Economic Times1 hour agoBusiness3 min readIndia

TCS, Infosys, Wipro, others' PERM request decline

Major technology companies report reduced reliance on H-1B visas and PERM process as US suspends eight firms from permanent labor certification program.

Quick Look

Indian IT giants like TCS and HCL report a significant drop in US green card applications following a recent suspension of the PERM program.
Industry leaders state this shift reflects a broader strategy of reducing H-1B dependency and increasing local US hiring.

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Why It Matters

The US Department of Labour suspended eight IT firms from the PERM program, which is the initial step for foreign workers to obtain permanent residency.

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Washington, Indian IT companies facing suspension from the US permanent labour certification programme have made fewer applications for green cards this year, indicating that the action may not have a significant impact on their functioning.

The US on Thursday suspended eight IT firms, including Indian tech giants Tata, Infosys, Wipro and HCL, from a programme to apply for green cards for foreign workers, contending that the practice has shut out Americans from the job market.

The other companies were Capgemini, Cognizant, Microsoft and Adobe, which hire a significant number of professionals from India.

An analysis of Permanent Labour Certification (PERM) applications shows that Tata Consultancy Services (TCS) filed just two applications in the US financial year 2026, down from 513 in 2025 and 1,804 in 2024, while HCL filed 59 PERM filings in 2026, down from 323 in 2025.

Wipro filed 257 applications in 2024 and 523 in 2025. Of the 257 applications filed by Wipro in 2024, 169 were denied, and 88 were withdrawn by the company.

Infosys filed 87 PERM applications in 2024. The application data for 2025 and 2026 were not available.

"Indian IT companies accounted for less than 1,400 of the 117,849 PERM certifications last year. Less than two per cent. The direct impact may therefore be smaller than it first appears," Vineet Nayar, former CEO of HCL Technologies, said in a post on X.

Capgemini made 98 PERM applications in 2026, compared with 361 in 2025 and 300 in 2024, according to the website PERM Tracker.

Cognizant filed 1,236 PERM applications in 2024. Data was not available for 2025 and 2026.

National Association of Software and Service Companies (NASSCOM) and TCS issued statements saying PERM applications by Indian firms were on a decline.

"Our PERM applications were in single digits in the last two years, and hence we do not expect the suspension of the program to impact our workforce strategy and customer engagements," TCS said in a statement.

NASSCOM said over the 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 US.

"Consequently, the number of employees transitioning from H-1B visas to permanent residency through the PERM process is also relatively limited," the NASSCOM statement said.

A permanent labour certification issued by the Department of Labour allows an employer to hire a foreign worker to work permanently in the United States.

A PERM application is considered the first step towards obtaining a green card, or permanent residency, in the US for professionals on work visas.

Open Questions

Will other IT firms face similar suspensions?
How will the local hiring strategy impact long-term operational costs?

TCS, Infosys, Wipro, others' PERM request decline

Major technology companies report reduced reliance on H-1B visas and PERM process as US suspends eight firms from permanent labor certification program.

Quick Look

Indian IT giants like TCS and HCL report a significant drop in US green card applications following a recent suspension of the PERM program.
Industry leaders state this shift reflects a broader strategy of reducing H-1B dependency and increasing local US hiring.