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Infosys steps up US lobbying spend while TCS, Cognizant, Wipro pull back
MINT· 2025-11-28 08:32
Core Insights - Infosys Ltd is the only major IT services company that has increased its US lobbying expenditure over the past five years, while competitors like Tata Consultancy Services (TCS), Cognizant, and Wipro have reduced their spending [1][19] - The US government, which constitutes a significant portion of revenue for these companies, has tightened labor mobility and restricted access to foreign workers, prompting a shift in lobbying strategies [2][19] Lobbying Expenditure - Infosys spent $270,000 on lobbying in the first nine months of the year, an increase from $240,000 in 2020 [2] - In contrast, TCS and Cognizant reported declines in lobbying expenditures, spending $670,000 and $1.7 million respectively in the first nine months of 2025, down from $750,000 and $3.15 million in 2020 [3] - Wipro's lobbying costs decreased from $210,000 in 2020 to $90,000 in 2022, and it has not engaged lobbying services since then [3] Industry Trends - The overall lobbying spending by major Indian IT firms, including Nasscom, has been declining since 2020, with Nasscom spending less than one-tenth of its 2020 expenditure of $700,000 in the first nine months of 2025 [4][5] - Collectively, the largest IT services companies and Nasscom spent $2.7 million on lobbying, which is less than 1% of their revenue and significantly lower than the $5.05 million spent in 2020 [6] Strategic Shifts - The decline in lobbying costs is attributed to an increase in local hiring and a shift towards offshore delivery and AI utilization, reducing dependency on large onshore workforces [11] - The political climate has changed, making lobbying less effective, leading firms to focus on structural changes rather than political influence [12] Key Issues in Lobbying - H-1B visa regulations remain a central lobbying focus for the top three IT service providers, with TCS and Cognizant highlighting immigration-related issues in their lobbying reports [13][14] - Recent changes in H-1B application fees and scrutiny over hiring practices have intensified the need for lobbying among these firms [15][16][17] Conclusion - Infosys stands out for increasing its lobbying efforts amidst a general decline in political spending by its peers, reflecting a strategic pivot in response to stricter US labor mobility rules and a focus on local hiring and AI-driven models [19]