IT Staffing Firms (TCS, Cognizant, Infosis Underpay Developers by 80–100%
2 days ago
- #H1B visas
- #outsourcing
- #tech salaries
- Three companies—Cognizant, Tata Consultancy Services (TCS), and Infosys—dominate H1B visa filings, submitting over 21,000 petitions in 2026.
- Average salaries at these firms are under $105,000, nearly 40% lower than what tech giants pay for similar roles.
- The H1B system is being exploited by outsourcing firms, which hire workers as billable resources rather than permanent employees.
- Outsourcing firms predominantly pay H1B workers at lower wage levels (Levels 1-2), while tech giants pay higher levels (Levels 3-4).
- This model suppresses wages for H1B workers, depresses wages for American workers, and distorts the talent market.
- Regulatory scrutiny has led to a 70% decline in H1B approvals for these firms since 2015.
- A proposed salary-weighted lottery system could prioritize higher-paying positions, disrupting the outsourcing model.
- Policy reforms are needed to ensure the H1B program brings exceptional talent at market wages, not cost-arbitrage.