On October 8, the US government suspended eight major tech companies from the PERM labour certification programme, the first step to green cards and permanent residency. According to reports from Business Standard, the affected companies include Microsoft, Adobe, Tata Consultancy Services (TCS), Infosys, HCLTech, Wipro, Capgemini and Cognizant. This move restricts highly skilled foreign workers like Sanjay Kumar, a New Jersey resident whose H1-B visa extension is currently stuck in a queue, from living and working in the US for these companies.
The suspension creates significant uncertainty for Indian IT workers already in the US. As reported by Business Standard, Vivek Rastogi, who has spent four years in the US on an H-1B visa, is waiting for his employer to start green card application process but worries about extra scrutiny given the eight companies include large Indian IT service players. Workers face two choices: send affected staff across the border to Canadian offices or ask them to return to their home country. According to industry sources, visa clearance has come to a near-halt with consulates releasing very few dates for applications.
Despite the suspension affecting major Indian IT companies, the immediate impact may be limited. According to Business Standard, TCS executive director Aarthi Subramanian stated that the company no longer relies on H-1B visa mechanisms, with more than 50% of North American employees being local hires. However, industry experts project 10-30 basis points of operating margin pressure over the next 12 months due to retaining experienced US staff and hiring replacements. Gaurav Vasu, CEO of Unearth Insights, estimates potential margin pressure could rise to 30-75 basis points if the suspension persists for several years.
The visa suspension may accelerate growth in global capability centres (GCCs) in India. According to Business Standard, Avinash Vashistha, chairman of Tholons, expects the first wave to be expansion of existing India GCCs as companies shift roles they can no longer fill in the US. New GCCs will follow through 2027, with mid-size US and European enterprises in healthcare, insurance, retail, manufacturing and energy sectors likely to establish capabilities in India. Companies may move senior employees stuck in long green card queues into India leadership roles, bringing global experience and client context to local operations.
