The US has suspended eight technology companies, including TCS, Infosys, Wipro, HCLTech, Cognizant, Capgemini, Microsoft and Adobe, from the PERM labour-certification programme. Announced on October 8, 2026, the move follows allegations of misuse of employment-based immigration programmes. The suspension could delay some employer-sponsored Green Card applications, but it does not automatically cancel existing H-1B visas. TCS said on October 9 that it does not expect the move to affect its workforce strategy or customer engagements.
- Eight major technology companies have been suspended from the US PERM programme.
- The decision could affect some Indian professionals seeking employer-sponsored Green Cards.
- Existing H-1B visas are not automatically cancelled.
- TCS said its PERM applications had been in single digits over the previous two years.
- The company reiterated its plan to hire 15,000 additional employees in the US over five years.
Why Has the US Suspended Major IT Companies?
The Trump administration announced the suspensions on October 8, citing alleged misuse of employment-based immigration programmes and concerns about American workers losing job opportunities.
The firms that are mentioned are TCS, Infosys, Wipro, HCLTech, Cognizant, Capgemini, Microsoft, and Adobe. US officials have been worried about foreign workers being used by employers, but the claims should not be taken as proof of wrongdoing by all impacted companies.
The move has caught the attention of India as many of the corporations have large Indian workforces and operations in the US. The practical impact will depend on the extent and length of the restrictions, and how individual immigration applications are dealt with.
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Which Companies Are Affected by the PERM Suspension?
| Company | Business category | Potential impact |
|---|---|---|
| Tata Consultancy Services (TCS) | Indian IT services | Employer-sponsored Green Card processing |
| Infosys | Indian IT services | PERM access |
| Wipro | Indian IT services | PERM access |
| HCLTech | Indian IT services | PERM access |
| Cognizant | IT services | PERM access |
| Capgemini | IT consulting and services | PERM access |
| Microsoft | US technology company | Employment-based immigration processing |
| Adobe | US software company | Employment-based immigration processing |
The suspension concerns access to the PERM programme. It is not a blanket ban on these companies operating or hiring in the United States.
What Is PERM and How Does It Differ From an H-1B Visa?
PERM stands for Program Electronic Review Management. It is the US Department of Labor’s system for processing permanent labor-certification applications. For many employer-sponsored Green Card cases, it is an important step before the employer can file an immigrant petition.
An H-1B visa, by contrast, allows eligible foreign professionals to work temporarily in qualifying specialty occupations.
| Feature | PERM programme | H-1B visa |
|---|---|---|
| Purpose | Supports certain employer-sponsored Green Card applications | Allows temporary employment in eligible occupations |
| Immigration status | A step towards permanent residency | Temporary non-immigrant status |
| Employer involvement | Employer sponsors the labour-certification process | Employer generally files the visa petition |
| Grants a Green Card? | No | No |
| Automatically cancelled by this suspension? | Access is restricted for affected employers | No |
The distinction is important for Indian professionals. The PERM suspension does not automatically cancel an existing H-1B visa. However, some workers approaching the usual six-year H-1B limit may need legal advice because eligibility for certain extensions can depend on the progress and timing of their employment-based Green Card process.
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How Could the Suspension Affect Indian Workers?
The impact will depend on the stage of each employee’s application.
- Workers who have not begun PERM: If the company is unable to file a new petition, their employer-sponsored Green Card process may be delayed.
- Workers with pending applications: They should check with their employer or immigration lawyer to determine if their unique case is affected.
- Workers with approved PERM certification: Approval doesn’t mean you got a Green Card. Further immigration formalities may be required.
- H-1B workers who are close to the six-year cap: They should determine if they are eligible for any extension provisions that may apply.
Indian applicants currently wait long in employment-based immigration categories. The October 2026 Visa Bulletin from the US Department of State showed the EB-2 final-action date for India at November 1, 2013, and the EB-3 date at January 1, 2014. These dates define which priority dates are available for final action. They do not ensure that you will be approved for a Green Card right away.
What Did TCS Say About the Suspension?
On October 9, TCS said it had taken note of the announcement and would comply with directives from the US Department of Labour.
The company stated that its PERM applications had been in single digits over the preceding two years and that it did not expect the suspension to affect its workforce strategy or customer engagements.
TCS also reiterated its plan to hire an additional 15,000 employees in the US over five years. Its response indicates that it expects limited disruption to its wider US operations, although individual employees could still face immigration-related delays.
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What Is Nasscom’s Position?
Nasscom has highlighted the difference between the PERM programme and the H-1B visa system. PERM relates to labour certification for certain permanent-residency applications, while H-1B permits temporary employment.
The industry body’s reported response has also pointed to Indian technology companies’ growing emphasis on local US hiring. However, the long-term effect of the suspension will depend on how US authorities implement the restrictions and whether further changes follow.
What Should Indian IT Professionals Do Now?
Employees of the affected companies should:
- Check the status of their individual immigration applications.
- Ask their employer whether any planned or pending PERM filing is affected.
- Review H-1B expiry dates and seek legal advice if an extension may be needed.
- Follow updates from the US Department of Labour, USCIS and the US Department of State.
Workers should not assume that their visas have been cancelled or their Green Card applications rejected solely because of the announcement.
FAQs
1. Why has the US suspended Indian IT companies from PERM?
Ans: The administration cited alleged misuse of employment-based immigration programmes and concerns about American workers’ job opportunities.
2. Which companies are affected?
Ans: TCS, Infosys, Wipro, HCLTech, Cognizant, Capgemini, Microsoft and Adobe.
3. Will existing H-1B visas be cancelled?
Ans: No. The PERM suspension does not automatically cancel existing H-1B status.
4. Can affected employees still get a Green Card?
Ans: Their options depend on their case stage, applicable rules and whether alternative routes are available.
5. What did TCS say?
Ans: TCS said it did not expect the suspension to affect its workforce strategy or customer engagements and reiterated its plan to hire 15,000 additional US employees over five years.
6. Does this stop Indian IT companies from hiring in the US?
Ans: No. The suspension concerns the PERM programme, not a general ban on US hiring or business operations.
7. Where can workers check official updates?
Ans: Check the US Department of Labor, USCIS, and the US Department of State’s Visa Bulletin.
Sources & References
- The Indian Express – US PERM suspension explained
- The Economic Times – IT companies’ response
- The Week – H-1B workers and industry reaction
- US Department of State – October 2026 Visa Bulletin
Disclaimer: This article is for informational purposes and is not legal or immigration advice. Individual circumstances and the applicable rules determine the effect on each worker.
