US PERM suspension may have limited impact on Indian IT firms

The US has suspended eight firms, including major Indian IT companies, from the PERM programme. The move may have limited operational impact because their green card filings have already dropped sharply.Image used for representational purposes onlyWashington,Oct 10, 2026 19:44 ISTIndian IT companies affected by the US decision to suspend eight firms from the permanent labour certification programme appear to have made fewer green card-related applications in recent years, suggesting the move may have limited impact on their operations. The US action covers Tata, Infosys, Wipro and HCL, along with Capgemini, Cognizant, Microsoft and Adobe.The suspension was announced on Thursday, with the US contending that the practice had shut out Americans from the job market. However, application data and industry responses indicate that Indian technology companies have already reduced their use of the Permanent Labour Certification, or PERM, route.An analysis of PERM applications shows that Tata Consultancy Services filed just two applications in the US financial year 2026, down from 513 in 2025 and 1,804 in 2024. HCL filed 59 PERM applications in 2026, compared with 323 in 2025. Wipro filed 257 applications in 2024 and 523 in 2025. Of the 257 applications filed by Wipro in 2024, 169 were denied and 88 were withdrawn by the company. Infosys filed 87 PERM applications in 2024, while data for 2025 and 2026 was not available.According to the website PERM Tracker, Capgemini made 98 PERM applications in 2026, compared with 361 in 2025 and 300 in 2024. Cognizant filed 1,236 PERM applications in 2024, while data for 2025 and 2026 was not available. "Indian IT companies accounted for less than 1,400 of the 117,849 PERM certifications last year. Less than two per cent. The direct impact may therefore be smaller than it first appears," Vineet Nayar, former CEO of HCL Technologies, said in a post on X.NASSCOM and TCS also said PERM applications by Indian firms had been declining. "Our PERM applications were in single digits in the last two years, and hence we do not expect the suspension of the program to impact our workforce strategy and customer engagements," TCS said in a statement. NASSCOM said Indian technology companies had significantly reduced their dependence on H-1B visas over the years, while steadily expanding local hiring and building a strong domestic workforce in the US. "Consequently, the number of employees transitioning from H-1B visas to permanent residency through the PERM process is also relatively limited," the industry body said. A permanent labour certification issued by the Department of Labour allows an employer to hire a foreign worker to work permanently in the United States. A PERM application is considered the first step for professionals on work visas to obtain a green card, or permanent residency, in the US. The latest US action comes at a time when Indian IT companies and the industry say their use of this route has already fallen.With PTI Inputs- Ends