The US government’s decision to suspend several major technology and IT services companies from the Permanent Labour Certification Programme (PERM) has created fresh uncertainty for Indian professionals pursuing long-term careers in America. Companies named by US Labour Secretary Keith Sonderling include Cognizant, Infosys, Tata, Wipro, HCL and Capgemini, alongside Microsoft and Adobe.
Announced on October 8, 2026, the move forms part of the Trump administration’s broader crackdown on employment-based immigration. US officials have cited alleged misuse of foreign-worker programmes, including concerns about fraudulent filings, wage undercutting and displacement of American workers. These are the administration’s stated grounds for the action and do not establish wrongdoing by every company named.
For Indian IT professionals, the key concern is how the suspension could affect employer-sponsored green card applications, career decisions and plans to settle in the US.
Why Has the US Suspended Green Card Filings?
The US administration has argued that foreign-worker programmes must prioritise American workers. Sonderling cited the scale of foreign-worker sponsorship by the affected companies as part of the justification.
According to figures shared by the Labour Secretary, these companies had sought permanent residency for nearly three million foreign workers since 2009, received more than 230,000 H-1B visa approvals and secured over 100,000 permanent labour certifications.
The administration has presented the suspension as part of efforts to address what it describes as fraud and misuse in employment-based immigration. However, the figures cited do not establish that all applications were improper or that every foreign worker sponsored by these companies displaced an American employee.
The latest action follows an earlier suspension involving Cognizant and extends scrutiny to additional major technology companies, widening its potential impact on Indian professionals working in the US.
What Is PERM and Why Does It Matter?
The Permanent Labour Certification Programme, commonly known as PERM, is an important step in many employer-sponsored employment-based green card applications. Employers generally file for labour certification through the US Department of Labor before proceeding with the next stage of the process.
The process typically involves obtaining a prevailing wage determination and completing prescribed recruitment steps to establish that hiring a foreign worker will not adversely affect the wages, working conditions or job opportunities of US workers.
According to Sonderling’s announcement, the government will not accept new applications or process pending applications involving the companies named in the suspension. This could leave employees with applications underway uncertain about their timelines, while professionals expecting employers to initiate sponsorship may face delays.
The exact impact will depend on the suspension’s scope, duration and implementation, as well as any subsequent legal or administrative developments.
How Could Indian IT Professionals Be Affected?
For many Indian professionals, permanent residency is central to long-term career and personal planning. Uncertainty over green card sponsorship could complicate decisions about changing jobs, accepting internal transfers, relocating or making future financial commitments in the US.
Employees with pending applications may need clarity on how the restrictions apply to their cases. Changing employers may not automatically resolve the issue, as a new employer would need to assess the individual’s circumstances and its ability to support the relevant immigration process.
Importantly, the PERM suspension does not automatically cancel every H-1B visa or existing work authorisation associated with the affected companies. PERM is linked to many permanent residency applications, while H-1B provides temporary employment authorisation for eligible specialty-occupation workers. The two processes serve different purposes.
Professionals should therefore avoid assuming that their immigration applications have been permanently cancelled or that they must leave the US. The implications will vary according to individual circumstances and the applicable rules.
What It Means for Indian IT Companies
The move adds another challenge for companies such as Tata Consultancy Services, Infosys, Wipro, HCLTech and Cognizant, which serve US clients across software development, cloud computing, cybersecurity and digital transformation.
Uncertainty around permanent residency sponsorship could complicate talent retention, recruitment and internal mobility, particularly for employees with long-term commitments in America. Companies may need to communicate clearly with affected staff and assess how the restrictions could influence workforce planning.
Responding to the announcement, industry body NASSCOM highlighted that Indian technology companies have reduced their dependence on H-1B visas over the years while expanding local hiring and building stronger workforces in the US. It also emphasised the contribution Indian IT firms make to American businesses through technology services.
Although local hiring may reduce reliance on international employee transfers, it does not resolve the concerns of Indian professionals already working in the US who depend on employer-sponsored green cards.
What Happens Next?
The next steps will depend on how the US government implements the suspension, how pending applications are treated and whether affected companies can pursue administrative or legal remedies. Greater clarity on the duration and scope of the restrictions will be critical for employers and employees.
Until further details emerge, Indian professionals should seek case-specific guidance from qualified US immigration counsel before making decisions about employment, relocation or immigration status.
The development highlights how changing immigration rules can shape career mobility and long-term planning for Indian technology talent. For affected professionals, clarity on individual applications and the future of employer sponsorship will be crucial to understanding their options.
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