Summary:
The US PERM suspension involving eight technology companies has raised concerns for Indian IT firms and employees. However, limited reported PERM filing volumes, local hiring and offshore delivery models may cushion business impact, while immigration uncertainty remains for affected workers.
How Could the US Green Card Freeze Affect Indian IT Stocks?
The US government’s decision to exclude eight major technology companies from its Permanent Labor Certification (PERM) program has created worries around employment-based green cards and the future of Indian IT professionals working in America. The restrictions will affect some of India’s leading IT companies but their lower dependence on US work visas may help soften the immediate financial impact.
So what happened? Why was PERM suspended in the US?
| Key detail | Information |
| Programme involved | Permanent Labor Certification Program (PERM) |
| Companies named in reports | TCS, Infosys, Wipro, HCLTech, Cognizant, Capgemini, Microsoft and Adobe |
| Reported action | Suspension from the PERM programme |
| Main concern for employees | Delays or uncertainty in the employment-based green card process |
| Immediate business considerations | US local hiring, offshore delivery, workforce planning and compliance |
| Key market question | Whether the restrictions materially affect costs, hiring or client delivery |
| What to monitor | Duration of the suspension, official clarifications and company disclosures |
On October 8, 2026, the US Department of Labor suspended eight technology companies from the PERM program alleging misuse of immigration procedures and concerns over loss of employment opportunities for American workers.
- Affected companies include:
- Tata Consultancy Services
- Infosys
- Wipro
- HCL Technologies
- Cognizant Technology Solutions
- Microsoft
- Adobe
- Capgemini
The suspension bars these companies from filing new PERM applications and from processing any pending applications. But it does not automatically cancel existing H-1B’s, nor does it require affected employees to leave the US.
What is PERM and Why is it Significant?
PERM is a critical requirement for employment-based permanent residence in the US.
In general, before an employer may sponsor a foreign worker for a green card, it must show that no qualified U.S. workers are available to fill the position and that the employment of the foreign worker will not adversely affect the wages and working conditions of local workers.
Once the labor certification is approved, employers can proceed to the immigration petition.
The newest suspension is mainly for workers looking to get permanent residency through their employers. Existing H-1B workers can generally continue working as long as their visas remain valid, but delays in green card processing can create uncertainty about their long-term stay.
Which IT Companies Are Affected by the US Green Card Freeze?
Reports identify eight companies: TCS, Infosys, Wipro, HCLTech, Cognizant, Capgemini, Microsoft and Adobe.
Why Indian IT’s Bottomline Impact May Not Be As Big
Indian IT firms have increased their local hiring and grown their offshore delivery and operations to various countries over the years to reduce their dependence on H-1B visas.
Indian IT firms accounted for fewer than 1,400 of the 1,17,849 PERM applications filed in FY25, according to available US government data, which is less than 2% of total applications.
The relatively modest exposure suggests that any near-term impact on project execution and revenue could be limited.
However, prolonged restrictions could raise recruitment costs, make workforce planning more complicated and make it harder to keep employees in specialist technology jobs.
Indian IT Stocks Rebound As Restrictions Lift
Interestingly, Indian IT stocks recovered sharply on October 9, 2026 despite the immigration-related events.
Stock performance on October 9, 2026
| Company | Share Price Change |
| TCS | +3.85% |
| Infosys | +3.01% |
| HCLTech | +3.38% |
| Wipro | +2.65% |
| Nifty IT Index | +3.02% |
The turnaround followed TCS's release of its Q2FY27 financial results. The company reported revenue of ₹73,188 crore, up 11.2% YoY, and an operating margin of 24%.
Annualized AI revenue hit $3.1 bn, over 10% of total revenue, with quarterly deal wins of $9.6 bn.
What is in store for Indian IT companies?
The longer-term impact will depend on how long restrictions are in place and whether the U.S. authorities impose other immigration requirements.
Higher domestic recruitment in the U.S. may push up operating expenses, though companies may be able to manage costs through offshore delivery and automation.
For Indian IT stocks, revenue growth, deal execution, margins & US tech spending along with developments on immigration will remain key factors.
The suspension of PERM creates uncertainty for employees seeking permanent residency, but immediate financial impact on Indian IT companies appears to be relatively small, going by the volumes of applications they are currently filing.
