Eight IT Companies, Including TCS and Infosys, Suspended from US Green Card Program: Impact on Indian Professionals
In a significant setback for the Indian IT sector, the Trump administration has suspended eight major technology companies from the Permanent Labour Certification Programme (PERM), a critical pathway for foreign workers seeking green cards in the United States. This decision could impact tens of thousands of Indian IT professionals, as companies like TCS, Infosys, Microsoft, Wipro, and Cognizant are now barred from participating in the program. Indian professionals represent over 70% of H-1B petitions approved annually, making this development particularly consequential for the community.
What is PERM?
PERM serves as a bridge for temporary foreign workers in the U.S. to transition to permanent residency. Employers must obtain certification from the Department of Labor (DoL) to confirm that no qualified U.S. workers are available for the position before sponsoring a foreign worker’s green card. This certification also ensures that hiring a foreign national will not negatively impact U.S. wages or working conditions. The suspension of these eight firms halts their ability to offer employment-based green cards, although it does not revoke existing H-1B visas or prevent them from employing foreign nationals.
What has been announced?
The suspension was announced by U.S. Vice President J.D. Vance, Labor Secretary Keith Sonderling, and Attorney General Todd Blanche as part of the U.S. Anti-Fraud Task Force initiative. Sonderling stated that the Department of Labor is suspending major IT outsourcing firms, including Cognizant, Infosys, Tata, Wipro, HCL, and Capgemini, due to ongoing investigations. Microsoft and Adobe were also included in the suspension list, facing multiple federal inquiries. Vance criticized Microsoft for laying off 6,000 American workers while simultaneously obtaining over 6,000 H-1B visa approvals.
Why has the Trump administration taken this step?
The administration’s decision follows allegations that the PERM system has hindered job opportunities for American workers. Rajiv Dabhadkar, founder of the National Organization for Software and Technology Professionals, noted that the focus is shifting from merely assessing the qualifications of H-1B workers to scrutinizing the business models used to recruit foreign labor. Allegations suggest that some employers may exploit foreign workers, leading to wage suppression and other abuses. Dabhadkar emphasized that the investigation should target employers and intermediaries rather than Indian professionals themselves.
What is the impact on Indian IT professionals?
The suspension of major IT companies from the PERM program introduces significant uncertainties for Indian IT professionals. The pathway to securing jobs and permanent residency in the U.S. is becoming increasingly challenging. With additional fees for H-1B visas and the suspension of firms from PERM, the situation is dire for many who have invested years in their careers in the U.S. While the suspension does not affect the validity of H-1B status for current employees, it poses a serious challenge for those nearing the six-year limit who rely on the PERM process to extend their stay.
Xiao Wang, CEO of Boundless Immigration, categorized the impact on Indian IT professionals into two groups. For those already in the U.S. at suspended firms, their H-1B status remains intact, but they face uncertainty regarding the green card process. For prospective IT professionals looking to enter the U.S. through these companies, the path has become significantly more difficult. Wang noted that the combination of the PERM suspension, the proposed $100,000 H-1B fee, and other regulatory changes is dismantling the staffing model that has historically facilitated the entry of Indian engineers into the U.S.
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