Trump curbs green card pathway: How Indian IT firms and workers could be affected

The Trump administration suspended eight technology companies from the US Permanent Labor Certification, or PERM, programme. The suspension stops authorities from accepting new applications and processing pending ones. PERM is a route employers use when sponsoring foreign workers for permanent US residency.

The companies are Tata Consultancy Services, Infosys, Wipro, HCLTech, Microsoft, Adobe, Cognizant and Capgemini. Four of the eight are major Indian IT firms. US Labor Secretary Keith Sonderling said the action responded to alleged abuse of the immigration system.

The immediate business effect may be limited. TCS said it had submitted fewer than 10 PERM applications in two years and expected no effect on its workforce strategy or client work. However, a longer suspension could increase staffing costs, encourage more local hiring or subcontracting, and make Indian workers less certain about settling permanently in the US.

The Permanent Labor Certification, or PERM, programme is a US employment-based immigration process. It lets an employer seek certification before sponsoring a foreign worker for permanent residency, commonly associated with a green card. The programme matters because it creates a formal route from a job to long-term settlement.

Its central mechanism is a labor-market test. An employer must demonstrate that qualified American workers are unavailable for the position. This requirement comes before the employer sponsors the foreign worker through the permanent-residency process. The Department of Labor oversees the programme, according to the article.

The suspension blocks new applications and pauses processing of pending ones for the eight named companies. Existing H-1B visas are unaffected because H-1B is a separate temporary-worker programme. Still, affected employees may lose a predictable route toward permanent residency, especially if the restrictions last.

The immediate scope is limited to eight named technology companies. Four are Indian IT giants: Tata Consultancy Services, Infosys, Wipro and HCLTech. The other four are Microsoft, Adobe, Cognizant and Capgemini.

The suspension affects the companies’ use of the PERM process. US authorities will stop accepting their new applications and processing pending applications. It does not suspend the entire US permanent-residency system for every employer, based on the article’s description. It targets these eight companies while authorities cite alleged immigration-system abuse.

The business impact may initially be modest. TCS said it had filed fewer than 10 PERM applications during the previous two years. Analysts nevertheless warned that prolonged restrictions could raise costs, increase reliance on subcontractors and complicate workers’ plans to settle permanently in the US.

PERM and H-1B serve different immigration purposes. PERM is connected to employer sponsorship for permanent US residency. H-1B is a visa programme for temporary foreign workers. The article stresses that the suspended programme concerns permanent immigration, not temporary employment.

This distinction means Indian workers who already hold H-1B visas do not face immediate cancellation because of the PERM suspension. India’s Ministry of External Affairs said the restrictions could affect eligible workers’ green card applications, but not existing H-1B visa holders. NASSCOM also described the programmes as separate.

The main risk is longer-term uncertainty. Workers may continue working in the US under H-1B status, yet lose a predictable path toward permanent residency. Analysts expect no mass return to India within six to 12 months, but prolonged uncertainty could redirect experienced workers toward India or other global hubs.

Before sponsoring a foreign worker for permanent residency, an employer must demonstrate that qualified American workers are unavailable for the job. This is the core labor-market condition attached to PERM. It makes employers establish that the position cannot be filled by an available, qualified US worker.

The mechanism is straightforward: the employer’s permanent-residency sponsorship depends on that demonstration. If qualified American workers are available, the employer cannot simply use PERM as the route for the foreign worker. The article identifies this requirement through the US Department of Labor’s description of the programme.

The rule matters because the current suspension interrupts that process for eight technology companies. New applications cannot be accepted, and pending ones cannot be processed. Companies may therefore turn to local US hiring, subcontractors or offshore staffing while workers face uncertainty over permanent settlement.

If PERM restrictions continue, Indian IT firms have several staffing options. Analysts expect more selective US hiring, greater use of subcontractors and a reassessment of which US-based work can move offshore. Companies could also develop opportunities in other overseas markets.

The cost mechanism is important. EIIR Trend estimated that US hiring costs 25 to 50 per cent more than sending Indian employees there, depending on the role. Ghosh expects firms to focus US hiring on client-facing consulting, architecture and specialised engineering, while subcontractors provide faster flexibility.

Over the next six to 12 months, companies may combine these approaches rather than make one sweeping change. Singapore and the UAE could attract experienced Indian professionals, while Malaysia may benefit in cloud, cybersecurity and engineering. Their smaller tech markets limit how much talent they can absorb.

A US green card is a document and status showing lawful permanent residence in the United States. It generally allows a person to live and work there permanently, subject to immigration rules. The article focuses on employment-based routes that let companies sponsor eligible foreign workers for this status.

That possibility can shape a worker’s career decision. An overseas posting may be more attractive when it offers not only a job, but also a predictable path to permanent residency. Indian IT companies have used global mobility to attract and retain talent, even with relatively low entry-level salaries. Removing that path weakens the incentive to move or remain abroad.

The article does not expect a mass return to India within six to 12 months. Prolonged uncertainty could gradually push experienced workers toward India or other hubs. India has opportunities in GCCs, product engineering, AI infrastructure, cybersecurity and cloud, but not every returnee may find comparable seniority or pay.