For Indian technology professionals, a job in the United States can mean more than a higher salary or international experience. For some, it is also a long-term plan to settle there, bring their families over and build a life beyond a temporary work visa.
That plan has become more uncertain after the US government suspended eight major technology and IT services companies from a programme that helps foreign workers secure employment-based green cards.
Announced on 8 October 2026, the move affects companies including Tata Consultancy Services (TCS), Infosys, Wipro and HCL Technologies. US officials cited alleged fraud and concerns about the displacement of American workers. The suspension has also brought Microsoft, Adobe, Cognizant and Capgemini into focus.
But what exactly has the US suspended? And does this mean Indian employees working for these companies can no longer stay in America?
What Is The US Government Suspending?
The US administration has suspended the affected companies from the Permanent Labour Certification programme, known as PERM.
The announcement came from Vice President JD Vance and Labour Secretary Keith Sonderling on 8 October. The US Labour Department will stop accepting new PERM applications from the affected employers and halt the processing of their pending applications, according to reports.
PERM is a key step in the employment-based green card process, but it is not the green card itself. The suspension restricts a route to permanent residency through the named employers; it does not, by itself, mean every employee has lost their job or existing immigration status.
Which Companies Have Been Suspended?
The eight companies named by US officials are:
Microsoft
Adobe
Cognizant
Infosys
Tata Consultancy Services (TCS)
Wipro
HCL Technologies
Capgemini
The list includes both US technology companies and IT services firms with significant international operations. Indian IT professionals may be particularly concerned because several of the affected companies employ skilled workers in the US and sponsor employment-based immigration applications.
What Is PERM, And How Does It Lead To A Green Card?
A green card allows a foreign national to live and work permanently in the US. For many skilled professionals, one route to obtaining it begins with an employer-sponsored application through the PERM programme.
The process starts when an employer offers a permanent job to a foreign worker. The company must then test the US labour market by following recruitment requirements and demonstrating that there are no sufficient US workers who are able, willing, qualified and available for the role. It must also meet the applicable wage and working-condition requirements.
Once the employer completes these steps, it can apply to the US Department of Labour for PERM certification. If the application is approved, the employer can generally move to the next stage by filing an immigrant petition with US Citizenship and Immigration Services (USCIS). The worker must then meet the remaining requirements to obtain permanent residency.
The PERM process is designed to protect American workers' wages, working conditions and job opportunities. However, PERM approval does not guarantee a green card.
The latest suspension interrupts this process for employees whose employers are affected, potentially delaying their path to permanent residency in the US.
Why Has The US Taken This Step?
The Trump administration says the action is intended to protect American workers and address alleged misuse of employment-based immigration programmes.
During the announcement, Vance accused Microsoft of abusing the system and argued that companies could use recruitment processes to create the appearance that no suitable American candidates were available, before hiring foreign workers instead.
The administration's broader concern is that employers may use foreign labour to fill roles at lower wages or displace American employees. These are allegations and policy justifications, not proof that every affected company has committed wrongdoing.
PERM already requires employers to follow labour-market testing and wage rules. The new suspension signals a more aggressive approach to enforcing those requirements against the named firms while the government examines suspected violations.
How Will This Affect Indian Professionals?
The biggest concern is for Indian employees who are already in the US and whose employers were sponsoring their green card applications.
The impact will depend on where each employee stands in the process.
Those waiting for PERM approval: Their applications could face delays because the Labour Department has stopped processing pending applications involving the affected employers.
Those planning to begin the process: Their employers cannot proceed with new PERM applications while the suspension applies.
Those working on H-1B visas: The PERM suspension does not automatically cancel an existing H-1B visa or employment authorisation. However, workers who rely on employer sponsorship for long-term residency may have fewer options in the near term.
Those who already have green cards: The announcement concerns access to the PERM process. It does not, by itself, revoke green cards that have already been granted.
The practical difficulty is that the green card process can take years. A disruption at the labour certification stage could delay an employee's long-term plans, including decisions about family, career moves and where to settle.
The precise consequences will depend on the employee's immigration status, application stage and any further government directions. Workers should seek individual immigration advice rather than assume that the suspension automatically changes their right to remain in the US.
Will This Hurt Indian IT Companies?
The immediate impact on business may be more limited than the effect on individual employees' plans.
Reuters reported on 9 October that TCS did not expect the suspension to have a material impact on its workforce strategy or client engagements. The company said its PERM applications had been in the single digits over the previous two years and reiterated its plan to hire 15,000 additional employees in the US over the next five years.
TCS also pointed to its focus on local hiring, including campus recruitment, as a reason for its limited reliance on the programme.
That response offers some context, but it should not be taken as a guarantee that all affected employers or their employees will experience no disruption. Companies with different hiring strategies and numbers of pending applications could face different consequences.
Over time, the suspension could encourage employers to rely more heavily on locally recruited US workers, adjust their staffing plans or reconsider how they transfer skilled employees across borders. For Indian professionals hoping to settle permanently in America, the bigger concern is uncertainty over when, or whether, their employer-sponsored applications can move forward.
What Happens Next?
The immediate question is whether the affected companies can resolve the concerns raised by US authorities and regain access to the programme. Until there is further clarity, employees with pending applications may need to wait for developments or discuss alternative options with qualified immigration advisers.
For now, the suspension is best understood as a restriction on a specific green card pathway through eight named companies, rather than a blanket ban on Indian technology workers entering or working in the US.
For young Indian professionals weighing an overseas career, the episode is another reminder that an international job offer and a long-term right to live in another country are two different things.
TL;DR | News At A Glance
What is the US PERM green card programme?
PERM, or Program Electronic Review Management, is the US Department of Labour's labour certification process. It allows eligible employers to sponsor foreign workers for employment-based green cards after meeting labour market requirements.
Which companies have been suspended from the US PERM programme?
The eight companies named are TCS, Infosys, Microsoft, Wipro, HCL Technologies, Cognizant, Adobe and Capgemini.
Why has the US suspended IT companies from the PERM programme?
US officials cited alleged visa-related fraud and concerns about protecting American jobs and wages.
How will the US PERM suspension affect Indian IT professionals?
Indian employees whose employers have pending or planned PERM applications could face delays in their employment-based green card process. The impact will depend on their employer and the stage of their application.
Will Indian H-1B visa holders lose their US visas because of the PERM suspension?
No, not automatically. The suspension does not, by itself, cancel existing H-1B visas, work authorisation or approved green cards.
Can Indian IT workers still get a US green card?
The suspension restricts the PERM route through the affected employers while it remains in force. The availability of other immigration pathways depends on individual eligibility and applicable US immigration rules.
What has TCS said about the US green card suspension?
TCS said it does not expect a material impact on its workforce strategy or client engagements, citing its limited reliance on PERM applications and focus on hiring workers locally in the US.
