The US government's decision to suspend eight major technology companies, including Infosys, Tata Consultancy Services (TCS), Wipro, HCL Technologies and Cognizant, from the Permanent Labour Certification (PERM) programme has raised concerns among Indian IT professionals and the broader technology sector.
The other companies affected are Microsoft, Adobe and Capgemini. The US Department of Labour said it would not accept new or process pending PERM applications involving the companies. PERM is an important step for foreign workers seeking employment-based permanent residency in the US.
The move does not mean immediate job losses for Indian employees. It also does not cancel existing H-1B visas. Instead, it primarily affects the route through which eligible foreign workers can move from temporary employment to permanent residency in the US.
Will Indian jobs be affected?
The immediate impact on jobs in India is likely to be limited. The suspension is focused on the US green card process and does not prevent Infosys, TCS, Wipro, HCL or Cognizant from employing workers in India.
However, the move could influence where Indian IT companies hire and deploy employees in the long term.
If sending employees to the US becomes more difficult because of tighter immigration rules, companies may increasingly rely on their large delivery centres in India. This could mean more technology work being carried out from cities such as Bengaluru, Hyderabad, Pune, Chennai, Mumbai and Noida.
At the same time, fewer opportunities for US relocation could make the Indian IT job market more competitive for professionals who specifically want overseas assignments.
Could hiring in India increase?
Potentially, yes. If companies decide to handle more US projects from India instead of relocating employees to America, demand for India-based technology professionals could benefit.
However, this does not automatically mean a hiring boom. Companies could also respond by increasing automation, hiring locally in the US or restructuring their global workforce. The eventual impact will depend on how long the immigration restrictions remain in place and how companies adjust their business models.
What does it mean for Indian IT professionals?
For Indian professionals already working in the US, the bigger concern is the green card backlog and uncertainty over permanent residency.
Employees whose PERM applications have not yet been filed could face delays in establishing a priority date, which is particularly significant for Indian nationals because employment-based green card demand from India is already high.
For professionals currently working in India, the development could mean fewer opportunities for traditional US onsite assignments, but potentially more opportunities to work on US projects from India.
Could salaries and jobs in India be affected?
The impact could differ by skill level. High-demand professionals in areas such as artificial intelligence, cloud computing, cybersecurity, data engineering and advanced software development may continue to see strong demand because companies still need specialised talent.
For more general IT roles, however, greater reliance on India-based delivery could increase competition among workers. Companies could also become more selective about hiring and focus on productivity and specialised skills.
What does this mean for India's IT sector?
The US remains a crucial market for India's IT services industry. Any sustained tightening of immigration rules could therefore force Indian IT companies to rethink their workforce strategies.
More work being delivered from India could support India's position as a global technology and services hub. At the same time, companies may have to spend more on compliance, immigration management and local hiring in the US.
Indian IT stocks also came under pressure following the announcement, with Infosys and Wipro ADRs falling in US trading, reflecting investor concerns over the potential impact of tighter US immigration policies on the sector.
The US green card suspension is not an immediate threat to jobs in India. Instead, its biggest immediate impact is on Indian IT professionals in the US who are pursuing permanent residency.
For India, the longer-term outcome could go either way: more technology work and talent could remain in India, potentially supporting domestic employment, while fewer US relocation opportunities and greater competition could affect professionals seeking overseas careers.
The key factor will be whether the PERM suspension remains temporary or becomes part of a broader, long-term tightening of US immigration rules.
