Cognizant Technology Solutions (CTSH), Tata Consultancy Services, Infosys (INFY) and other multinational staffing companies will be impacted by President Donald Trump's $100,000 fee for new H-1B workers, Bloomberg reported Monday, citing its own analysis.
In the period of May 2020 to May 2024, nearly 90% of new H-1B hires at those three companies were approved at US consulates, and the workers would cost each of the companies hundreds of millions of dollars if the rule was in effect at the time, according to the report.
Business groups and states have filed separate legal challenges to the H-1B fee, but many firms have already adjusted their hiring plans, according to the report. The fee will lead to a steep decline in visa demand and push more jobs overseas, the report said, citing industry observers.
In an emailed statement to MT Newswires, Cognizant said the fee "is expected to have limited near-term impact on our operations."
"Cognizant's scale and global footprint provide multiple levers to continue to serve our clients in the US and globally," the company said.
Tata Consultancy, and Infosys did not immediately reply to a request for comment from MT Newswires.
(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)
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