Archive · 9 Oct 2026
US Green Card Programme Suspension Could Shift Tech Work to India
The United States suspended eight IT companies from a programme used in the process for workers to apply for employment-based green cards.
Karnataka minister Priyank Kharge said this could make it more expensive for Indian technology companies to operate in the United States.
It could also make it harder for them to keep skilled workers and send employees onsite.
Kharge said this would be difficult for traditional IT outsourcing.
He also said companies might do more advanced technology work in India instead.
That work could include research, engineering and making products.
He believes this could help India grow in areas such as artificial intelligence and deep technology.
Kharge also criticised the India-US trade deal and questioned whether the leaders’ friendship benefits India.
The US suspended eight IT firms from the Permanent Labour Certification Programme, a step in the employment-based green card process.
Karnataka minister Priyank Kharge said the move could raise US operating costs for Indian IT companies and make staff retention and onsite deployment harder.
Kharge described the suspension as a headwind for traditional Indian IT outsourcing, while saying it could also encourage firms to expand Global Capability Centres in India.
He said more research, engineering and product development work could move to India, increasing demand for senior technology professionals.
Kharge said India could build its role in product development, AI, deep technology and innovation; he also criticised the India-US trade deal and questioned the benefit of the Modi-Trump relationship.
- Who
- The US government suspended eight IT firms from the programme; Karnataka IT and BT Minister Priyank Kharge discussed the possible effects.
- What
- The suspension of the Permanent Labour Certification Programme for eight IT firms could challenge Indian IT outsourcing while encouraging more high-value technology work in India.
- When
- The US announced the suspension on Thursday; Kharge made his remarks on Friday, October 9, 2026.
- Where
- The suspension concerns the United States; Kharge’s remarks were reported from Bengaluru, India.
- Why
- US officials said the practice had shut Americans out of the job market. Kharge said the change could affect Indian companies’ costs, staffing and deployment of workers.
Potential costs and risks
Potential opportunities
Impact on Indian IT outsourcing
Potential costs and risks
Kharge said the suspension could raise US operating costs, complicate staff retention and reduce flexibility in deploying Indian professionals onsite.
Potential opportunities
Kharge said companies could respond by expanding GCCs in India and locating more high-value technology work where talent is available.
Effect on the US job market
Potential costs and risks
US officials contended that the practice had shut Americans out of the job market.
Potential opportunities
Kharge argued that the change could help India attract research, engineering and product development work and strengthen its technology-sector role.
India-US relationship
Potential costs and risks
Kharge said the India-US trade deal had not been fair to India and questioned how the friendship between Narendra Modi and Donald Trump was helping the country.
Potential opportunities
The articles provide no response from US officials or other parties to Kharge’s criticism.
- Programme
- Permanent Labour Certification Programme (PERM)
- Firms suspended
- Eight IT firms, including Microsoft, Tata, Infosys and Wipro
- US officials named
- Vice President J D Vance, Labour Secretary Keith Sonderling and Attorney General Todd Blanche
- US rationale
- Officials contended that the practice had shut Americans out of the job market.
- Potential impact on Indian firms
- Higher US operating costs, harder retention of skilled employees and less flexibility in onsite deployment
- Potential shift in India
- More GCC expansion and research, engineering and product development work
- Date of remarks
- October 9, 2026
