GREEN-CARD DREAM UNDER SIEGE: US VISA CRACKDOWN SHAKES INDIA’S TECHNOLOGY WORKFORCE
October 9, 2026
The American dream of long-term settlement in the United States has become increasingly uncertain for Indian technology professionals after the Donald Trump administration suspended major technology companies from sponsoring foreign workers through a key permanent-residency certification programme.
The companies affected include Indian IT giants Tata Consultancy Services (TCS), Infosys, HCL and Wipro, alongside Cognizant, Microsoft, Adobe and Capgemini. The US government has said it will neither accept new applications nor process pending applications under the Permanent Labour Certification Programme (PERM) involving the suspended companies.
The decision threatens an important route through which Indian professionals working in the United States on H-1B visas seek permanent residency, commonly associated with obtaining a green card. The H-1B programme allows American employers to recruit foreign professionals for specialised occupations, particularly in the technology sector, while PERM generally requires employers to demonstrate that qualified, willing and available American workers cannot fill the positions concerned.
US Vice-President JD Vance defended the action by accusing major technology companies of exploiting the foreign-worker system at the expense of American employees. Labour Secretary Keith Sonderling also alleged widespread abuse of employment-based immigration arrangements and said the government was moving to prioritise domestic workers.
Vance specifically criticised Microsoft, pointing to company layoffs alongside its use of H-1B visas and green-card sponsorships. Microsoft rejected the allegations, maintaining that its foreign employees receive competitive compensation and are paid comparably to other employees performing similar work.
The suspension could disrupt the career plans of Indian professionals already employed in the United States who were counting on employer-sponsored permanent residency. It may also complicate recruitment and retention strategies for Indian outsourcing companies that have traditionally transferred employees from India to American client projects before helping some of them settle permanently.
Industry consultant Pareekh Jain warned that the prospect of eventually working and settling in the United States had long helped Indian technology-service companies attract employees despite comparatively lower salaries in India. With that pathway now facing uncertainty, professionals and employers may increasingly consider destinations in Europe and other markets, although these alternatives may not offer opportunities on the same scale as the US.
The restrictions also come as Indian technology companies are adjusting their American operations by recruiting more locally and relying increasingly on subcontractors. TCS, for instance, has indicated that it is expanding recruitment in the United States, while its reported subcontracting expenses have risen sharply.
The administration has simultaneously announced investigations into nine universities, including Harvard, Yale, Stanford and the Massachusetts Institute of Technology, over their use of J-1 student visas. Officials have portrayed the investigations and corporate suspensions as part of a wider campaign against alleged abuses of immigration programmes.
For Indian IT workers, the immediate concern is the uncertainty surrounding permanent-residency applications and long-term career plans. While the H-1B route for temporary skilled employment is distinct from the PERM process for employment-based permanent residency, the suspension strikes at a crucial stage of the journey many professionals hoped would ultimately allow them to build permanent lives in America.
