Archive · 10 Oct 2026
US PERM Curbs Seen Limiting Near-Term Impact on Indian IT
The US has paused a process that helps some workers get permanent residency through their jobs.
Several Indian technology companies are affected, but they say they use this process less than before and hire more people locally in the United States.
The pause does not cancel existing H-1B visas or directly stop current projects.
Still, workers waiting for permanent residency may feel uncertain, and companies could have a harder time keeping some employees.
One research firm estimates that these extra challenges could slightly reduce company margins.
Analysts also warn that the policy could affect how investors feel about the industry.
A research group said US restrictions could eventually reach beyond green cards.
One former technology executive said tougher rules could lead more technology work to be done in India.
The US suspended the PERM employment-based permanent-residency process for major technology companies, including several Indian IT firms.
Nasscom and TCS said firms’ lower reliance on PERM and increased US local hiring limit immediate disruption.
The suspension does not cancel existing H-1B visas or directly affect ongoing project staffing, but may unsettle workers awaiting permanent residency.
UnearthInsight estimated 10–30 basis points of operating-margin pressure over 12 months; longer delays could bring greater pressure and modestly lower revenues.
Analysts flagged retention and sentiment risks, while GTRI warned restrictions could broaden and former HCLTech chief Vineet Nayar said work could shift to India.
- Who
- The US administration, Indian IT services firms including TCS, and employees pursuing permanent residency through PERM.
- What
- The US suspended the PERM process for major technology firms; analysts expect limited immediate business disruption but warn of uncertainty and possible talent-related costs.
- When
- The suspension and industry reaction were reported on Friday; the articles discuss possible effects over the next 12 months and several years.
- Where
- The policy is in the United States and affects Indian IT firms and their US workforce.
- Why
- The US administration suspended a pathway to permanent residency; Vice-President JD Vance said companies used PERM to replace American workers and undercut wages, without citing specific evidence.
Limited near-term business impact
Potential longer-term risks
Immediate disruption
Limited near-term business impact
Nasscom and TCS said companies have reduced reliance on immigration routes, expanded US local hiring, and use PERM relatively little; existing visas and project staffing are not directly affected.
Potential longer-term risks
The suspension creates uncertainty for workers awaiting permanent residency and could complicate retention and workforce planning.
Business and talent effects
Limited near-term business impact
Forrester described the near-term revenue impact as likely modest, and UnearthInsight said the immediate revenue effect could be negligible.
Potential longer-term risks
UnearthInsight estimated potential margin pressure if the suspension persists; ICICI Securities warned of sentiment and retention concerns, while GTRI cautioned that restrictions could extend to H-1B hiring, skilled-worker mobility, and outsourcing.
Where work may be done
Limited near-term business impact
TCS said the suspension would not affect its workforce strategy or client engagements.
Potential longer-term risks
Former HCLTech CEO Vineet Nayar said restrictions on Indian professionals moving to the US could accelerate the movement of technology work to India.
- Programme
- Permanent Labour Certification (PERM), an employer-sponsored pathway to permanent residency.
- Existing H-1B visas
- The suspension does not cancel existing H-1B visas.
- TCS US hiring plan
- TCS plans to hire 15,000 people in the US over the next five years.
- TCS PERM applications
- TCS said its PERM applications had fallen to single digits over the past two years.
- Indian IT share of PERM applications
- ICICI Securities said Indian IT firms accounted for less than 2% of applications filed from October 2024 to September 2025.
- Estimated margin pressure
- UnearthInsight estimated 10–30 basis points over 12 months, potentially rising to 30–75 basis points if the suspension continues for several years.
- Possible revenue effect
- UnearthInsight said revenues could be 0.25–0.75% below otherwise expected levels if the suspension lasts several years.
- US share of Indian software and IT-enabled services exports
- GTRI said the US accounts for 54.1%.
