US Deals Major Blow to Indian IT Firms as Green Card Sponsorships Reportedly Suspended

*Washington, October 9 (Report Digital):* The United States government has reportedly suspended PERM employment-based green card sponsorship processing for several major technology companies amid concerns over the recruitment of foreign workers and the protection of jobs for American citizens. The companies named in media reports include major Indian IT firms such as Infosys, Tata Consultancy Services (TCS), Wipro and HCL, alongside US technology companies Microsoft and Adobe and other multinational firms.

According to media reports, the action relates to the PERM labour certification process, which is part of the employment-based permanent residency system, and concerns over the alleged misuse of foreign-worker recruitment programmes, including the H-1B visa system. The US administration has raised concerns that certain recruitment practices could adversely affect employment opportunities for American workers. However, these allegations should not be treated as proven violations or final judicial findings against every company named.

Reports attributed to US Vice President JD Vance indicate that the companies involved had filed applications relating to approximately three million foreign workers since 2009. The figure refers to applications, according to the reported claim, and should not automatically be interpreted as the number of workers who were approved, entered the United States or obtained permanent residency.

US Labor Secretary Keith Sonderling has also reportedly adopted a strong stance on the issue. Media reports have attributed to him the phrase, “We are cutting off the head of the snake,” in reference to the administration’s action against alleged abuses. The full context of the statement and its original official transcript would need to be verified before interpreting it as a direct personal or national insult. What Is the PERM Programme?

PERM, or Program Electronic Review Management, is the US Department of Labor’s labour certification process used in many employment-based green card cases. It generally requires an employer to demonstrate that there are no sufficient, able, willing and qualified US workers available for the relevant position and that hiring a foreign worker will not adversely affect the wages and working conditions of similarly employed American workers.

PERM certification is one stage in the employment-based permanent residency process. Suspending or restricting PERM processing does not automatically cancel the existing visas of all employees working for the affected companies. Nor does it amount to a blanket ban on green cards for Indian nationals or a complete suspension of the H-1B visa programme. Potential Impact on India’s IT Industry

Indian IT companies, including Infosys, TCS, Wipro and HCL, have long provided software development, consulting, technology support and other IT services to American businesses. Their operations have relied on a combination of local recruitment, international assignments and employment-based immigration pathways.

If restrictions on PERM sponsorship remain in place, employees seeking permanent residency through the affected employers could face delays or uncertainty. The companies may also need to review their US recruitment strategies, workforce planning and compliance procedures.

The extent of the commercial impact will depend on the scope and duration of the suspension, the number of affected applications, the legal basis of the action and whether the companies can challenge or resolve the restrictions. Tougher US Scrutiny of Foreign-Worker Recruitment

The reported action forms part of a wider debate in the United States over immigration, foreign labour and the protection of domestic employment. The administration’s stated concern is that employment-based immigration programmes should not be used in ways that undermine opportunities, wages or working conditions for American workers.

However, the action should not automatically be interpreted as evidence of a broader diplomatic rupture between Washington and New Delhi. Nor does action against particular companies establish wrongdoing across India’s entire IT sector.

*Editorial note:* The precise scope of the suspension, the complete list of affected companies, the legal grounds for the action and the exact wording of statements attributed to US officials should be confirmed through official US Department of Labor documents and statements from the companies concerned. The details above are therefore attributed to media reporting rather than presented as independently verified final findings.