H-1B visa dominance has shifted in the US — and not to tech giants

Major banks and telecom firms have emerged as top recruiters of new H-1B visa workers in recent years, surpassing some of Silicon Valley’s biggest names, according to newly released federal data reviewed by Bloomberg. From May 2020 to May 2024, companies like Citigroup, AT&T, and Capital One hired thousands of foreign workers through staffing and outsourcing agencies, reshaping the traditional profile of H-1B sponsorship in the US.

While the H-1B visa program was initially designed to help US tech firms attract global talent for specialized roles, Bloomberg’s investigation reveals that a wide range of companies are now using the program to bring in lower-paid IT workers indirectly. These “visa middlemen” now account for nearly half of the 85,000 new visas issued annually.

Non-Tech firms lead in indirect hires
Citigroup Inc. added over 3,000 new H-1B workers during the four-year period—more than Nvidia, Oracle, or Qualcomm, Bloomberg reported. Most of these workers were not direct employees but contractors hired through third-party firms. Nearly two-thirds came via outsourcing companies like Tata Consultancy Services Ltd. (TCS), which is under investigation by the US Equal Employment Opportunity Commission for alleged discrimination against non-Indian workers.

“Allegations that TCS engages in unlawful discrimination are meritless and misleading. TCS has a strong track record of being an equal opportunity employer in the US, embracing the highest levels of integrity and values in our operations,” TCS told Bloomberg in a statement .

"We supplement our 71,000 US workers with highly skilled H-1B visa holders to address specific, timely needs. When we do so, we follow relevant laws and regulations, including anti-discrimination laws,” Citi said in a statement.

Multiple registrations and lottery loopholes
The report highlights how some staffing firms manipulated the H-1B visa lottery through “multiple registration” practices—submitting multiple entries for the same worker via different entities. Bloomberg noted that this tactic gave staffing firms a greater share of visas and was labeled fraudulent by USCIS in a 2023 report.

Among the top end-users of workers sourced this way were Capital One, Verizon, Walmart, AT&T, and USAA, according to the data analyzed by Bloomberg. Capital One received H-1B contractors from 429 different staffing firms—361 of which submitted multiple registrations.

A Capital One spokesperson told Bloomberg that the company is unaware of any government claims of visa fraud against its vendors and would “take appropriate action” if such issues came to light.

Pay disparities between contractors and direct hires
The Bloomberg data analysis found that H-1B contractors were paid significantly less than their directly hired counterparts. Software developers hired through staffing agencies earned a median salary of $94,000, while those directly employed earned $142,000—even when adjusting for job title, education, and experience.

“If the whole purpose of this program is to hire the best of the best, then why aren’t we seeing higher wages?” Susan Houseman of the W.E. Upjohn Institute, told Bloomberg, after reviewing the findings.

“They’re going to pay as little as they can legally,” Ron Hira, a Howard University professor, told Bloomberg. He has long argued that the current system undercuts both US and H-1B workers.

Limited job mobility for visa workers
Contract workers on H-1B visas often face limits when it comes to speaking out about wages or changing jobs. Their visa status is tied to the staffing agency, which means losing the job could also mean losing the right to stay in the US. “There’s a lot of fear,” said Daniel Hutchinson, an attorney at Lieff Cabraser Heimann & Bernstein. He added that employment contracts often include arbitration clauses, making legal action more difficult.

Hutchinson previously represented 12,000 H-1B workers in a class action settlement against TCS. The lawsuit alleged illegal deductions from salaries and forced surrender of tax refunds. “In 2013, to avoid the cost and expense of further litigation, TCS agreed to settle the litigation,” a spokesperson said. “TCS admitted no wrongdoing and none was found by the court.”