The U.S. Department of Labor, on March 28, 2026, halted green‑card sponsorship processing for eight major tech firms, including Microsoft, Adobe and six Indian IT companies (TCS, Infosys, Wipro, HCLTech, Cognizant, Capgemini). The move follows criticism from U.S. officials that H‑1B visas are being used to replace American workers.
U.S. Vice President Keir Vance accused firms of misusing the system, labeling it “foreign indentured servants.” NASSCOM chair Srikanth Velamakanni said the allegations are unsubstantiated and that the companies are compliant with laws.
Velamakanni argues the pause will not dent Indian IT revenue in the short to medium term, citing a shift away from H‑1B dependence. He warned that restrictions on worker mobility could compel firms to relocate jobs to countries that already host the needed talent.
“When labour cannot move, work moves where the labour is,” he said. The pause could push displaced Indian talent to start businesses at home, potentially boosting domestic employment. He added that advances in AI make it easier and cheaper to launch new ventures, giving a silver lining to the setback.
NASSCOM plans to continue dialogue with the U.S. administration, seeking a framework that balances U.S. labour concerns with India’s talent reservoir. The industry will monitor the situation closely, as any further restrictions could reshape global outsourcing patterns.