Indian IT firms filed few PERM applications compared with US tech majors

Indian IT firms have sharply reduced PERM filings and expanded local hiring in the US, with analysts expecting a limited industry impact from the programme's suspension

The US government’s suspension of major information technology (IT) companies, in­cluding software makers, Microsoft and Adobe, from the permanent labour certification (PERM) programme is unlikely to have a significant impact on Indian IT firms, analysts said, as their green card applications have declined sharply over the years. 

Data shows that Indian IT companies account for only a fraction of such applications compared to US multinationals. 

Tata Consultancy Services (TCS) applied for just two PERM filings for the US financial year 2026, down from 513 a year ago and 1,804 in FY2024. Infosys applied for 87 filings in FY24 with 100 per cent approval rate and no records after that, according to data from Perm Tracker, an independent dashboard that tracks US department of labour certification applications, processing times and employer approval rates. 

 

Wipro filed for 257 and 523 applications in FY24 and FY25 respectively, while HCL Ame­r­i­ca Inc filed for 96, 323 and 59 ap­plications in the last three years. 

 

  

However, sources confirmed that in the short term the US decision is expected to affect around 5,000 to 6,000 Indian technology professionals, who rely on employer-sponsored green cards for permanent residency in the US after entering on H-1B visas, and their families. 

Meanwhile, India on Friday slammed US President J D Vance’s description of foreign professionals as “indentured servants”, stating that resorting to terminology that carries painful historical and colonial legacy connotations is deeply offensive. It also criticised the US decision to restrict a key green-card processing programme for major global and Indian IT firms. 

Sources in the government said the move will further strain the India-US relations, which is already frayed because of the sta­lled negotiations over the trade deal, the fresh threat of US tariffs on India’s purchase of Russian oil and the White House’s proximity to Pakistan’s military and political establishment. 

New Delhi expects the US immigration policy on the issue to be sustained, notwithstanding the results of the November 3 mid-term elections. Prime Minister Narendra Modi is slated to visit the US in mid-December to attend the G20 Summit in Florida, and sources indicated that a final decision on his attendance would be taken closer to the date of the Summit. 

“PERM is the first rung on the ladder to a green card for thousands of professionals who’ve spent years on temporary status, playing by the rules. Freezing new and pending filings means people who did nothing wrong are stuck in the middle of a fight between the government and their employer,” Sukanya Raman, an US immigration advisor with Davies and Associates, told Business Standard. 

In a statement, India’s largest IT services provider, TCS said that while it will comply with any directive from the Department of Labor, it expects no impact of the suspension on its workforce strategy and customer engagement. 

“We have built a significant local workforce across 31 offices and delivery centres throughout the country. As we had announced earlier, we intend to hire an additional 15,000 people in the US over the next five years, to further augment our local workforce. Our PERM applications were in single digits in the last two years and hence we do not expect the suspension of the programme to impact our workforce strategy and customer engagements,” said a statement by the company. 

The permanent labour certification issued by the department of labour allows an employer to hire a foreign worker to work permanently in the US. In most instances, before the US employer can submit an immigration petition to the department of homeland security’s US Citizenship and Immigration Services, the employer must obtain a certified labour certification application from the labour department’s Employment and Training Administration.

 

Before applying, the company has to show that there are no qualified US workers for that role and hiring a foreign worker will not negatively impact the wages and working condition of American workers. Once PERM is approved, the employer can move ahead with the next steps for an employment based green card. 

Indian IT firms reduce H1-B dependancy 

Indian companies have been trying to reduce their dependency on H-1B and the PERM programme over the last few years as the US government, under President Donald Trump, has alleged that the routes are used by the technology companies to bring in cheap labour in the US to displace local workers. 

All Indian companies have stepped up hiring in the US by engaging with the country’s colleges and while the local hiring numbers have gone up, the gap between supply and demand still remains an issue. 

Nasscom said the number of employees transitioning from H-1B visas to permanent residency through the PERM process is relatively limited. 

“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 US as well,” said Nasscom. 

Push back from India 

Several senior executives and experts from the industry said that the suspension impacts new applications. “This will impact only those who were planning to apply under the PERM programme. Those who have applied do not get impacted. They may face stricter scrutiny,” said a senior executive on condition of anonymity. 

These comments have also divided the Indian talent ecosystem. A statement from PanIIT Alumni condemned the statement by the US government and asked several of its alumni to return to India. “These developments are a reminder to our own community. A career built on a visa is a career built on uncertain ground. India today offers the challenges and opportunities that were once only available abroad,” said the statement. 

Prabhat Kumar, IRS, chairman, PanIIT Alumni India said: “For decades we celebrated when our brightest minds left for American shores. It is time we asked what we lost in the process. A visa was never a stable foundation for a career, and this week’s events prove it. The IIT convenant was nation before self. The most exciting problems — and the greatest impact — now await our engineers at home. Build here. Scale here. Die here.” 

Meanwhile, Cyrus Mehta, founder and managing partner, Cyrus D Mehta & Partners PLLC, said, “I know that IT companies, targeted by the Trump administration, sponsor Indian workers because of their skills and their ability to get into niche areas that benefit the sponsoring company. Under the rules the sponsored worker must be paid the prevailing wage and so, the employer is not sponsoring them because they are cheaper than US workers. The company targeted by the Trump administration that is precluded from filing a PERM labour certification for an H-1B worker will not be able to stay in the US beyond the 6-year H-B limit. If a worker can be sponsored for a green card, there is less scope to keep them captive with one company as they will have mobility to seek better opportunities, create their own startups and even get higher than market wages, and all this will ultimately be a win for the US and India. The Trump administration’s actions is shortsighted in addition to being demeaning for H-2B workers by calling them indentured servants.” 

Cyrus D Mehta, founder of Cyrus D Mehta & Partners PLLC, an immigration lawyer in the US said that the Trump administration's actions is shortsighted in addition to being demeaning for H-2B workers by calling them indentured servants. "I know that IT companies targeted by the Trump administration sponsor Indian workers because of their skills and their ability to get into niche areas that benefit the sponsoring company. Under the rules the sponsored worker must be paid the prevailing wage and so the employer is not sponsoring them because they are cheaper than US workers," he said. 

 

"If a worker can be sponsored for a green card there is less scope to keep them captive with one company as they will have mobility to seek better opportunities, create their own startups  and even get higher than market wages, and all this will ultimately be a win for the US and India," he added.