TCS plans to reduce dependence on US H-1B visas: Hints on hiring 40,000 trainees in 2026- Report

Tata Consultancy Services (TCS), India's largest IT services firm, announced today that it is on track to hire 40,000 trainees this year, with plans to onboard even more fresh graduates in 2026. Milind Lakkad, TCS Chief HR Officer, shared this optimistic outlook in an exclusive interview with CNBC-TV18, stating, “It is a very positive trend, and I am planning to do more than 40,000 next year.”

This announcement follows TCS's financial results for the October to December 2024 quarter, during which the company reported a net reduction of 5,370 employees, bringing its total workforce down to 607,354 from 612,724 in the previous quarter. This marks the first decline in headcount for TCS in the current financial year, following a net addition of 11,178 employees in the first half.

Lakkad addressed the rising attrition rate, which increased to 13% in Q3 from 12.3% in the previous quarter. He characterized the change as minor and expressed confidence that attrition rates would decrease in the coming quarters. “Overall, I see a reduction in attrition in the coming quarters. LTM (last twelve months) numbers may show otherwise, because of the way it is calculated,” he explained.

In related news, an analysis of U.S. immigration data revealed that Indian-origin tech companies accounted for one-fifth of all H-1B visas issued. TCS and Infosys led the way, with 5,274 and 8,140 beneficiaries, respectively. However, Lakkad noted that TCS's reliance on U.S. visas has diminished over time. “There are many things we are dealing with; this is not the one which is at the top of my mind because we have had a global operating model, global workforce. We have been hiring people across all locations,” he stated.

K. Krithivasan, CEO and Managing Director of TCS, added that the company has shifted its model to include more than 50% local workforce in the U.S., reducing its dependency on H-1B visas.

Tech companies of Indian origin accounted for 20 percent of all H-1B visas granted by the US, with Infosys and Tata Consultancy Services (TCS) leading the charge, according to an analysis of data from the US immigration department. 

Meanwhile, data from the US Citizenship and Immigration Services revealed that between April and September 2024, out of 130,000 H-1B visas issued, around 24,766 were allocated to Indian-origin companies. 

Infosys led the pack with 8,140 visa recipients, followed by TCS at 5,274, and HCL America with 2,953. Infosys ranked second overall, only behind Amazon Com Services LLC, which issued 9,265 visas. Cognizant, founded in Chennai but now headquartered in New Jersey, was third with 6,321 visas. 

As the January 20 inauguration of Donald Trump approaches, attention is turning to potential changes in visa policy, particularly regarding the H-1B program, which allows U.S. companies to temporarily employ foreign workers in specialty occupations. Indian companies, especially in the tech sector, have been significant beneficiaries of this program.