US suspends green-card filings for six major IT outsourcers, with no end date
On 8 October the Labor Department suspended Microsoft, Adobe, Cognizant, Infosys, TCS, Wipro, HCLTech and Capgemini from the PERM green-card labor certification program. It will accept no new applications from them and will not process pending ones. The stated reason is alleged abuse, with multiple federal investigations under way. Vance said the suspension is indefinite. (Channel Dive, explainer.) The direct revenue hit looks small. ICICI Securities says Indian IT firms filed under 2% of PERM applications between October 2024 and September 2025. TCS said it expects no effect on workforce strategy or client engagements, citing single-digit PERM filings over two years. (Reuters via ARY News.)
The exposure is retention, not offshore delivery. Many H-1B workers need a PERM case on file to stay past the six-year limit, and a long freeze could push people to leave or switch employers. It is also unclear whether workers on US government projects are affected. If a vendor staffs your account with US-based visa holders, those are the people most likely to walk. My view is that this is no reason to switch vendors, but it is a reason to find out which onshore roles on your account depend on a green-card path. This quarter, ask each vendor to name those roles. Move the ones that don't need to be onshore to the offshore team. For the rest, write a backfill time commitment and a handover period into the contract.
A question for your shortlist: How many people on my account are US-based visa holders who need a PERM filing to stay, and how fast will you backfill each of them if they leave?
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