IBM has stated that they are ending the sponsorship of visas for most of their consulting positions, which cover over 150,000 employees. This decision was made amid increased scrutiny by the US regarding foreign technology contracting. The announcement came just a few weeks after the Trump administration suspended the permanent employment authorization (PEA) process for many outsourcing and third-party service companies, including Microsoft, Adobe, and Cognizant, according to information that has influenced IBM's decision.

IBM's announcement is also due to an increasing trend towards changing visa sponsorship strategies, which has been occurring in recent years. It is important to note that IBM used the H-1B visa system to resolve skill gaps in its consulting team but participation in sponsorship has significantly decreased in recent years, according to an IBM Reuters expert. IBM opted to stop sponsoring most of its consulting positions as "the capabilities of the team and the needs of the clients have changed," added an IBM Reuters expert.

Employees affected by IBM's decision can work outside the US or leave before the next year, as Bloomberg News reported citing a document seen by IBM Reuters. Last year, the Office of the Captain announced a $100,000 tax on new H-1B visas. The IBM decision is considered in connection with the resumption of a visa sponsorship tax, which has led to further restrictions on foreign technology contracting in the US.