US Suspends Infosys, TCS, Wipro, Microsoft, Adobe and Other IT giants from green card programme
The US suspended Infosys, Tata (TCS), Wipro, Microsoft, Adobe, and others from the PERM program, which allows green card applications for foreign workers. The suspension affects new and pending applications. The companies have requested nearly 3M foreign workers since 2009, with over 230K H-1B visas and 100K labor certifications approved.
How this was made
The 30-second read
Why it matters
The regulatory move directly limits the ability of these firms to sponsor permanent work visas, raising hiring costs and potentially slowing growth in U.S. operations.
Market read
The announcement creates immediate negative pressure on affected stocks and raises sector‑wide concerns about U.S. immigration policy for tech talent.
What to watch
The announcement does not affect existing green‑card holders; firms may accelerate hiring of U.S. citizens or use H‑1B extensions, mitigating impact.
Background
The U.S. Department of Labor announced a suspension of several large IT outsourcing firms from the PERM green‑card programme, a key pathway for foreign workers to obtain permanent residency.
Ticker impact
Cognizant was suspended from the PERM green‑card programme, limiting its ability to sponsor foreign workers.
likely pressure as the market prices in the hiring limitation
Regulatory suspension directly affects talent acquisition, a material cost driver for Cognizant.
Infosys was named among firms barred from the PERM green‑card programme.
likely pressure as investors assess hiring constraints
The suspension creates a head‑count risk for Infosys’s offshore delivery model.
Wipro was included in the PERM suspension list.
likely pressure as investors price in higher hiring costs
Hiring restrictions are material for Wipro’s U.S. delivery operations.
Microsoft was suspended from the PERM green‑card programme.
likely pressure as investors factor in higher labor expenses
Even a large U.S. firm faces limits on permanent visa sponsorship, a material operational risk.
Adobe was suspended from the PERM green‑card programme.
likely pressure as the market prices in possible staffing challenges
Regulatory action directly affects Adobe’s ability to secure permanent work visas.
Market effects
IT services and consulting sector faces heightened regulatory risk, potentially widening spreads between U.S. and offshore‑focused peers.
U.S. markets may see broader sell‑offs in tech‑heavy indices as investors reassess exposure to firms reliant on foreign talent.
The action signals stricter U.S. immigration enforcement, which could affect global outsourcing dynamics.
Counterpoint
Some investors may view the suspension as a short‑term over‑reaction, betting that firms can pivot to alternative visa programs without lasting damage.
Key entities
- RegulatorU.S. Department of Labor
Issued the suspension of PERM certifications for listed IT firms.
- OfficialKeith Sonderling
U.S. Labor Secretary who announced the suspension.
- OfficialJ.D. Vance
Vice President and head of the U.S. Anti‑Fraud Task Force, co‑announced the action.
