The 1990s saw the birth of a transnational information technology workforce of Indians working in the U.S. and in India. Another transnational farm workforce is that involving Latin Americans and the American Southwest, with its origins before WW 2. A shared characteristic is circular migration – recycling between two countries. In sharp contrast with the Southwest U.S. transnational workforce, the transnational Indian IT workforce supported important entrepreneurial activity in both the U.S. and India, helping India rise quickly with the growth of the internet to being a major force in the economic growth of India. Between 2000 and 2024, the IT professsional workforce in India grew ten times.
The role model of the transactional workers is an Indian who graduated from the University of Colorado at Boulder with a master’s degree in mechanical engineering, He worked in the U.S. for six years as a computer engineer with an H-1B visa won by visa lottery. He worked as head of product at Compile Inc., a data intelligence company founded in 2012 and based in Bangalore and Menlo Park. McKesson bought Compile in 2024.
The story of this transnational workforce is not the traditional story of an immigrant group migrating to another country, a few finding an economic niche, and through chain migration building a distinctive, durable presence. This was the case with Indians, starting in the 1970s, establishing a role in the American hotel industry. In this case of IT, symbiosis involving both countries is at the core of the story.
1960s – 1990
US immigration restrictions were relaxed by the Hart-Cellar Act of 1965. A previously existing provision for temporary visa for workers with expertise was revised in 1990 to create the current H-1B visa. India’s educational centers of excellence, institutes of technology, science, statistics and management expanded. American firms begin to install STEM centers in India in the 1980s to take advantage of the Indian workforce. Indian entrepreneurs in Silicon Valley were at that time few — notably Vinod Khosla, He was born in Delhi,1955, graduated from the Indian Institute of Technology (IIT) Delhi, Carnegie Mellon University and Stanford Business School, and co-founded Sun Microsystems in 1982)
1990: 500,000 Indian born persons resided in the U.S.
By the mid-1990s, many H-1B visas were already going to Indian programmers. China never had a significant H-1B presence due to language limitations. Many H-1B workers were recruited to handle Y2K code remediation. Indian enrollment in U.S. graduate STEM programs began to rise but was outnumbered by Chinese students.
Outsourcing: GE, Citibank and other American companies began sending IT work offshore to India. The early Indian firms TCS, Infosys and Wipro secured their first large U.S. contracts. An American model of a U.S. based client team plus a large offshore team was born. Before 1990 TCS had already begun servicing American firms with its India-based staff. By the mid 1990s, it began to scale up its use of H-1B visas for U.S. based placement. Indian firms learned how to become staffing firms for American employers using H-1B.
Entrepreneurism: 7% of Silicon Valley firms founded 1980–1998 had Indian CEOs/founders. According to a 1999 study, immigrants accounted for one-third of the scientific and engineering workforce in Silicon Valley. Indian and Chinese CEOs lead one-fourth of high-tech firms in the region. The concept of “brain circulation” emerged, with skilled immigrants returning to their home countries while maintaining ties to California.
Acceleration of ties between the two countries fostered the growth of the IT industry and IT workforce culture in India. H-1B veterans returned to India with direct experience with American IT management and operations. Indian educational institutions began to steer their programs to reflect the American IT sector.
The Indus Entrepreneurial (TiE) Network was founded. In its own words (2025), “TiE ranks among the world’s largest ecosystems for innovation, entrepreneurship, and economic development. Founded in 1992 in Silicon Valley by a group of successful entrepreneurs and corporate executives with roots in the Indian sub-continent, today TiE Chapters worldwide have become a vibrant platform for entrepreneurs, professionals, industry leaders, and investors. With its network of over 33,000 members globally (including over 3,000 charter members) in 62 chapters across 14 countries.”
2000: 0ne million Indians resided in the U.S.
The dot-com boom created huge demand for IT labor. Congress temporarily raised the H-1B cap to 195,000 (1999–2003). Indians took a growing share, surpassing 50% of H-1Bs by the late 2000s. Indian STEM enrollments in American higher ed skyrocketed, especially in computer science. By 2005, India had become the second-largest source of international students (still after China), with most in STEM graduate programs. By the end of the decade, over 100,000 Indians were working in the U.S. using H-1B visas. Over time, a path for an H-1B visa holder to gain a green card was established.
Offshoring becomes mainstream: The 2000s cemented India as the world’s IT back office. It captured 60% of the global offshoring market. U.S. firms sent large volumes of software development, call centers, and business processes offshore. TCS, Infosys, and Wipro became multibillion-dollar firms serving mainly U.S. clients. The business model was cost arbitrage, with American IT wages multiple that of Indian wages.
During the 2000s, American companies began to invest in its own proprietary centers in India. Microsoft established a small footprint in the 2000s. Its India-based workforce grow to over 10,000 in the 2010s and today is in the mid 20,000s. These “global capability centers” have coped with the adverse impact of disruptions in American work visas.
2010: two million Indians resided in the U.S.
Ever more intense use of H-1B visas by Indians took place, many of them working for the major Indian staffing firms. The share of H-1B visas going to Indians soared to 70% and the number of active beneficiaries rose to over 200,000. A 2010 federal government memo started a crackdown. Infosys made a $34 million settlement in 2013 for visa fraud, yet its enrollments went up. High-profile cases, like Disney’s 2015 layoffs of American IT workers replaced by H-1B holders from TCS and HCL, fueled a backlash. The first Trump administration raised denial rates to 24% by 2018 and proposed wage hikes. However, clever manipulation of the H-1B rules and the connivance of American clients enabled legal placements at a lower wage than that paid to an American worker.
Middle class Indian-American suburban communities sprung up. Cupertino, CA, hosts Apple headquarters. Cupertino today is 64% Asian. 77% of workers residing there have management or professional jobs. The city front-ended the rise of the Indian population due to Silicon Valley. In 1990, 4% were Indian-Americans; in 2010, 23%. An Indian-American became mayor.
Monroe Township, NJ, is the largest and most diverse South Asian cultural hub in the United States. The Township celebrates Diwali as a Hindu holiday. The County prints election ballots in English, Spanish, Gujarati, Hindi, and Punjabi.
Sugar Land, in Fort Bend County, near Houston, has many Hindu temples, Sikh gurdwaras, and cultural associations, and hosts large Diwali festivals. The share of the population that is Asian rose from 10% in 2010 to 35% in 2020.
2020: three million Indians resided in the U.S.
At the outset COVID-19 pandemic, Trump suspended new H-1B entries. The Biden administration lifted the ban in 2021. New H-1B visas for TCS and Infosys fell 20–30% by 2023–2024. These firms today have diversified and depend less on the H-1B market in their business model. In September, 2025 Trump set a $100,000 one-time fee on new H-1B applications. Many Indians use their student F1 visa for one-to-three-year work stays — this program is vulnerable.
Indian IT firms are reported to be increasing their non H-1B staffs in the U.S. These non H-1B staffs in total may exceed 100,000. Meanwhile, American firms employ several hundreds of thousand Indians in their India offices. Examples: IBM with more than 100,000 and Oracle with 40,000.