The Department of Labor on Thursday halted the PERM applications for eight Indian IT firms, including Tata, Infosys, Wipro, HCL, Capgemini, Cognizant, Microsoft and Adobe, citing a perceived crowding out of American workers.
Tata Consultancy Services filed only two PERM applications in FY 2026, a steep drop from 513 the previous year and from 1,804 in 2024. HCL filed 59 in 2026 versus 323 in 2025, while Wipro’s filings fell from 523 in 2025 to 257 in 2024, with 169 denied and 88 withdrawn. Capgemini and Cognizant also reported lower submissions, 98 and 1,236 respectively, compared to previous years.
TCS spokesman said, "Our PERM applications were in single digits last two years, so we do not expect the suspension to impact our workforce strategy or customer engagements." Former HCL CEO Vineet Nayar echoed the sentiment on X, noting that Indian firms account for less than 1,400 of the 117,849 PERM certifications last year, a fraction that limits the direct effect of the pause.
The PERM process is the first step toward granting U.S. green cards to foreign workers on work visas, allowing employers to secure permanent employment. By restricting PERM filings, the Department aims to open opportunities for American candidates, but the scale of Indian firms’ applications has been comparatively modest.
Facing the suspension, the companies plan to double down on local hiring initiatives and maintain existing client contracts, while awaiting the Department’s assessment of the policy’s impact on workforce dynamics.