US suspends PERM visas for major tech firms, leaving Indian IT staff in limbo
Indian IT employees on H-1B visas face uncertainty after the U.S. halted PERM certifications for eight tech firms, prompting possible moves to Canada or back home.
On October 8 the U.S. Department of Labor announced a suspension of the PERM labor-certification program for eight large technology and outsourcing companies, including Microsoft, Adobe, Tata Consultancy Services, Infosys, HCLTech, Wipro, Capgemini and Cognizant.
Affected firms can either transfer employees to Canadian offices—still subject to U.S. immigration review—or send them back to their home countries. Consular services in India are issuing few visa dates, further complicating travel for those whose extensions are approved but not stamped. Immigration lawyer Cyrus Mehta warned that one outlet administration is adopting a hostile stance toward immigrants, including tightening H-4 spousal work rules.
While firms like TCS claim reduced reliance on PERM hires and a shift toward local talent, analysts estimate a short-term operating-margin hit of 10-30 basis points and potential longer-term pressure if the suspension endures. Experts also foresee a gradual rise in Indian global capability centres as companies relocate roles they can no longer staff in the U.S.
Why it matters
The visa suspension jeopardizes thousands of Indian tech workers' jobs and could shift offshore staffing to India.
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