Archive · 10 Oct 2026
US Green Card Freeze Prompts Indian IT Firms to Reassess Hiring
The US government paused a process that employers use as part of helping workers get employment-based green cards.
Eight technology companies, including Indian IT firms and Microsoft and Adobe, were suspended from the process.
US officials said the action was connected to investigations into possible misuse of foreign-worker programmes.
The pause does not automatically cancel existing H-1B visas, but it may delay some workers’ path to permanent residency.
Nasscom said Indian IT companies already rely less on H-1B visas and hire more people locally in the United States.
TCS said the suspension would not significantly change its plans and that it intends to add 15,000 US employees over five years.
Other industry voices said companies may expand teams and engineering centres in India while continuing to hire locally in the US.
They also said the uncertainty could make overseas career plans harder for some workers.
These are possible responses, not confirmed changes by every company.
The US Department of Labor suspended eight technology companies from the PERM employment-based green card process, citing investigations into alleged misuse of foreign-worker programmes.
The affected companies are TCS, Infosys, Wipro, HCLTech, Cognizant, Capgemini, Microsoft and Adobe.
Nasscom said Indian IT firms have reduced H-1B reliance, increased US local hiring and made relatively few transitions from H-1B status to permanent residency through PERM.
TCS said the suspension would not materially affect its workforce strategy or client engagements, citing single-digit PERM applications over two years and plans to hire 15,000 more US employees over five years.
Industry commentators expect uncertainty could lead firms to combine US hiring with expanded India-based delivery and Global Capability Centres; one article estimated more than 100,000 professionals and family members could be affected.
- Who
- The US Department of Labor suspended eight technology companies, including six Indian IT services firms; Nasscom, TCS and industry commentators responded.
- What
- The companies were suspended from the PERM labour certification process used in employment-based green card applications.
- When
- The suspension was announced on Thursday; TCS responded on Friday.
- Where
- The United States, with potential implications for Indian IT firms, professionals and delivery operations in India.
- Why
- US officials cited active federal investigations and alleged misuse of foreign-worker programmes; the administration says such programmes should not displace American workers.
Industry and company responses
US administration concerns
Use of foreign-worker programmes
Industry and company responses
Nasscom said Indian IT firms have reduced H-1B reliance, expanded US local hiring and remain committed to complying with local laws.
US administration concerns
US officials cited investigations into alleged misuse of foreign-worker programmes, and the administration says those programmes should not displace American workers.
Likely business impact
Industry and company responses
TCS said the suspension would not materially affect its workforce strategy or client engagements, citing few recent PERM applications.
US administration concerns
Industry commentators warned that uncertainty may complicate retention and workforce planning, and could prompt changes to US and India staffing and delivery models.
- Affected companies
- TCS, Infosys, Wipro, HCLTech, Cognizant, Capgemini, Microsoft and Adobe
- Suspending agency
- US Department of Labor
- Programme
- Permanent Labor Certification (PERM), a labour certification step in employment-based green card processing
- TCS PERM applications
- In the single digits over the past two years, according to TCS
- TCS US hiring plan
- 15,000 additional employees over the next five years
- Nasscom's position
- Indian IT companies have reduced H-1B dependence, expanded local US recruitment and have relatively limited PERM transitions from H-1B status
- H-1B visa status
- The suspension does not automatically cancel existing H-1B visas
- Estimated exposure
- More than 100,000 professionals and their families, according to one article
