Archive · 9 Oct 2026
US PERM Suspensions Raise Uncertainty for Indian IT Companies
The US government has stopped eight technology-services companies from using a process called PERM.
PERM can help a foreign worker move toward permanent residency in the United States.
The companies include several large Indian IT firms, and Microsoft was also named as affected.
The article says this does not mean H-1B work visas have been cancelled.
The government says some employers used PERM unfairly against American workers.
The article argues that this claim needs evidence.
Indian IT companies have already been relying less on US work visas and hiring more workers locally.
The article says they should continue that change because immigration restrictions may last.
The US administration suspended eight IT services companies from the PERM labour-certification programme, including Tata Consultancy Services, Infosys, Wipro, HCL Technologies and Cognizant.
A similar suspension was extended to US companies, including Microsoft; the article says no decision has been made to directly revoke H-1B visas.
PERM allows employers to certify that hiring a foreign worker will not harm US workers and that qualified US workers are unavailable.
The administration says employers used the programme to favour foreign workers, while the article says the allegations lack supporting evidence.
Indian IT firms accounted for less than 2% of PERM applications from October 2024 to September 2025, and the article urges them to complete their shift away from visa dependence.
- Who
- The US administration and eight IT services companies, including Tata Consultancy Services, Infosys, Wipro, HCL Technologies and Cognizant.
- What
- Suspension of the companies from the Permanent Labour Certification programme, a route that can support foreign workers seeking permanent residency.
- When
- The article does not give the suspension date; it cites PERM application figures for October 2024 to September 2025 and refers to November 3 mid-term elections.
- Where
- The United States.
- Why
- The administration says some employers used the programme to favour foreign workers over Americans; the article says supporting evidence is lacking.
Administration's rationale
Article's criticism
Whether employers unfairly favoured foreign workers
Administration's rationale
The administration says some employers used PERM to favour foreign workers and make it harder for Americans to get jobs.
Article's criticism
The article says the allegations warrant scrutiny but lack supporting evidence.
How Indian IT companies should respond
Administration's rationale
The article reports that the Indian government says the immediate business impact may be limited, and that Indian firms have reduced H-1B use while increasing local US hiring.
Article's criticism
The article argues that Indian IT companies should complete their shift away from dependence on visas and says India should seek evidence and stand behind its companies.
- Companies suspended
- Eight IT services companies
- Named Indian IT companies
- Tata Consultancy Services, Infosys, Wipro, HCL Technologies and Cognizant
- Other named company
- Microsoft
- Visa status
- The article says no decision has been made to directly revoke H-1B visas.
- PERM application share
- Indian IT companies accounted for less than 2% of applications filed from October 2024 to September 2025, according to an ICICI Securities assessment reported by Reuters.
- Election date cited
- November 3; the article does not specify the year.