Due to delays in US Visa processing, Indian IT service providers are hiring more subcontractors, adding costs.
The US has over 800,000 job vacancies for computer occupations and is the largest market for Indian IT providers.
The current share of contracting among the top Indian IT companies is 6-8%, while it is 3% overall in the Indian tech industry.
The chief executive of IT staffing portal techfetch.com, Prabakaran Murugaiah, said that the lack of technologically skilled talent in the US are also affecting subcontracting firms.
IT service companies find it hard to manage onsite subcontracting costs as global technology clients insist on employees returning to the office.