**Title:** Indian IT Firms Adjust Lobbying Strategies Amid H-1B Visa Changes
**Meta Description:** Indian IT companies are reducing lobbying efforts as H-1B visa regulations tighten, shifting focus towards local hiring and automation.
**URL Slug:** indian-it-firms-lobbying-h1b-visa-changes
**Headline:** Indian IT Companies Reassess Lobbying Strategies in Response to H-1B Visa Challenges
The landscape of lobbying for Indian IT firms is undergoing significant changes as the U.S. administration intensifies scrutiny on H-1B visas, a critical issue for many companies in the sector. With Indian firms likely to face the brunt of increased visa fees and regulatory challenges, major players are reevaluating their lobbying expenditures. Cognizant Technologies, a leading advocate for the Indian IT industry based in Teaneck, New Jersey, has notably reduced its lobbying budget from over $3 million in 2020 to $2 million in 2024. Furthermore, in the first nine months of 2025, the company has spent only $1.7 million on lobbying efforts.
The National Association of Software and Service Companies (Nasscom) has also significantly cut back its lobbying activities, spending $360,000 in 2024 compared to $700,000 in 2020. In the first three quarters of 2025, Nasscom’s lobbying expenditure has plummeted to approximately $20,000.
In contrast, India’s two largest IT service providers, Tata Consultancy Services (TCS) and Infosys, have seen their lobbying costs rise steadily from 2022 to 2024. TCS allocated $1.04 million for lobbying in 2024, up from $930,000 in 2022, while Infosys’s spending increased from $320,000 to $360,000 during the same period. However, both companies have reported a decline in lobbying expenses in the first nine months of 2025, with TCS spending $670,000 and Infosys $270,000.
Wipro Ltd, the fourth-largest IT firm, has not engaged in lobbying since 2022, having spent $90,000 in 2022 compared to $210,000 in 2020. Despite attempts to reach TCS, Cognizant, Infosys, Wipro, and Nasscom for comments, no responses were received.
Analysts attribute the reduction in lobbying efforts to several factors beyond the H-1B visa issue. These include a shift towards local hiring, increased scrutiny of offshore delivery models, diminishing returns from traditional lobbying, and a growing focus on automation and artificial intelligence—areas where regulatory frameworks are still evolving. Phil Fersht, CEO of HFS Research, noted that the traditional visa-dependent model is being redefined, prompting firms to prioritize local hiring and automation to reduce reliance on large onshore workforces.
Peter Bendor-Samuel, founder of Everest Group, emphasized that the current political climate is less favorable for offshoring, making lobbying efforts seem less worthwhile. He suggested that Indian firms are adapting to these new dynamics and may view high-profile lobbying as counterproductive.
As the debate over H-1B visas continues, the top three tech service providers have identified visa regulations as a key lobbying concern, reflecting the ongoing challenges faced by the Indian IT sector.
**FAQ:**
**Q: Why are Indian IT firms reducing their lobbying efforts?**
A: Indian IT firms are cutting back on lobbying due to increased scrutiny on H-1B visas, a shift towards local hiring, and a focus on automation, making traditional lobbying less effective.
