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US Suspends Major Tech Firms from Green Card Program as TCS Plays Down Impact

Reported by Imran Qureshi (Staff Writer) · Indian Express - India ·

Verified — Confirmed by a second source: The Hindu - National

Confirmed by a second source: The Hindu - National

Important
US Suspends Major Tech Firms from Green Card Program as TCS Plays Down ImpactPhoto: Wikimedia Commons

US Suspension

The United States government has suspended several major Indian and global IT firms from the Permanent Labor Certification Program, known as PERM, which allows skilled foreign workers to gain permanent residency and green cards. The Trump administration cited alleged fraud and claimed that foreign workers secured jobs at the cost of American workers. Affected companies include Cognizant, Infosys, Tata, Wipro, HCL, Capgemini, Microsoft, and Adobe.

Company Response

Tata Consultancy Services Limited stated that it does not expect the suspension to affect its workforce strategy or client engagements. TCS noted that its PERM applications were in single digits over the past two years, and that it relies instead on hiring local talent through campus recruitment across its 31 offices and delivery centers in the United States. The firm also reaffirmed its previous plan to hire 15,000 additional workers in the US over the next five years.

Political Reactions

Congress leader Pawan Khera criticized Prime Minister Narendra Modi over the US move, alleging that the Prime Minister failed to take a firm stand and allowed US President Donald Trump to pressure him. Khera also cited remarks from Rahul Gandhi regarding trade and foreign policy negotiations with Washington.

Context

The PERM process is a vital stage for H-1B visa holders seeking employment-based permanent residency in the United States. Changes to US immigration policies directly affect Indian technology companies that depend heavily on skilled worker mobility for their overseas operations.

ExplainerWhy this matters

What Happened

The US government suspended major IT companies from the Permanent Labor Certification Program, or PERM, which is a required first step for employers to sponsor foreign workers for permanent residency and employment-based green cards.

Why It Matters

This policy change affects how technology firms manage their global workforce and deploy talent to US projects. While major companies like TCS have downplayed the direct operational impact due to low application volumes, stricter US immigration rules create broader uncertainties for tech outsourcing and the career paths of skilled foreign professionals.

What Happens Next

Firms will navigate the Department of Labor directives and adjust their recruitment strategies, focusing increasingly on local hiring models in the US market while monitoring further regulatory announcements from Washington.

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