Why the US Suspended Green Card Filings for TCS, Infosys, Wipro, HCL and Cognizant | PERM Explained
The Trump administration has suspended several major technology companies, including Indian IT giants TCS, Infosys, Wipro, HCLTech and Cognizant, from filing new applications under the U.S. Permanent Labor Certification (PERM) programme. Microsoft, Adobe and Capgemini have also been affected.
The move marks a significant escalation in the administration's crackdown on employment-based immigration and has raised concerns among thousands of Indian technology professionals working in the United States.
While the suspension does not cancel existing H-1B visas or Green Cards, it temporarily blocks affected companies from initiating a crucial step in the employment-based Green Card process.
Key Highlights
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Why Has the US Suspended PERM Filings?
U.S. Labor Secretary Keith Sonderling announced that the affected companies are being suspended from the Permanent Labor Certification (PERM) programme while federal investigations continue.
According to the administration, the decision is part of a broader effort to reduce reliance on foreign labour and prioritise employment opportunities for U.S. citizens.
Officials allege that some employers may have:
Underpaid foreign workers.
Displaced qualified American workers.
Misused the PERM and H-1B systems.
Submitted fraudulent or non-compliant labour certification applications.
However, the administration has not publicly released company-specific findings or evidence supporting the allegations.
What Is PERM?
PERM (Program Electronic Review Management) is the first major step in obtaining an employer-sponsored employment-based Green Card in the United States.
Before sponsoring a foreign worker for permanent residency, an employer must:
Obtain a prevailing wage determination.
Conduct recruitment to test the U.S. labour market.
Demonstrate that no qualified American worker is available for the position.
Once the U.S. Department of Labor approves the PERM application, the employer can proceed with the next stages of the Green Card process.
For many Indian professionals, the PERM filing date becomes their priority date, determining their place in the Green Card queue.
How Is PERM Different From an H-1B Visa?
Although often linked, PERM and H-1B are different immigration processes.
H-1B Visa
Temporary non-immigrant work visa.
Allows skilled foreign professionals to work in the U.S.
Usually valid for up to six years, with certain extensions.
PERM
Part of the employment-based Green Card process.
Leads to permanent residency.
Filed by the employer, not the employee.
The current suspension affects PERM filings, not existing H-1B visas.
Which Companies Are Affected?
According to the announcement, the suspension applies to:
Tata Consultancy Services (TCS)
Infosys
Wipro
HCLTech
Cognizant
Microsoft
Adobe
Capgemini
The duration of the suspension has not yet been announced.
What Does This Mean for Indian IT Professionals?
For employees whose employers have not yet filed PERM applications, the suspension could significantly delay their Green Card journey.
Key consequences include:
Delayed PERM filings.
Delay in securing a priority date.
Longer waiting periods for permanent residency.
Potential complications for certain H-1B holders nearing the six-year limit.
Workers with already approved Green Card petitions generally remain in a different legal position and may still qualify for H-1B extensions under existing immigration rules.
Why Are Indian Workers Most Affected?
Indian professionals account for the largest share of employment-based Green Card applicants in the United States.
Due to country-specific annual limits, Indian applicants already face one of the world's longest Green Card backlogs.
For many applicants in the EB-2 and EB-3 employment categories, waiting periods extend well over a decade.
Any delay in PERM processing could further lengthen these timelines.
Microsoft's Response
Microsoft has rejected suggestions that it improperly used the system.
The company said:
About 80% of its H-1B filings last year were for existing employees changing or extending status.
Only a small proportion involved new hires.
New H-1B recruits accounted for roughly 1% of its U.S. workforce.
Other affected companies have not publicly commented in detail on the investigations.
Could This Benefit India's Technology Sector?
Some analysts believe the restrictions could accelerate the shift of high-value technology work to India.
Karnataka IT Minister Priyank Kharge said tighter mobility rules may encourage multinational companies to expand:
Global Capability Centres (GCCs)
Research and Development (R&D)
Artificial Intelligence projects
Product engineering
Advanced technology operations
Instead of relocating engineers to the U.S., companies may increasingly assign strategic work to Indian development centres.
What Are Global Capability Centres (GCCs)?
Global Capability Centres are offshore hubs established by multinational companies to perform high-value business functions.
In India, GCCs increasingly handle:
Artificial Intelligence
Cloud computing
Cybersecurity
Product development
Data analytics
Research and innovation
Industry experts believe immigration restrictions could further accelerate GCC expansion across Bengaluru, Hyderabad, Pune, Chennai and Gurugram.
What Happens Next?
The U.S. Department of Labor continues to investigate the affected companies.
Until the suspension is lifted:
New PERM applications from the listed companies cannot proceed.
Existing H-1B visas remain valid under current rules.
Previously approved Green Card cases continue according to applicable immigration laws.
The outcome of the investigations will determine whether the companies regain access to the PERM programme or face additional regulatory action.
The suspension of PERM Green Card filings for several of the world's largest technology companies marks one of the most significant U.S. immigration policy actions affecting Indian IT professionals in recent years.
While the immediate impact is likely to be delays in employer-sponsored Green Card applications, the longer-term consequences could reshape global technology hiring, encourage greater investment in India's innovation ecosystem, and accelerate the expansion of Global Capability Centres.
The coming months will be crucial as investigations continue and companies adapt to a rapidly evolving U.S. immigration landscape.
Frequently Asked Questions (FAQs)
Q1. Why did the U.S. suspend PERM filings for Indian IT companies?
Answer. The Trump administration says the suspension is part of investigations into alleged misuse of employment-based immigration programmes and aims to prioritise American workers.
Q2. Which companies have been suspended from the PERM programme?
Answer. The suspension affects TCS, Infosys, Wipro, HCLTech, Cognizant, Microsoft, Adobe and Capgemini.
Q3. Does the suspension cancel existing H-1B visas?
Answer. No. The action only affects new PERM Green Card filings. Existing H-1B visas and approved Green Card petitions remain governed by current immigration rules.
Q4. What is PERM?
Answer. PERM (Program Electronic Review Management) is the labour certification process employers must complete before sponsoring many foreign workers for employment-based Green Cards.
Q5. How will this affect Indian IT professionals?
Answer. Employees waiting to begin the Green Card process may face delays in obtaining priority dates and permanent residency. Some H-1B holders nearing their visa limit could also be affected.
Q6. Could this benefit India's technology sector?
Answer. Yes. Experts believe stricter U.S. immigration policies may encourage multinational companies to expand research, engineering, AI and Global Capability Centres in India.
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