on H-1B visas and adjust their business strategies.