The Donald Trump administration has tightened its approach to US immigration rules governing the employment of foreign workers, raising questions about the potential implications for Indian IT companies operating in the American market.
Cognizant, Infosys, Tata, Wipro, Capgemini and HCL are among the companies mentioned in reports concerning the developments. However, claims that these companies have been suspended from the PERM programme require official confirmation, and the status of each company needs to be verified separately.
The US administration has maintained that visa programmes for foreign workers should be used in accordance with their intended purposes. These programmes are designed to help US companies access workers with the required skills. However, concerns have been raised that misuse could affect employment opportunities and wages for domestic workers.
Against this backdrop, the H-1B visa system and the employment-based green card process have come under increased scrutiny.
Indian IT companies have long provided services in the US market across software development, cloud computing, cybersecurity, artificial intelligence and other technology segments. Part of their operations depends on professionals being deployed across countries according to project requirements. Changes in US immigration policies could therefore affect hiring, employee transfers and long-term employment planning.
The report also refers to US Vice President JD Vance raising questions about Microsoft's hiring policies. Vance alleged that the company had laid off a large number of American employees while also using the H-1B visa system and the green card process for foreign workers.
According to the details provided, the figures cited included approximately 6,000 American employees laid off, alongside 6,300 H-1B visas and around 3,000 green card-related cases at Microsoft. These figures and allegations require verification against the relevant official records.
Vance argued that arrangements for hiring foreign workers should not be used to reduce wages for American employees or limit their employment opportunities.
The issue highlights the debate in the US over balancing domestic employment protection with the recruitment of global talent. While the protection of jobs for American workers remains a stated priority, technology companies also rely on specialists from across the world to support their operations.
PERM, or Permanent Labor Certification, is an important process administered by the US Department of Labor. Employers use it as part of the process of sponsoring foreign employees for employment-based green cards. Under the process, an employer generally must demonstrate that there are not sufficient qualified, willing and available American workers for the position.
The process also aims to ensure that hiring a foreign worker does not adversely affect the wages and working conditions of American employees performing similar work.
After obtaining labor certification, an employer can generally file an immigrant petition through Form I-140 with US Citizenship and Immigration Services (USCIS).
The PERM process is separate from the H-1B visa programme. H-1B visas are used for temporary employment in specialty occupations, while PERM is associated with certain categories of employment-based permanent residency. Any restrictions affecting access to the PERM process could therefore delay or complicate companies' plans to sponsor eligible foreign employees for green cards.
If an actual suspension or restriction is imposed on a company's participation in the PERM process, sponsoring affected employees for permanent residency could become more complicated. This could affect employees' long-term career plans, talent management and the human resources strategies of companies operating in the US.
However, an impact on a company's PERM process would not automatically mean that all its foreign employees would immediately lose their jobs or existing visas. The actual implications would depend on the scope of the action, the applicable rules and the immigration status of each employee.
