India’s $280-billion information technology industry is moving into 2026 while managing visa related challenges and global trade uncertainty, even as it undertakes its most ambitious expansion in artificial intelligence and global capability centres. Tighter scrutiny of the United States H-1B visa programme, including a proposed fee of $100,000 for new visas and fears of a possible 25 % outsourcing levy, has complicated cross border service delivery for Indian technology firms. At the same time, companies are actively reducing dependence on onsite staffing, although the US continues to be the largest export destination for the sector.
The visa related proposals created sharp market volatility towards the end of 2025, disrupting employee travel plans and putting pressure on IT stocks.
Subsequent clarifications provided limited relief, but new concerns emerged around social media screening and unpredictable processing timelines. Analysts caution that significantly higher visa costs could add hundreds of millions of dollars to operating expenses for large IT players, further accelerating the shift toward offshore delivery models and non US hubs.
Industry leaders maintain that Indian IT companies have already reduced risk exposure by increasing local hiring in the United States and strengthening delivery capabilities within India. While geopolitical tensions and trade frictions have clouded near term prospects, they are also encouraging multinational corporations to expand their global capability centres in India to manage regulatory risk and protect profit margins.
The announcement of a proposed $100,000 fee on new H-1B visas in September triggered widespread concern, affected travel schedules and weighed heavily on technology stocks.
Although the clarification that the fee would apply only to new visas offered some reassurance, renewed focus on social media checks again raised fears of delays and uncertainty. Experts note that such policy developments are pushing firms to move more work offshore and reinforce delivery networks across India and other non US locations.
Industry representatives have reiterated that the H-1B programme was intended as a temporary solution to address skill shortages in the US. Over the years, Indian IT majors have consciously lowered their dependence on these visas by expanding local recruitment and investing in domestic talent. High skill professionals, particularly in artificial intelligence and advanced technologies, are increasingly seen as critical to innovation, competitiveness and long term growth in the global technology ecosystem.
After a subdued start to 2025, client spending gradually improved as artificial intelligence initiatives matured and key sectors such as banking, financial services and insurance began to stabilise worldwide. Global technology giants announced multibillion dollar investments in large scale data centres and sovereign AI infrastructure in India, reinforcing the country’s role as a strategic digital hub. AI adoption, when combined with India’s digital public infrastructure, is enabling deployment at population scale across education, industry and agriculture.
Worldwide investment in artificial intelligence crossed $200 billion, even as concerns surfaced about market overheating due to concentrated funding among hyperscalers, startups and chipmakers.
Infosys raised its revenue guidance for FY26 and approved its largest ever share buyback, while HCL Technologies also improved its services revenue outlook, reflecting cautious optimism.
The industry also witnessed structural changes and workforce realignments. Tata Consultancy Services announced plans to reduce around two per cent of its global workforce as part of a broader organisational transformation focused on AI deployment, technology upgrades and market expansion. Across the sector, firms intensified GenAI training, redesigned delivery models using automation and AI agents, and pursued mergers and acquisitions to strengthen capabilities. Despite rapid adoption, full scale monetisation of AI remains a work in progress.
India has further strengthened its position as a preferred destination for global capability centres, with major cities attracting banks, insurers, technology firms and multinational corporations. The GCC segment is projected to reach $105 billion by 2030, supporting millions of jobs across thousands of centres. Industry experts expect this trend to accelerate in 2026, supported by improving discretionary spending, stable budgets and targeted investments in next generation technologies.
Having navigated the volatility of 2025, the Indian IT industry enters 2026 with adaptability as its strongest asset. Its competitive edge will depend on deepening AI leadership, building resilient global delivery networks and remaining agile in the face of ongoing macroeconomic and geopolitical uncertainty.
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