U.S. Government Suspends PERM Visa Program for Major Indian IT Firms

U.S. Department of Labor has halted the PERM labor certification process for a group of Indian IT service providers, including Infosys, Tata Consultancy Services, Wipro, HCL Technologies, Cognizant and Tech Mahindra, citing concerns over alleged abuse of the H‑1B visa system.

Microsoft is quoted in the announcement, stating that the agency’s findings show widespread violations that threaten the integrity of the U.S. employment‑based green‑card pathway, prompting the suspension until corrective measures are verified.

Industry analysts warn that the pause could delay hiring for U.S. tech firms, increase costs for Indian workers seeking permanent residency, and pressure the affected companies to tighten compliance, potentially reshaping the offshore staffing landscape.

The suspension covers eight firms in total, adding Wipro, Infosys, TCS, HCL, Cognizant, Tech Mahindra, and two others, and blocks new PERM applications until the Department of Labor completes its audit, signaling a broader crackdown on visa fraud across the outsourcing sector.