The United States has suspended the participation of eight major technology and IT services companies in a key employment-based immigration process used by employers to sponsor foreign workers for permanent residency. The announcement, made on October 8, 2026, has raised questions among Indian technology professionals working in the US, particularly those who are waiting for employer-sponsored green cards.
The affected companies are Tata Consultancy Services (TCS), Infosys, Wipro, HCLTech, Cognizant, Capgemini, Microsoft and Adobe. The US Department of Labor has said it will not accept new Permanent Labour Certification applications involving these companies or process their pending applications while the action remains in effect.
Editorial Insight
Key Highlights
Important points readers should notice.
Issue/Event: US suspension of new and pending PERM labour-certification applications involving eight major technology companies.
Location: United States, with implications for eligible foreign employees, including Indian IT professionals.
Authority/Organisation: US Department of Labor; announcement involving Vice President JD Vance and Labour Secretary Keith Sonderling.
Action Taken: New applications will not be accepted and pending applications involving the affected companies will not be processed while the suspension applies.
Impact: Eligible employees may face delays in employer-sponsored green-card cases. Existing H-1B visas are not automatically cancelled by this action.
US officials have alleged that some employers misused employment-based immigration programmes to hire foreign workers at the expense of American employees. The announcement was made by Vice President JD Vance and Labour Secretary Keith Sonderling. The government has not publicly detailed company-specific findings establishing the alleged violations in the announcement.
What Is the PERM Programme?
The Permanent Labour Certification programme, commonly called PERM, is an important step in many employer-sponsored employment-based green-card cases in the United States.
Editorial Analysis
Why This Matters
The decision affects a key step in the long-term immigration plans of skilled foreign workers employed by some of the world's largest technology companies. For Indian professionals, a delayed green-card process can create uncertainty around career planning, family arrangements and the ability to remain in the United States permanently. For employers, the restriction may make it more difficult to offer a predictable permanent-residency pathway to some employees. The wider impact will depend on the duration of the suspension and the government's subsequent decisions. The distinction between temporary work authorisation and permanent residency is crucial. An employee should not assume that a PERM suspension automatically invalidates their current immigration status, but should also not assume that existing deadlines or eligibility requirements have changed.
Under the normal process, an employer generally has to demonstrate that it has tested the relevant labour market and that there are not sufficient able, willing, qualified and available US workers for the position, while meeting applicable wage and recruitment requirements. Once labour certification is approved, the employer may proceed to the relevant immigrant-petition stage, subject to the applicable rules.
PERM is not itself a visa or a green card. It is one part of a longer process through which eligible foreign employees may seek permanent residency through employment.
The suspension is significant because affected employers may be unable to initiate new PERM cases or move pending applications forward while the restriction applies. The exact consequences for individual cases depend on their stage and the government's instructions.
Which Companies Are Affected?
The eight companies named in reports of the suspension are:
- Tata Consultancy Services (TCS): Indian IT services company.
- Infosys: Indian technology and consulting company.
- Wipro: Indian IT services and consulting company.
- HCLTech: Indian technology services company.
- Cognizant: IT services and consulting company with a major US presence.
- Capgemini: France-based technology and consulting company.
- Microsoft: US-based technology company.
- Adobe: US-based software company.
The action is directed at the named companies and their participation in the specified process. It should not be interpreted as a blanket suspension of every Indian professional, every technology employer or the entire US employment-based immigration system.
What Does This Mean for Indian IT Professionals?
The impact will depend on the employee's immigration status, employer, green-card stage and the applicable instructions issued by US authorities.
Employees who have not started the PERM process: Workers relying on one of the affected employers to begin a new PERM application may face delays in starting the standard employer-sponsored route to permanent residency.
Employees with pending PERM applications: Their cases could be delayed because the government has said it will not process pending applications involving the affected companies while the suspension applies.
Employees already holding H-1B visas: The suspension does not, by itself, cancel an existing H-1B visa or change the status of its holder. The US employment-based green-card process and the H-1B temporary work-visa programme are separate mechanisms.
Employees who already have green cards: The announcement does not, by itself, revoke an already-issued green card. Any individual immigration concern should be assessed under the applicable rules and the person's circumstances.
Workers approaching immigration deadlines: Those whose plans depend on PERM timing should seek case-specific advice from their employer's immigration team or a qualified US immigration lawyer. They should not assume that the suspension automatically extends a visa, preserves eligibility or provides a new immigration benefit.
Why Has the US Taken This Step?
US officials have argued that employment-based immigration programmes have been used in ways that disadvantage American workers. The suspension is part of a broader effort by the administration to scrutinise foreign-worker programmes and employer compliance.
The allegations should be distinguished from proven findings about each company. The announcement does not, on its own, establish that every affected employer committed fraud or that every employee sponsored through the process violated immigration rules.
The decision also comes as the US technology sector is adjusting to changes in hiring, artificial intelligence, labour costs and immigration policy. For international workers, uncertainty around the route to permanent residency can influence long-term career and family decisions.
India's Response and the Industry's Position
India's Ministry of External Affairs said on October 9 that the suspension does not, by itself, affect the validity of existing H-1B visas or the status of H-1B visa holders and their dependants. It acknowledged that the measure could affect the permanent-residency process for eligible employees of the companies concerned.
India also emphasised the contribution of skilled Indian professionals to the US economy and said talent mobility benefits both countries.
Industry representatives have pointed out that major Indian technology companies have increased local hiring in the United States and reduced their reliance on some traditional visa pathways. TCS has also indicated that it does not expect the development to change its workforce strategy or client engagements.
The immediate effect on each company may therefore differ from the effect on an individual employee who is depending on a green-card application to secure a long-term future in the United States.
Will This Affect Indian IT Companies Financially?
The suspension introduces uncertainty, but it does not automatically mean that the affected companies will lose US contracts or be unable to employ their existing workforce.
Analysts have indicated that the near-term financial impact may be limited because Indian IT firms have expanded local hiring and become less dependent on certain immigration routes. However, longer-term concerns include employee retention, recruitment costs and the possibility that workers may reconsider their future with employers unable to advance their permanent-residency applications.
The financial consequences will depend on how long the restrictions remain in place, how many employees and cases are affected, and whether the companies can adjust their hiring and retention strategies.
