Impact of H-1B Visa Issues on Major IT Service Providers: Insights from Persistent Systems, Sasken Technologies, Cyient, Firstsource Solutions, and Coforge

IT Firms Assess Impact of H-1B Visa Changes on Financial Performance

In a significant development for the Indian IT sector, five major service providers—Persistent Systems Ltd., Sasken Technologies Ltd., Cyient Ltd., Firstsource Solutions Ltd., and Coforge Ltd.—have publicly addressed the potential financial implications of the ongoing H-1B visa situation. Their statements, made in filings to stock exchanges on Sunday evening, reflect a cautious optimism amid regulatory changes.

Persistent Systems: Monitoring the Situation

Persistent Systems, which generates a substantial portion of its revenue from the U.S. market, stated that they do not foresee any significant impact from the recent executive order affecting H-1B visas. “We will continue to monitor the developments in this regard closely and will provide updates as appropriate,” the company noted, emphasizing their commitment to staying informed.

Sasken Technologies: Offshore Resilience

Sasken Technologies echoed a similar sentiment, asserting that the executive order would have little to no effect on their operations. The company highlighted its offshore-led business model, which allows for seamless service continuity. With the majority of its workforce engaged in engineering R&D and digital services from India, Sasken remains well-positioned to meet customer needs, irrespective of geopolitical shifts.

Cyient: Minimal Impact Anticipated

Cyient also reported that the H-1B visa changes would not materially affect its financial performance for the upcoming fiscal year. The company noted that only six employees were deployed on H-1B visas in the previous year, indicating a minimal reliance on this program.

Firstsource Solutions: Zero-Dependency Strategy

Firstsource Solutions, part of the RPSG Group, emphasized its “zero-dependency” on the H-1B program. The company stated that its operations and financials would remain unaffected, thanks to a strong focus on local hiring and a globally distributed execution model. This strategic approach allows Firstsource to navigate immigration regulations without significant disruption.

Coforge: Reduced Reliance on H-1B Petitions

Coforge, which reported that the U.S. contributed 53% to its overall revenue in the last fiscal year, revealed it filed only 65 new H-1B visa petitions, with 63 approved. The company noted a conscious effort to reduce reliance on new H-1B petitions for project staffing, reflecting a strategic shift in their operational model.

Market Reactions and Future Outlook

As Indian IT stocks brace for market reactions on Monday, the broader implications of U.S. President Donald Trump’s recent order, which restricts certain non-immigrant workers, remain to be seen. The administration clarified that a new $100,000 fee would not apply to previously issued H-1B visas or petitions submitted before September 21, 2025.

In the wake of these developments, shares of U.S.-listed Indian IT giants Infosys and Wipro experienced declines of up to 4% on Friday. However, with the clarifications provided by these companies, investors may find a more stable outlook as the situation unfolds.

As the landscape of U.S. immigration policy continues to evolve, these firms are poised to adapt, leveraging their global operational strategies to mitigate risks and maintain service excellence.