I've been observing a fascinating and, in my view, long-overdue transformation in the global tech landscape. Recent reports highlight a staggering 56% drop in H-1B visa usage by Indian IT companies over the past eight years (Indian IT cuts H-1B visa use). Simultaneously, US Big Tech has emerged as the top sponsor for these visas. This isn't just a statistical anomaly; it is a profound signal of a maturing Indian technology sector and a rebalancing of global talent.
For decades, the H-1B visa was seen as the golden ticket, a rite of passage for ambitious Indian tech professionals. The business model for many of our IT giants was built on a foundation of labor arbitrage, moving skilled individuals to client sites in the West. It was a model that served its purpose, building India’s reputation as a tech powerhouse. But I have always believed that true, sustainable power comes from building capabilities at home, not just exporting talent.
This shift brings to mind some of my earlier reflections on the inevitable evolution of the IT industry. I had written about the critical need to move from people-led to platform-driven models, particularly as AI and automation began to reshape the world. In my post, "AI is widening Skills Gap?", I discussed how adapting to AI/GenAI would necessitate a strategic pivot. The current decline in H-1B petitions from Indian firms is a direct manifestation of this pivot. They are automating routine tasks, reducing their dependency on massive headcounts onsite, and investing heavily in upskilling their workforce within India.
The core idea I want to convey is this — I take a moment to notice that I had brought up this thought on the topic years ago. I had already foreseen this shift away from mere labor arbitrage towards building deep, intrinsic value. Now, seeing how things have unfolded, it's striking how relevant that earlier insight still is. Reflecting on it today, I feel a sense of validation. Indian IT is finally embracing a future where its strength lies not in the number of visas it can secure, but in the innovation it can foster within its own shores.
A New Definition of Ambition
What does this mean for the Indian professional? The dream is no longer just about relocating to Silicon Valley. The new aspiration is to be part of a global, cutting-edge project while being based in Bengaluru, Hyderabad, or Pune. The opportunities for impactful work on a global scale are burgeoning right here. This trend is mirrored in student preferences, with many now considering countries like Germany for higher education, diversifying their options beyond the traditional choices (Germany emerges as a top choice for Indian students).
Meanwhile, US Big Tech continues to seek out the world's best minds for highly specialized roles. Their use of the H-1B program is not for scale, but for securing niche, frontier talent in fields like artificial general intelligence and quantum computing. This creates a healthy symbiosis: the world's most advanced companies are tapping into India's elite talent pool, while the broader Indian tech industry focuses on building a robust, self-reliant ecosystem.
This is not a story of decline but one of evolution. It is the story of a 'brain drain' transforming into a 'brain circulation,' and ultimately, a 'brain gain.' We are witnessing the great Indian tech homecoming—a homecoming not necessarily of people, but of opportunity, innovation, and ambition.
Regards,
Hemen Parekh
Of course, if you wish, you can debate this topic with my Virtual Avatar at : hemenparekh.ai
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