US Suspends Infosys, TCS, Wipro, HCL From Green Card Programme; What It Means For Indian IT Firms

The US has suspended Infosys, Tata Consultancy Services (TCS), Wipro and HCL Technologies from a key employment-based green card programme, potentially affecting how some of India's largest IT companies sponsor employees for permanent residency in their biggest overseas market.

The US Department of Labor on Thursday suspended Cognizant, Infosys, TCS, Wipro, HCL Technologies and Capgemini from the Permanent Labor Certification, or PERM, programme, while Microsoft and Adobe were also included in the action. The department will not accept new or process pending permanent labour certification applications involving the companies, US Labor Secretary Keith Sonderling said.

PERM is a key step for US employers seeking to sponsor eligible foreign workers for employment-based green cards, making the suspension significant for employees of the affected companies who are currently going through, or were expected to enter, the permanent residency process.

The move, however, does not amount to a blanket suspension of H-1B visas for Infosys, TCS, Wipro or HCL employees. It comes as the Trump administration intensifies scrutiny of foreign-worker programmes over alleged abuse and pushes companies to prioritise American workers.

US Action Against Infosys, TCS, Wipro And HCL

Announcing the action, Sonderling said the Labor Department was suspending some of the world's largest IT outsourcing companies from the permanent labour certification programme, naming Cognizant, Infosys, TCS, Wipro, HCL Technologies and Capgemini.

“We will not accept any new or process any pending permanent labor certification applications involving these companies,” Sonderling said.

Microsoft and Adobe were also suspended, broadening the action beyond outsourcing companies as Washington increases scrutiny of how large employers use foreign-worker programmes.

The Trump administration has argued that companies should turn to overseas workers when suitable American candidates cannot be found, rather than use immigration programmes to replace domestic hiring. US Vice President JD Vance backed the latest action, saying companies should first look to hire American workers before seeking talent from overseas.

The Labor Department's action comes amid a wider investigation into alleged fraud and abuse involving foreign-labour programmes, putting the hiring and immigration practices of large technology employers under increased scrutiny.

What PERM Suspension Means For Indian IT Firms

The immediate impact is on permanent labour certification applications involving the affected companies. Infosys, TCS, Wipro and HCL Technologies will not be able to get new PERM applications accepted by the Labor Department while the suspension remains in place, while applications already pending with the department will not be processed.

PERM certification is generally required before an employer can move ahead with certain employment-based green card applications. Employers use the process to demonstrate that there are no sufficient qualified, willing and available US workers for a particular role and that employing a foreign worker would not adversely affect wages and working conditions of comparable US workers.

That makes the latest action particularly relevant for Indian IT companies, which have large operations in the US and employ workers across major client projects in the country.

The restriction, however, is specific to the PERM process and does not by itself cancel H-1B visas held by employees of the affected companies.

The US remains the largest market for India's IT services industry, making changes to employment and immigration rules closely watched by Infosys, TCS, Wipro, HCL Technologies and their employees as Washington tightens oversight of foreign-worker hiring.

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