US green card suspension hits Infosys, Tata Consultancy Services and Wipro

The United States has suspended eight major technology companies, including Infosys Limited, Tata Consultancy Services Limited, Wipro Limited and HCL Technologies Limited, from the Permanent Labor Certification programme, commonly known as PERM, intensifying scrutiny of employer-sponsored immigration at some of the largest companies employing foreign technology professionals in America. The action, announced on October 8, 2026, also covers Cognizant Technology Solutions, Capgemini, Microsoft Corporation and Adobe Incorporated, affecting an important preliminary stage in the employment-based green card process.

The United States Department of Labor has linked the action to concerns about employer compliance and the protection of American workers. The suspension affects the ability of the identified companies to pursue permanent labor certifications through the programme, although it does not amount to a blanket cancellation of employees’ existing H-1B visas or an automatic revocation of previously issued green cards.

The distinction between immediate employment disruption and longer-term immigration consequences is important for India’s technology services industry. Analysts expect limited near-term financial damage because large Indian IT companies have reduced their dependence on employer-sponsored immigration channels, but the restrictions could complicate workforce planning, employee retention and permanent residency applications.

Why did the United States suspend major Indian IT companies from the PERM green card programme?

The suspension forms part of a broader United States government effort to increase scrutiny of employment-based immigration and ensure that employers do not use foreign worker sponsorship to circumvent protections for domestic workers. The Department of Labor has raised concerns about the way some large technology employers have used immigration programmes, including questions about recruitment practices and compliance with labour certification requirements.

PERM certification normally requires an employer to demonstrate that there are insufficient available, qualified and willing United States workers for a particular permanent position. Employers must also satisfy recruitment, wage and documentation requirements designed to protect labour market conditions.

The government action should not be confused with a final judicial determination that all eight companies committed immigration fraud. The suspension represents an administrative restriction, while specific allegations of improper conduct must be evaluated through the relevant investigative and legal processes.

The inclusion of Microsoft Corporation and Adobe Incorporated shows that the action is not confined to Indian-headquartered outsourcing companies. Nevertheless, the presence of Infosys, Tata Consultancy Services, Wipro and HCL Technologies makes the development particularly consequential for India’s technology services sector.

What is PERM certification and how is it different from an H-1B work visa?

The Permanent Labor Certification programme is a Department of Labor process used in many employment-based green card applications. Employers generally seek certification that hiring a foreign worker for a permanent position will not adversely affect the wages and working conditions of similarly employed American workers.

PERM approval is not itself a green card. It is ordinarily one stage in an employment-based immigration process that may subsequently involve a petition to United States Citizenship and Immigration Services and, depending on the applicant’s circumstances, adjustment of status or immigrant visa processing.

The H-1B programme serves a different purpose. It permits qualifying employers to sponsor foreign professionals for temporary employment in specialty occupations, subject to separate eligibility requirements and immigration rules.

Consequently, suspension from PERM does not automatically mean that every employee holding an H-1B visa through an affected company must leave the United States. However, workers relying on their employer to secure permanent residency may face delays or uncertainty if the company cannot proceed with the necessary labor certification.

For Indian professionals, this distinction is particularly significant because employment-based green card waiting periods can already be prolonged by numerical limits and country-specific demand.

How could the suspension affect existing green card applications by Indian technology workers?

The Department of Labor action covers the processing of permanent labor certifications involving the affected employers, creating uncertainty for employees whose applications are already in progress. The consequences for an individual worker will depend on the precise stage of the immigration process, the employer’s status and any subsequent administrative decisions.

An employee who has not yet received labor certification faces a different situation from someone who has already completed that stage and obtained approval of a subsequent immigration petition. The suspension should therefore not be interpreted as cancelling every employment-based immigration benefit previously obtained by employees of the eight companies.

Workers approaching important immigration deadlines may face more immediate planning difficulties. Where a person expects an employer to initiate or complete a permanent residency process within a particular period, delays can complicate decisions about employment, family relocation and long-term residence.

The restrictions could also affect recruitment and retention. Technology professionals may compare employers not only on salary and career opportunities but also on their willingness and legal ability to sponsor permanent residence.

That creates a longer-term workforce challenge even if the number of directly affected PERM applications is relatively small.

Why are Infosys, Tata Consultancy Services and Wipro expected to face limited immediate financial damage?

Indian technology services companies have spent years reducing their dependence on foreign workers deployed to the United States through temporary immigration programmes. Local recruitment, nearshore delivery centres and distributed operating models have become increasingly important as companies respond to customer preferences, immigration costs and regulatory scrutiny.

Industry data cited by analysts indicate that major Indian IT employers account for a relatively small share of recent PERM applications. Between October 2024 and September 2025, the six large India-linked technology services firms affected by the action submitted fewer than 1,400 applications out of approximately 117,849 recorded during the period.

This suggests that PERM certification is not a primary mechanism supporting the day-to-day workforce needs of these companies. The operational effect may therefore be less substantial than would be implied by treating the suspension as a complete prohibition on employing Indian professionals in America.

Tata Consultancy Services has indicated that the development is not expected to materially change its workforce strategy or customer delivery arrangements. The company has increasingly emphasised local recruitment and plans to expand its United States workforce over the coming years.

However, limited immediate revenue exposure does not eliminate employee-level consequences. A relatively small number of immigration applications can still involve highly skilled professionals occupying specialised positions that are difficult to replace.

Could the US decision increase hiring costs for Indian IT services companies?

The restrictions may accelerate the existing shift toward hiring workers already authorised to live and work permanently in the United States. Although local hiring reduces dependence on immigration sponsorship, it can carry different wage structures, recruitment costs and training requirements.

Indian technology services companies must also balance staffing requirements across multiple delivery locations. Some projects require employees to work directly with clients in the United States, while others can be delivered from India or other international centres.

The ability to relocate specialised employees has historically provided flexibility in managing customer projects. Additional uncertainty around immigration procedures may encourage companies to maintain larger locally hired teams or develop alternative staffing arrangements.

The financial consequences will depend on the proportion of affected workers, the availability of local skills and whether customers are willing to absorb any additional delivery costs. It would be premature to calculate a direct earnings impact without company-specific disclosures.

What does the US green card suspension mean for Indian IT stocks and market sentiment?

The restrictions arrive during a difficult period for India’s technology sector, which is already confronting weak discretionary spending in some client industries, changing demand for traditional software services and growing disruption from artificial intelligence.

Indian IT shares have substantially underperformed the broader equity market during 2026, with sector weakness reflecting several factors beyond immigration policy. Analysts have suggested that the new restrictions are more likely to affect sentiment and longer-term workforce planning than near-term revenue.

For Tata Consultancy Services, Infosys, Wipro and HCL Technologies, the fundamental commercial questions remain customer spending, deal conversion, utilisation, margins and the pace at which artificial intelligence changes service delivery.

Immigration uncertainty adds another potential operating constraint. Nevertheless, attributing the sector’s broader stock-market performance solely to the October PERM suspension would misrepresent the multiple pressures affecting Indian technology exporters.

The development may be more consequential for employees actively pursuing permanent residence than for consolidated company earnings.

What happens next for Indian technology companies affected by the PERM suspension?

The next important developments will involve clarification from the United States Department of Labor, any administrative challenges pursued by affected companies and the treatment of pending certification applications.

Individual employers may also provide further information to employees about how immigration sponsorship arrangements will be managed while the restrictions remain in place. Those communications will be particularly important for workers whose permanent residency plans depend on applications that have not completed the certification stage.

The broader policy direction remains restrictive, but the duration and ultimate legal outcome of the company-specific suspensions are not yet settled. Any subsequent reinstatement, modification or escalation would materially change the implications for employees and employers.

For now, the PERM action represents a significant immigration compliance development rather than a general prohibition on Indian technology professionals working in the United States.

What are the key takeaways from the US green card suspension affecting Indian IT companies?

• The United States suspended eight technology companies from the PERM labor certification programme, including Infosys, Tata Consultancy Services, Wipro and HCL Technologies.
• The restrictions also cover Cognizant Technology Solutions, Capgemini, Microsoft Corporation and Adobe Incorporated.
• PERM certification is an important stage in many employer-sponsored permanent residency applications, but it is legally distinct from the H-1B temporary work visa programme.
• The suspension does not automatically revoke every existing H-1B visa or previously issued green card held by employees of the affected companies.
• Workers whose permanent residency applications depend on pending or future PERM certification may face uncertainty and delays.
• Analysts expect relatively limited immediate financial consequences for large Indian technology services companies because their reliance on PERM sponsorship has declined.
• The longer-term implications include potential hiring costs, workforce planning constraints and employee retention challenges, depending on the duration and scope of the restrictions.