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Home ›› Technology ›› Software ›› Harsh reality for H-1B visa returnees: Changed Indian IT hiring landscape, lower salaries and fewer jobs

Harsh reality for H-1B visa returnees: Changed Indian IT hiring landscape, lower salaries and fewer jobs

H-1B visa holders returning to India amid US layoffs and tighter immigration policies are encountering a dramatically changed IT hiring landscape. With active tech job openings down 17% year-on-year and compensation often far below US levels, returnees must adapt to a market that prizes specialised AI, cloud, and cybersecurity skills. Global Capability Centres in Bengaluru, Hyderabad, and Gurugram offer some hope, but experts say the shift is structural, not cyclical.

iG
iGEN Editorial
July 16, 2026
Harsh reality for H-1B visa returnees: Changed Indian IT hiring landscape, lower salaries and fewer jobs

H-1B visa holders returning to India due to layoffs or uncertainties surrounding the Donald Trump administration's immigration policies are facing a harsh reality: jobs back home are not readily available. US technology giants like Amazon, Microsoft, and Meta have laid off thousands, and Indians have been hit hard. These returnees are coming back to a technology job market that has seen hiring fall to a 28-month low.

The Scale of Returns

According to data from Xpheno quoted in an ET report, about 7,300 professionals have returned from the US so far in 2026. The number stood at 15,000 in 2025 and 9,700 in 2024, and these numbers are expected to rise. The return wave is fueled by layoffs and tighter visa guidelines under the Trump administration.

Year Number of Returnees
2024 9,700
2025 15,000
2026 (so far) 7,300

Why Returnees Struggle

Experts note that the lack of adequate skills is not the core problem — it's the job market. “India's technology hiring environment has become more selective, with organisations prioritising skills that directly support innovation, AI adoption and business transformation,” says Roopank Chaudhary, Partner and Rewards Consulting Leader, Talent Solutions, India, for Aon. He adds that many returnees face a mismatch between compensation expectations developed overseas and current hiring realities in India.

Neeti Sharma, CEO of TeamLease Digital, confirms the slowdown: “Companies in India are hiring much more selectively than they were two or three years ago. Overall tech hiring has slowed, with active tech job openings down around 17% year-on-year in mid-2026.” She notes that having a big global brand on a résumé is valuable but insufficient, and returnees often have to adjust to salaries significantly lower than their US earnings.

"The challenge is less about the quality of talent and more about market dynamics." — Experts quoted by TOI.

Skills in Demand

The job market is undergoing a structural shift, driven partly by AI and automation. Employers are prioritising very specific skills in AI, cloud, cybersecurity, and product engineering, according to Neeti Sharma. AI hiring grew 16% year-on-year, even as overall tech hiring contracted. Roopank Chaudhary of Aon explains that AI is contributing to a shift in hiring demand: organisations use AI and automation to streamline routine work, reducing demand for traditional roles while increasing demand for specialised talent.

The GCC Silver Lining

One ray of sunshine is the rapid rise of Global Capability Centres (GCCs) in India, which are serving as hiring hubs. Bengaluru, Hyderabad, and Gurugram continue to be key locations. However, experts caution that finding roles with compensation comparable to US salaries is likely to take longer. A growing pool of experienced domestic talent is also competing for a limited number of senior roles.

For enterprise technology leaders, the takeaway is clear: the Indian IT talent pool is becoming more selective and skill-driven. Hiring decisions now demand proof of specialised expertise and commercial impact, not just brand-name experience. Returnees must recalibrate expectations, while companies gain access to a highly skilled workforce — but only if they can offer competitive roles in emerging tech domains.


Sources: Business-Today

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