U.S. Green Card curbs could accelerate India’s shift to high-value tech work: Karnataka’s IT Minister

What change has the U.S. made to the PERM program, and why does it matter to Indian IT companies?

The Trump administration’s suspension of the Permanent Labour Certification, or PERM, programme affects a key route used in many employment-based Green Card applications. The change matters because Indian technology companies depend on skilled employees who may need long-term U.S. status and the ability to work at client locations.

For an Indian IT services company, the restrictions could make it harder to retain experienced professionals and move Indian employees onsite. Firms may face higher U.S. operating costs, reduced staffing flexibility, and more complicated client engagement when projects require workers physically present in America.

The impact could also create an unexpected opportunity for India. If deploying engineers to the U.S. becomes more difficult and expensive, companies may assign more research, engineering, product development, and artificial-intelligence work to India. That could strengthen Global Capability Centres and expand India’s role in global innovation, although traditional outsourcing operations would still face pressure.

What is PERM labor certification, and how does it fit into the U.S. employment-based Green Card process?

PERM, short for Permanent Labour Certification, is a U.S. employment process connected to many employment-based Green Card applications. It matters because it supports the longer-term immigration pathway for foreign professionals employed by U.S. companies or working through employers with U.S. operations.

In this context, the certification is not the Green Card itself. It is an important step before many employment-based applications can proceed. If access to that step is restricted, Indian technology professionals may find it harder to pursue permanent residency. Employers may also struggle to retain people whose future in the United States depends on a stable immigration pathway.

The article links the change to wider workforce problems. Companies could face difficulty keeping experienced employees and deploying personnel onsite. The result may be higher costs and less flexibility for Indian IT firms, while multinational companies consider placing more research, engineering, and product work in India instead.

Which Indian technology workers and companies are most directly affected by tighter rules for permanent residency and onsite deployment?

The workers most directly affected are Indian technology professionals pursuing permanent residency in the United States. Experienced employees are especially important because companies are trying to retain them while also meeting client needs. Workers whose roles require a physical presence in America face added uncertainty when immigration and mobility rules tighten.

The companies most exposed are Indian IT services and major outsourcing firms with U.S. operations. Their business often involves moving Indian employees to client locations, supporting projects onsite, and keeping skilled staff available over long periods. Restrictions can interfere with all three activities.

The article also points to a broader group of affected employees and employers. Service providers may struggle to keep senior professionals, while multinational companies may reconsider where high-value work is performed. Some research, engineering, product development, and artificial-intelligence roles could move to India, but jobs requiring direct U.S. presence would remain difficult to relocate.

How important is the U.S. market and onsite work to the business model of India’s IT services industry?

The article does not quantify the U.S. market’s share of India’s IT services industry. It gives no revenue, employment, or client figure. It does, however, describe the United States as a major operating environment for Indian technology firms and highlights the importance of deploying personnel to U.S. client locations.

That onsite model connects Indian companies to customers who need workers physically present. When immigration rules make those moves harder, firms may face higher operating costs, difficulty retaining experienced professionals, and less flexibility in staffing projects. Employees whose roles require U.S. presence may also be affected directly.

The business model could therefore become more complex rather than simply disappear. Companies may keep serving U.S. clients while assigning more research, engineering, product development, analytics, and artificial-intelligence work to India. The shift would test whether Indian firms can balance overseas delivery needs with higher-value domestic capabilities.

What happens to companies, workers, and client projects when it becomes harder and more expensive to move Indian engineers to the United States?

When moving Indian engineers to the United States becomes harder and more expensive, companies lose some flexibility in how they staff client projects. They may struggle to place the right workers onsite, retain experienced professionals, and maintain arrangements that depend on physical presence in America.

The immediate mechanism is straightforward. Immigration restrictions can complicate employee mobility, while additional costs make U.S. operations more expensive. Client engagement may become harder when a project requires engineers at a U.S. location. Firms may need to keep more work in India or redesign how teams support customers.

The longer-term result could be a geographical shift in technology work. Companies may assign more research, engineering, product development, analytics, and artificial-intelligence responsibilities to India, where substantial engineering talent is available. Yet workers and projects that genuinely require U.S. presence would continue to face disruption and uncertainty.

Why might multinational companies move more research, engineering, and artificial-intelligence work to India instead of sending employees to the U.S.?

Multinational companies may move more research, engineering, product development, and artificial-intelligence work to India because sending engineers to the United States could become more difficult and costly. India already has a substantial pool of engineering and technology talent, giving companies a local base for complex work.

The key mechanism is changing workforce mobility. If employees cannot move easily or secure longer-term status, companies can keep more teams in India while still developing products and technology for global operations. This can reduce dependence on U.S. deployment and help companies use existing Indian facilities and talent.

The shift could strengthen Global Capability Centres in Indian cities. These centres already undertake technology development, analytics, product engineering, and research. Tighter mobility conditions may bring them more global research and development mandates and increase domestic demand for senior technology professionals. The potential gains depend on how companies respond.

What are Global Capability Centres, how widespread are they in India, and how do they differ from traditional IT outsourcing?

Global Capability Centres, or GCCs, are centres that multinational companies expand in Indian cities to perform important technology and business functions. The article identifies technology development, analytics, product engineering, and research among their activities. They matter because they can hold work that goes beyond the traditional outsourcing model.

The article does not give a number for how widespread GCCs are in India. It says multinational companies have been expanding them across Indian cities. Their growth could accelerate if companies find it harder or more expensive to deploy engineers to the United States. India’s engineering and technology talent would support that expansion.

Traditional outsourcing focuses on Indian IT services companies delivering work for clients. GCCs, by contrast, are described here as multinational companies’ own centres for global functions. If more research, artificial intelligence, deep technology, and advanced product development move into these centres, India could become a stronger destination for global innovation.

Key Facts:

📌 The U.S. suspended PERM for major IT outsourcing companies.

📌 Indian firms may face higher U.S. operating costs.

📌 More high-value technology work could shift to India.

📌 PERM is an important step in many employment-based Green Card applications.

📌 Restrictions may make U.S. permanent residency harder to pursue.

📌 Employers could struggle to retain skilled employees.

📌 Indian professionals pursuing permanent residency face added difficulty.