MINT·2025-09-28 23:30Core Insights - The US government's increase in H-1B visa fees and intensified scrutiny of offshoring practices pose significant challenges for Indian software services providers [1][3][12] Company-Specific Insights - Tata Consultancy Services (TCS) and Cognizant Technology Solutions are under scrutiny from US senators regarding their hiring practices, particularly concerning the replacement of American workers with H-1B visa holders [2][6][8] - TCS has announced layoffs of over 12,000 employees globally, including in the US, and is the second-largest beneficiary of H-1B visas, sponsoring 5,505 employees in FY25 [6][9] - Cognizant was found to have engaged in race-based discrimination against American employees, with a federal jury ruling against the company last year [8][9] Industry Insights - The local outsourcing industry, valued at $283 billion, is becoming increasingly vulnerable due to regulatory changes and scrutiny, particularly as Indian IT firms derive nearly 60% of their revenue from the US [3][12] - Proposed legislation, such as the HIRE Act, aims to increase costs for companies that offshore work, potentially impacting American firms more than Indian IT service providers [12][13] - The rise of AI technology is seen as a significant risk to Indian IT outsourcing firms, alongside the changing regulatory landscape [13]