Tata and Infosys to Bear Brunt of Trump’s $100,000 H-1B Worker Fee

Core Insights - The Trump administration's $100,000 fee for new H-1B workers could significantly impact the IT outsourcing and staffing industries, which have been targets for both political parties [1][2] - The fee represents the most substantial restriction on the employment of skilled foreign workers imposed by the Trump administration to date [1] Impact on Multinational Staffing Firms - The fee is expected to disproportionately affect multinational staffing firms that facilitate the hiring of H-1B workers, including Tata Consultancy Services, Infosys, and Cognizant Technology Solutions [2] - Nearly 90% of new H-1B hires at these firms from May 2020 to May 2024 were approved at US consulates, indicating a significant financial burden if the fee were applied [2] Financial Implications for Specific Companies - Infosys would face over $1 billion in visa charges, as more than 93% of its new H-1B hires (over 10,400 workers) would incur the $100,000 fee [3] - Tata Consultancy Services would be liable for the fee for 6,500 workers, representing 82% of newly approved H-1B workers [3] - Cognizant Technology Solutions would encounter the fee for more than 5,600 employees, or 89% of its new H-1B hires [3] Industry Response and Future Outlook - Legal challenges may temporarily block the fee, but industry experts anticipate a significant decline in visa demand and an increase in overseas placements [4] - Some firms, like Cognizant, report that the fee will have limited short-term impact on their operations due to a reduced reliance on visas for staffing [5] - Large tech and IT firms have historically dominated the H-1B program, claiming most of the 85,000 visa slots available annually [5]