US suspends PERM green‑card program for major IT outsourcing firms
On October 9, 2026 the U.S. Department of Labor temporarily barred eight large IT outsourcing companies, including Microsoft, Tata, Infosys and Wipro, from filing new Permanent Labour Certification Programme (PERM) applications. Karnataka’s IT minister Priyank Kharge warned the move could raise operating costs for Indian IT firms in the United States, make employee retention harder and limit onsite deployment flexibility. He also said the restriction might spur faster growth of Global Capability Centres in India, boosting demand for senior tech talent and expanding the country’s role in product development and AI.
Why it matters
The suspension may increase expenses for Indian IT exporters with U.S. operations, potentially affecting their profit margins and cash flows. It could also shift higher‑value work to India, benefiting domestic service providers and GCC developers. Investors should watch for cost‑impact disclosures from affected firms and any earnings revisions.
Key facts
- 1The U.S. Department of Labor announced a temporary suspension of eight IT firms, including Microsoft, Tata, Infosys and Wipro, from filing new PERM applications. deccanchronicle.com
- 2Karnataka IT Minister Priyank Kharge said the suspension could increase operating costs for Indian IT companies in the United States. tradingview.com
- 3Kharge warned the move could make retaining skilled employees more difficult and reduce flexibility in deploying Indian professionals onsite. deccanchronicle.com
- 4He added that the restriction might accelerate the expansion of Global Capability Centres in India, raising demand for senior technology professionals. tradingview.com
- 5The announcement was made on October 9, 2026. tradingview.com
Summary written by AlphAI AI Desk from 2 of 2 sources. Not investment advice. Figures are as stated by the linked sources.