India's technology industry faces another immigration-related challenge after the Donald Trump administration suspended Infosys, Tata Consultancy Services (TCS), Wipro and HCL Technologies, along with four other global technology companies, from a key US programme used to sponsor foreign employees for permanent residency.
The October 8 decision also covers Cognizant, Capgemini, Microsoft and Adobe. It prevents the companies from submitting new applications or securing further processing of pending applications under the Permanent Labor Certification (PERM) programme, an important stage in the employment-based green card process.
The move could have significant consequences for Indian technology professionals working in the US, particularly those who depend on employer sponsorship to move from temporary work visas to permanent residency. It also adds to the compliance and workforce-planning challenges facing India's IT services industry.
US Vice President JD Vance and Labour Secretary Keith Sonderling announced the restrictions as part of the administration's broader efforts to tighten oversight of employment-based immigration and prioritise domestic recruitment.
The administration has accused major technology companies of misusing foreign-worker programmes while reducing their American workforce.
Vance specifically criticised Microsoft's hiring practices, alleging that the company had recruited foreign workers even as it laid off American employees.
PERM, short for Permanent Labour Certification, is administered by the US Department of Labour. It is generally a preliminary requirement for employers sponsoring foreign workers for employment-based green cards under the EB-2 and EB-3 categories.
Employers normally have to demonstrate that:
There are insufficient qualified, willing and available US workers for the position.
Hiring the foreign worker will not adversely affect wages and working conditions of similarly employed US workers.
The employer has complied with the applicable recruitment and wage requirements.
Once the labour certification is approved, the employer can generally proceed with an immigrant petition through US Citizenship and Immigration Services (USCIS).
PERM approval does not automatically grant permanent residency. Applicants must complete further immigration procedures and, where applicable, wait for an immigrant visa number to become available.
The immediate concern is for employees of the affected companies who have yet to complete the PERM stage of their green card applications.
With the US Labour Department refusing to accept new applications or process pending cases involving these employers, some workers could face prolonged uncertainty over their permanent residency plans.
The potential consequences include:
Delays in starting employer-sponsored green card applications.
Pending PERM applications remaining unprocessed during the suspension.
Greater uncertainty over career and immigration plans for workers awaiting certification.
Additional workforce-planning and compliance challenges for IT companies operating in the US.
The actual impact on individual applicants will depend on their immigration category, application stage and the duration and implementation of the restrictions.
Importantly, the measure does not amount to a blanket suspension of all green card applications filed by Indian nationals. It targets the PERM process involving the specified employers.
No. The suspension concerns permanent labour certification and does not automatically invalidate existing H-1B visas.
H-1B visas allow US employers to recruit foreign professionals for specialised occupations, while green cards provide a route to permanent residency. Although the two processes are often connected, they operate under different immigration rules.
Employees holding valid H-1B status can generally continue working in accordance with their existing visa conditions. However, those planning to transition to permanent residency through a suspended employer could face additional delays.
For some workers, delays in reaching particular stages of the green card process may also complicate future H-1B extensions. The consequences depend on individual circumstances and the relevant immigration provisions.
India is among the biggest sources of skilled technology professionals employed in the US under the H-1B programme.
Companies such as TCS, Infosys, Wipro and HCL Technologies have long served American clients through a combination of employees based in India and professionals working at client locations in the US.
The US is also a major revenue-generating market for Indian IT services companies.
The latest restrictions could therefore have implications beyond employees' immigration applications.
Companies may need to:
Increase recruitment of American citizens and permanent residents for roles in the US.
Reassess long-term employee deployment and relocation plans.
Strengthen immigration compliance and recruitment documentation.
Review the impact of immigration restrictions on employee retention and project execution.
These are potential operational responses rather than confirmed decisions by the affected companies.
The suspension comes against the backdrop of lengthy waiting periods for many Indian nationals seeking US permanent residency.
Employment-based green cards are subject to annual limits and country-specific allocation rules. Demand from Indian applicants in certain categories substantially exceeds the available supply.
As a result, many Indian professionals already face extended delays between beginning the green card process and becoming eligible for permanent residence.
The PERM restrictions could add another obstacle for employees of the affected companies who have not yet completed labour certification.
Workers whose immigration petitions have progressed beyond PERM may face different circumstances. The announcement does not establish that previously approved green cards or labour certifications have been revoked.
Much will depend on how long the US administration keeps the suspension in place and whether the affected companies challenge the restrictions or seek to resolve the concerns raised by regulators.
The precise duration of the suspension has not been clarified.
For Indian technology professionals, the immediate priority will be understanding the status of their applications and the possible implications for their employment and immigration timelines.
For Indian IT companies, the bigger challenge could be managing a skilled workforce across borders as US immigration policy becomes increasingly restrictive.