The Trump administration has suspended several major technology and IT outsourcing companies, including Cognizant, Infosys, Tata, Wipro, HCL, Capgemini, Microsoft and Adobe, from the US government’s Permanent Labour Certification Programme (PERM). PERM is a crucial stage in the process through which foreign workers, including H-1B visa holders, can obtain employment-based green cards. US Labour Secretary Keith Sonderling announced the move while accusing companies of misusing employment-visa programmes and taking jobs from American workers.
“I am hereby suspending from the Permanent Labour Certification Programme some of the largest IT outsourcing firms in the world, Cognizant, Infosys, Tata, Wipro, HCL, and Capgemini,” Sonderling said.
“We will not accept any new or process any pending permanent labour certification applications involving these companies,” Sonderling added.
The move follows a broader action by the Trump administration on programmes that allow companies to employ foreign workers.
Vice President JD Vance, while addressing the press, accused Microsoft of using the system to replace American workers with foreign employees. News agency Associated Press reported that Vance stressed Microsoft’s layoffs and its use of H-1B visas as evidence of what he described as abuse of the system.
“If you do the math, for every worker that Microsoft laid off, they replaced that worker with one and a half foreign indentured servants,” Vance said.
“Now our message to Microsoft and to any other foreign or domestic corporation is quite simple. We obviously want you to thrive in the United States of America. We want people to invest in the United States of America, particularly the American technology sector. We’re the biggest boosters of your industry. We want you to continue to grow and to employ a lot of people, but we want you to employ American workers. And so our message to Microsoft is, you are great American company, but you’ve got to hire great American workers. You cannot lay off American workers and then replace them with foreign indentured servants,” Vance wrote as he posted a video on X.
Statement from NASSCOM -
“The U.S. Department of Labor has today announced the temporary suspension of certain IT companies, including Indian technology companies operating in the U.S., from filing new applications under the Permanent Labor Certification (PERM) programme. While the decision affects a specific immigration pathway, Nasscom has consistently maintained that immigration and skilled talent mobility are two distinct issues and should not be viewed through the same lens.
The H-1B visa programme has historically played an important role in addressing short-term skill gaps in the U.S. and it will continue to be used to address short term talent gap. However, over the past few years, Indian technology companies have significantly reduced their dependence on H-1B visas, while steadily expanding local hiring and building a strong domestic workforce in the U.S. They work with majority of the US fortune 500 companies, enable them to innovate and grow, and generate more local jobs.
Consequently, the number of employees transitioning from H-1B visas to permanent residency through the PERM process is also 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 U.S. as well.
