Washington/New Delhi, October 9, 2026: The US government has suspended several major technology and IT outsourcing companies, including TCS, Infosys, Wipro, HCL Technologies and Cognizant, from the Permanent Labor Certification (PERM) programme, a key step in the employment-based Green Card process. The move comes as the Trump administration intensifies scrutiny of foreign-worker hiring and alleged misuse of immigration programmes.
Which Companies Have Been Suspended?
The companies reportedly affected include Cognizant, Infosys, Tata Consultancy Services (TCS), Wipro, HCL Technologies and Capgemini, along with Microsoft and Adobe.
The US Department of Labor said it would not accept new PERM applications or process pending applications involving these companies during the suspension.
What Is the PERM Programme?
PERM is a labour-certification process that many US employers must complete before sponsoring a foreign worker for permanent residency.
Employers generally need to demonstrate that there are not enough qualified US workers available for the position and that hiring a foreign worker will not adversely affect the wages or working conditions of American employees.
Indian Workers Could Face Delays
The suspension is particularly significant for Indian professionals employed by the affected companies, as applicants from India already face a lengthy backlog in employment-based Green Card processing.
Employees whose employers have not yet filed their PERM applications may face delays in beginning the process and obtaining a priority date until the restrictions are lifted.
Existing H-1B Visas Are Not Cancelled
The action does not mean that all H-1B visas held by employees of these companies have been cancelled.
PERM and H-1B are separate immigration processes. H-1B is a temporary work visa, while PERM is commonly part of the process through which employers sponsor eligible foreign workers for permanent residency.
US Cites Alleged Fraud and Worker Displacement
US officials have linked the move to investigations into the alleged misuse of employment-based immigration programmes.
The administration has argued that some companies have relied heavily on foreign workers while reducing jobs held by Americans. However, the allegations and their application to individual companies remain subject to investigation.
Green Card Backlog Makes the Move More Significant for Indians
For Indian applicants, delays in obtaining a PERM priority date can be particularly consequential because employment-based Green Card queues already stretch back many years.
The October 2026 Visa Bulletin lists the EB-2 final-action date for India as November 1, 2013, highlighting the scale of the existing backlog.
Indian IT Firms See Limited Immediate Business Impact
Analysts say the immediate financial impact on Indian IT companies could be relatively limited because major firms have increased local hiring in the United States and reduced their dependence on immigration-related employment pathways.
TCS has said the suspension is not expected to affect its workforce strategy or client engagements.
Long-Term Talent Retention Could Become Harder
Although near-term revenue may not be significantly affected, the suspension could make it more difficult for affected companies to retain skilled foreign employees in the United States over the longer term.
Professionals seeking permanent residency may increasingly prefer employers that can continue sponsoring them through the Green Card process.
Fresh Immigration Pressure on India’s IT Sector
The latest move adds another challenge for India’s IT services industry, which is already adapting to tighter US immigration rules, the growing impact of artificial intelligence and changing client spending patterns.
Employers and thousands of Indian professionals working in the United States will closely monitor how long the suspension remains in place and what emerges from the federal investigations.
Source: Reuters, The Indian Express
Supreme News Network
