Timing of NASSCOM’s Response
The industry body’s statement arrives as the U.S. government moves away from the long-standing random lottery that selected beneficiaries for certain work visas. The change shifts how applicants are chosen and immediately raises questions for companies that depend on foreign talent for technical and professional roles.
What changed in the visa selection system?
For years, the random lottery was the primary method used to allocate high-demand work visas under annual caps. That process selected applications by chance when demand exceeded supply. The recent policy replaces that random selection with a new system intended to prioritize certain applicants over others.
While the details and implementation timelines may vary, the main goal behind the shift is to create a selection method that favors higher-skilled or higher-paid workers, with the stated aims of protecting domestic workers and encouraging higher wage offers from employers.
Why this matters to Indian IT firms and talent suppliers
Businesses that have relied on the previous lottery-based system face immediate uncertainty. Large-scale users of these visas, particularly firms that recruit specialized tech professionals from abroad, must reassess hiring plans, costs and talent pipelines.
- Recruitment risk: Firms that counted on the lottery to secure specific candidates may see lower success rates under a merit-based or wage-priority system.
- Cost pressure: If selection favors higher-paid applicants, employers may need to raise wages to improve their success odds — raising labor costs and altering profit margins.
- Operational shifts: Companies might accelerate offshore delivery or reorganize teams to reduce reliance on foreign-based staff relocating to the U.S.
- Startups and smaller firms: Younger companies that compete for specialized talent but cannot match large firms’ wage offers may find it harder to hire through the visa route.
Immediate business impacts
In the short term, expect a range of tactical responses. Some companies will increase local hiring and training budgets. Others will push more work to remote or offshore teams. There is also likely to be a rise in strategic workforce planning focused on resilience:
- Expanding local recruitment and apprenticeships to build domestic talent pools.
- Investing in upskilling and reskilling current employees to fill higher-skilled roles.
- Revisiting compensation structures to remain competitive under the new selection criteria.
- Enhancing remote collaboration tools and processes to support distributed teams.
Opportunities amid policy change
Policy shifts often create new openings as well as challenges. Companies that can adapt quickly may gain advantage:
- Offshoring and nearshoring: Firms might scale delivery centers in other countries where they already have talent and infrastructure.
- Automation and productivity: Firms that invest in automating repetitive tasks can reduce dependency on headcount-based models.
- Diversifying talent sources: Broadening recruitment to multiple countries and tapping into less-saturated markets can lower risk.
How companies should respond strategically
Practical steps can help companies manage the transition without disrupting business growth:
- Review workforce strategy: Conduct immediate audits of roles that rely on visa programs and identify alternatives.
- Boost local talent pipelines: Partner with universities, vocational programs and industry groups to build future-ready skills domestically.
- Engage with policymakers: Industry associations and employers should communicate practical impacts to regulators and propose policies that balance national priorities with business needs.
- Plan for cost scenarios: Model wage increases and their effect on bids, contracts and margins to set realistic budgets.
- Strengthen remote work models: Optimize processes and technology to support distributed teams and cross-border delivery.
What to watch next
Expect further clarification from regulators on selection criteria, implementation dates and transitional arrangements. Businesses should monitor official guidelines closely and be ready to adapt hiring and compensation policies. Dialogue between industry groups and policymakers will be important in shaping fair and workable rules moving forward.
Bottom line
The end of the random lottery marks a significant shift in visa policy. For firms that rely on international talent, the change requires quick strategic thinking: balance short-term adjustments with long-term investments in talent, automation and operational flexibility. Those that act decisively can reduce risk and find new pathways for growth amid evolving immigration rules.