The United States has suspended several prominent Indian technology companies, including Infosys, Tata Consultancy Services (TCS), Wipro, and HCL Technologies, from participating in its permanent Labour Certification Program (PERM). This move, announced by Vice President JD Vance and other officials, has brought renewed scrutiny to US work and study visa programs.
What is the PERM Program?
The PERM program is a crucial step for employers seeking to secure green cards for foreign workers already in the US, often those on H-1B visas. It allows companies to apply for permanent residency for their employees, forming a pathway to long-term immigration.
Accusations and Immediate Impact
The US administration has accused technology giants of abusing the PERM process, leading to the suspension. However, analysts believe the immediate operational impact on Indian IT firms may be limited, as the decision does not suspend existing H-1B employment. Hariselvan Radhakrishnan, Founder & CEO of HST Wealth, noted that while the immediate effect might be sentimental, an extended suspension could complicate employee retention, mobility, and increase costs related to localization, recruitment, and compliance.
Indian IT Sector's Evolving Strategy
NASSCOM, the Indian IT industry body, highlighted that Indian technology companies have significantly reduced their reliance on H-1B visas over recent years. These firms have actively expanded local hiring and built a strong domestic workforce within the US. Consequently, the number of employees transitioning from H-1B visas to permanent residency via the PERM process has become relatively limited.
"Indian IT stocks face a fresh sentiment risk after the US suspended TCS, Infosys, Wipro, HCL Technologies, Cognizant and Capgemini from filing new applications under the PERM employment-based green-card programme. The decision does not suspend existing H-1B employment, so the immediate operational impact may be limited; however, an extended suspension could complicate employee retention and mobility and increase localisation, recruitment and compliance costs," said Hariselvan Radhakrishnan, Founder & CEO of HST Wealth.
Company-Specific Data and Market Reaction
Reports indicate a notable decline in PERM applications for some major players. Infosys Ltd. saw its applications fall to nil in 2024 and 2025, down from 781 in 2023. TCS's applications decreased to 303, from 932 in 2024 and 505 in 2025. Wipro recorded 204 PERM applications in 2025, compared to nil in 2024.
Following the news, American Depository Receipts (ADRs) for these companies showed mixed reactions. Infosys ADRs settled 1.42 percent higher at $10.70 apiece, while Wipro ADRs remained flat at $1.67 apiece.
NASSCOM reaffirmed the industry's commitment to compliance, stating, "Indian technology companies operate across more than 80 countries and have consistently demonstrated their commitment to complying with local laws and regulatory requirements. We are confident that they will continue to adhere to applicable regulations in the U.S. as well."