The US administration’s effort to block immigrant workers’ journey from H-1B visas to US permanent residency may leave Indian IT services companies unscathed, as traffic along this route had already slowed to a trickle.
The US on Thursday suspended issuing crucial certificates to leading Indian IT services companies—including and Infosys Ltd—which are required for H-1B workers to seek green cards. However, data shows these companies these firms account for less than 2% of the total applications filed.
“I am hereby suspending from the permanent labor certification program, some of the largest IT outsourcing firms in the world, Cognizant, Infosys, Tata, Wipro, HCL, and Capgemini; and also due to multiple active federal investigations, the department of labor is suspending Microsoft and Adobe from the program. So, what does this mean? We will not accept any new or process any pending permanent labor certification applications involving these companies,” said US secretary of labour Keith Sonderling.
To begin the green card process, a US employer must obtain labour certification through the Program Electronic Review Management (PERM) process. When filing the PERM application, the employer must advertise the job opening, consider applicants, document why qualified US workers were not selected, and prove that hiring a foreign worker will not hurt wages or working conditions for American workers. Once the Department of Labor approves the PERM certification, the employer can then file an immigration petition with US Citizenship and Immigration Services (USCIS).
“This administration knows that American workers are the best and brightest in the world. These jobs that were stolen from them should have gone and will now go to Americans first, not foreigners, and especially not foreign fraudsters. And today, thanks to President Trump, vice-president, and the task force, we are cutting off the head of the snake, the companies that have enabled this abuse for decades, due to ongoing criminal investigations led by the department of labor’s inspector general Anthony D’esposito, who will get into this shortly,” said Sonderling.
However, data from the US Department of Labour shows Indian IT companies collectively received fewer than 1,400, or less than 2%, of the 117,849 permanent labour requests filed between October 2024 and Septembr, the latest period for which data is available. Infosys Ltd, India’s second-largest tech services firm, has not had any PERM cases since 2022. During the period, , TCS and got 523, 513, and 393 permanent residency approvals, according to the US government’s PERM Disclosure Data for FY25.
This is a fraction of the approvals that non-IT firms received. In FY25, Microsoft was the top PERM filer in the country with 3,161 cases decided, more than double that of the six outsourcing firms combined.
The clampdown comes amid accusations of Indian IT companies replacing US workers with cheaper immigrant workers.
“The H1-B visa program is meant to allow companies to bring in really the best of the best from outside the United States of America for positions that are completely impossible to fill with American workers. Unfortunately, the program has become rife with fraud,” said vice-president JD Vance.
An expert said Indian IT is unlikely to be affected.
“I would not expect an immediate project delivery crisis. PERM is not the same as an H-1B or other work visa; so, existing employees do not suddenly lose their ability to work because their green card process is suspended,” said Phil Fersht, chief executive of HFS Research. “The risk becomes much greater over the medium term if the suspension persists. These firms depend on experienced domain, technology and client-facing talent in the US, and uncertainty around permanent residency can drive attrition precisely among the people they most want to retain,” Fersht added.
“There is sufficient discretion within the regulatory framework to support the administration’s suspension of the PERM program. There are also valid ways that this move can be challenged through the courts and administrative procedures,” said Russell Stamets, partner at Circle of Counsels, a New Delhi-based law firm
However, Indian IT continues to rely heavily on H-1B visas.
Around 57,000 new H-1B visas were approved for Indians in FY26, down 28% from FY24, with Indians receiving about half of the total new H-1B visas. The US government follows an October-September financial calendar. Trump’s clampdown on H-1B visa holders has forced homegrown tech services companies to send fewer people on visas, according to a Mint report on 25 May.
For now, homegrown tech services firms are relying more on hiring local Americans.
“Over the last several years, Cognizant Technology Solutions has significantly reduced the dependency on visas, while increasing local hiring and our nearshore capacity,” said chief executive Ravi Kumar said in an analysts’ call in October last year.
On the other hand, TCS chief executive K Krithivasan said the firm had deployed even “fewer people than the number of approvals each year” and that this was a “part of a consistent reduction in dependency on visa-based talent over time”.