Will the US freeze on green card applications affect Indian IT companies and employees?

The US Department of Labor suspended processing of PERM labor-certification requests connected to eight technology companies. It stopped accepting new applications and halted work on pending applications involving those firms. PERM is a required stage for many employment-based green-card cases, so the decision affects workers seeking permanent residency.

The named companies are Microsoft, Adobe, Cognizant, Infosys, Tata Consultancy Services, Wipro, HCL Technologies and Capgemini. The Department cited 20 CFR § 656.31(b), which allows temporary interruption of services when there are grounds to suspect fraud or wilful misrepresentation.

The suspension does not itself prove fraudulent activity. It interrupts processing for affected applications and may delay workers’ move from temporary employment status toward permanent residency. The article places the decision within wider scrutiny of H-1B and J-1 visa programs, especially because Indian technology workers make up a large share of employment-based applicants.

PERM stands for Program Electronic Review Management. It is the initial step in the employment-based green-card process for most immigrants applying through the EB-2 and EB-3 categories. It matters because the employer must establish that the job was offered to the US labor market and that attempts were made to hire American workers.

This requirement connects the worker’s immigration case to the employer’s recruitment process. The employer must prove it tried to fill the relevant position with Americans. Once this stage is completed, the case can move to the next part of the green-card process.

A suspension therefore interrupts more than an administrative form. It can delay a worker’s transition from temporary status to permanent residency. The article also notes that delays affect important life decisions and planning, especially because the employment-based backlog is already extremely large for Indian applicants.

The process described in the article has three broad stages: entering the United States, working there temporarily, and eventually receiving permanent residency. H-1B status supports the work stage. PERM belongs to the next transition, when an employer seeks to help the worker move from temporary employment toward a green card.

For most EB-2 and EB-3 cases, the employer first uses PERM to show that it tried to hire Americans for the job. If that stage is suspended or delayed, the application cannot advance normally. The worker may still continue working lawfully while the green-card case is delayed, provided existing work authorization remains valid.

The connection is especially important for Indians. Indians represented 71% of successful H-1B applicants in fiscal 2024, and they make up about 68% of the employment-based queue. A PERM delay can therefore affect many workers’ long-term residence plans even when their current employment continues.

If an Indian employee’s PERM application is delayed, the worker’s transition from temporary US employment to permanent residency is interrupted. The delay does not automatically stop lawful employment. The article says workers may continue working while their green-card applications are delayed, provided their existing authorization remains valid.

The practical mechanism is timing. PERM is the initial stage for most EB-2 and EB-3 cases, so a suspension prevents affected applications from moving normally to later stages. If a case cannot be filed, the worker may also lose time in a process already marked by long queues and uncertainty.

The consequences reach beyond paperwork. Permanent residency influences decisions and planning, including how workers organize their lives and employment. Indian employees face particular exposure because they form about 68% of the employment-based queue. The article estimates waits for Indian applicants could reach 134 years, with some dying before receiving a visa.

The employment-based green-card backlog is enormous. The Cato Institute estimated that approximately 1.8 million people were on the US employment-based waiting list in 2023. Around 1.1 million of them were Indians, making Indian nationals the dominant group in the queue.

Those figures translate into a major imbalance. The report estimated that Indians represented about 68% of the backlog. It also estimated that clearing the queue for Indian applicants could take up to 134 years. Approximately 424,000 Indians could die before obtaining a visa, according to that estimate.

The backlog explains why a PERM suspension matters to individual employees even if its immediate effect on company profits is limited. Any additional obstacle can extend an already uncertain process. For Indian technology workers, delays can affect long-term residence, family and career planning, and the timing of a move from temporary status to permanent residency.

A PERM suspension directly affects workers waiting for permanent residency, but it does not necessarily stop the companies from delivering technology services. The article therefore says its immediate relevance for corporate profits is limited. Firms can continue serving customers through delivery models that do not require every employee to live in the United States.

The contrast appears in the industry’s changing revenue pattern. RBI data shows on-site revenues falling from US$19 billion to US$18.4 billion. On-site revenue covers wages paid to staff working at overseas client facilities. The decline suggests that sending large numbers of Indian professionals abroad is becoming less central to service delivery.

Nasscom reported Indian IT revenue of $315 billion in FY2025-26, with exports of $246 billion. The industry employed about 5.95 million workers. These figures show why a worker’s immigration delay can be personally severe while the company adapts operationally through remote or India-based delivery.

A technology company does not need to place every worker inside the United States to serve an American client. It can organize delivery through teams based in India. Those teams can work on projects remotely and provide services across borders.

The article specifically lists software development, consulting and maintenance among the services an Indian team can provide without its professionals being based in America. This model reduces dependence on sending numerous Indian employees overseas and on securing US immigration status for every worker.

The shift is visible in the revenue data. RBI figures show on-site revenues declining from US$19 billion to US$18.4 billion, suggesting that traditional overseas placement is being de-emphasized. At the same time, Nasscom reported $246 billion in Indian IT exports in FY2025-26. The model cannot remove all immigration effects, but it gives companies another way to serve US customers when relocation becomes difficult.