The Trump administration’s decision to suspend eight major technology companies, including Tata Consultancy Services (TCS), Infosys, Wipro and HCL Technologies, from a key US green-card programme has created uncertainty for Indian professionals working in the country.
The US Department of Labor has stopped the companies from filing new applications under the Permanent Labor Certification (PERM) programme and halted the processing of pending applications involving them. Cognizant, Capgemini, Microsoft and Adobe are also among the companies affected.
The move could delay the green-card plans of employees sponsored by these companies. However, it does not automatically cancel their existing H-1B visas or revoke green cards already issued. Here is what the decision means for Indians.
PERM is a process that US employers generally need to complete before sponsoring foreign workers for certain types of employment-based green cards.
Under this process, employers must show that there are not enough qualified US workers available for the job and that hiring a foreign worker will not negatively affect the wages and working conditions of American employees in similar roles.
Once the application is approved, the employer can generally file another application, called Form I-140, with US Citizenship and Immigration Services (USCIS). The worker can move towards getting a green card when a visa becomes available and other requirements are met.
A green card allows someone to live and work permanently in the US. An H-1B visa, on the other hand, allows eligible foreign professionals to work in the country temporarily.
This means an Indian professional can legally work in the US on an H-1B visa while waiting for a green card. The new restrictions affect the process of obtaining permanent residency, not automatically the worker’s existing permission to stay and work.
The Trump administration has accused the affected companies of misusing employment-based immigration programmes and disadvantaging American workers.
US Vice President JD Vance has criticised technology companies for hiring foreign workers while American employees face layoffs.
Microsoft, one of the companies affected, has disputed the suggestion that its H-1B filings show it is replacing American workers on a large scale. It has said most of its H-1B filings in the previous fiscal year involved existing employees extending their visas or changing their immigration status.
The suspension is part of the administration’s wider scrutiny of foreign-worker programmes. How long the restrictions last will depend on the compliance requirements and the authorities’ decisions on the affected companies.
The impact depends on how far an employee has progressed in the green-card process.
The restrictions do not mean that every Indian employee working for these eight companies will lose their immigration status or be forced to leave the US.
Not simply because of this suspension.
The concern is greater for some workers approaching the general six-year limit on their H-1B status. Certain workers can extend their stay beyond six years under specific rules linked to their green-card applications.
If their green-card process is delayed at the PERM stage, it could complicate their ability to qualify for an extension, depending on their circumstances.
However, not everyone approaching the six-year limit will have to leave the country. Their options will depend on factors such as whether they have filed or received approval for an I-140 petition and whether they meet other eligibility requirements.
Indian professionals make up a substantial share of the US technology workforce and employment-based green-card applicants. Many have spent years working in the country while waiting for permanent residency.
The suspension could make it harder for affected employees to plan their careers. Changing employers may mean starting a new green-card process, depending on the stage of their existing application and their circumstances. Some workers may therefore hesitate to switch jobs or take up new roles if doing so could disrupt their immigration plans.
The uncertainty could also affect companies trying to retain experienced employees. Some professionals may consider returning to India or looking for jobs in other countries, although it is too early to know how many might do so.
Industry body Nasscom has said Indian technology companies have reduced their dependence on H-1B visas over the years and increased local hiring in the US. It has also described the number of employees moving from H-1B status to permanent residency through PERM as relatively limited.
This means the restrictions are unlikely to affect every Indian professional working in the US in the same way. The direct impact is on workers whose green-card applications depend on the affected companies, although the uncertainty could influence future hiring and sponsorship decisions.
Even before the latest restrictions, Indian nationals faced some of the longest waits for US employment-based green cards.
The US issues a limited number of employment-based green cards each year. Rules limiting the number available to applicants from each country, combined with high demand from India, have created a large backlog.
Nearly one million Indians are estimated to be waiting for employment-based green cards. Some projections suggest that an Indian applying under the EB-2 category in 2026 could theoretically face a wait of up to 179 years under certain assumptions about demand and visa availability. This is an estimate based on a particular set of assumptions, not an official prediction of how long every applicant will wait.
The backlog and the PERM suspension are two separate problems. The backlog exists because the number of available green cards is limited, while the suspension prevents affected companies from moving forward with an important stage of the application process.
For Indian workers whose employers are yet to complete PERM, the restrictions could mean additional delays before they can move to the next stage of an already lengthy process.
The immediate question is when the affected companies will be allowed to resume applications. Until then, employees relying on these companies for green-card sponsorship face uncertainty over when they can move closer to permanent residency in the US.
The affected companies occupy different positions in the technology industry. TCS, Infosys, Wipro, HCL Technologies and Cognizant have substantial IT services and consulting operations, while Microsoft and Adobe are major technology product companies. Capgemini is a global IT services and consulting firm. Their exposure to the suspension, and their ability to respond to it, may therefore differ.
For Indian IT services companies, one possible response is to increase reliance on professionals hired locally in the US. Companies may also reassess how they deploy employees across countries, how they structure project teams and how much they depend on transferring staff from India to US client assignments.
Some of these changes were already under way before the latest announcement. Indian IT firms have expanded local hiring in the US and have increasingly sought to manage the costs and uncertainty associated with immigration rules.
Reuters reported on October 9 that analysts expected a limited near-term impact on Indian IT firms, citing their reduced dependence on immigration programmes and the relatively small share of PERM applications attributed to Indian IT companies in the period examined. TCS also indicated that it did not expect the suspension to affect its workforce strategy materially.
That assessment is an important counterweight to predictions of an immediate industry-wide crisis. The suspension could be disruptive for individual employees without necessarily causing an equivalent shock to company revenues or operations.
However, a prolonged restriction could still affect recruitment and retention. If companies cannot offer some employees a predictable route to permanent residence, they may find it harder to persuade certain professionals to accept US assignments or remain in them for the long term.
Employers may also face additional legal, compliance and workforce-planning costs as they respond to the restrictions and increased scrutiny of their immigration practices.
Whether these costs ultimately translate into more local hiring, changes in project delivery or a redistribution of work between the US and India will depend on the duration of the suspension and the responses of individual companies.