Indian IT firms respond to US green card freeze; TCS says hiring plans unchanged

The Indian IT industry has defended its hiring practices after the United States suspended several major technology companies from the green card process, with Nasscom pointing to increased local recruitment and reduced dependence on H-1B visas.

The US Department of Labor on Thursday suspended eight technology companies from the Permanent Labor Certification (PERM) programme, which allows employers to seek labour certification as part of the employment-based green card process. The affected companies include Indian IT services firms Tata Consultancy Services (TCS), Infosys, Wipro, HCLTech, Cognizant and Capgemini, as well as US technology companies Microsoft and Adobe.

In a statement, the National Association of Software and Service Companies (Nasscom) said immigration and skilled talent mobility were distinct issues and should not be viewed through the same lens.

The industry body said Indian technology companies had reduced their dependence on H-1B visas over the years, expanded local recruitment and built a stronger domestic workforce in the US. It added that Indian IT firms operate in more than 80 countries and remain committed to complying with local laws and regulatory requirements.

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

TCS says US green card freeze will not affect hiring plans

TCS said on Friday that the suspension would not have any material impact on its workforce strategy or client engagements.

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The company said its PERM applications had been in the single digits over the past two years. It reiterated its plan to hire 15,000 additional employees in the US over the next five years.

TCS said its US workforce strategy primarily focuses on local recruitment, supported by campus hiring, reducing its reliance on the programme.

The company’s response suggests that the immediate operational impact may be limited for TCS. However, employees whose permanent residency applications are affected could face delays.

Why has the US suspended PERM applications?

US Vice President JD Vance and Labor Secretary Keith Sonderling announced the action on Thursday, citing active federal investigations into the companies and alleged misuse of foreign-worker programmes.

The Trump administration has argued that such programmes should not be used to displace American workers. Vance accused Microsoft of replacing US employees with foreign workers, while Sonderling said the suspensions were linked to investigations into alleged abuses.

PERM is a labour certification step in the employment-based green card process. Employers generally need to demonstrate that qualified and available US workers are not available for a position and that hiring a foreign worker would not adversely affect the wages and working conditions of similarly employed American workers.

The H-1B programme, in contrast, allows employers to hire eligible foreign professionals for specialised occupations on a temporary basis.

The suspension does not automatically cancel existing H-1B visas, but it can disrupt the path to permanent residency for affected employees whose applications cannot be filed or processed.