Infosys has said it does not expect a material impact on its business from the US government’s suspension of new and pending Permanent Labor Certification (PERM) applications involving the company and seven other major technology firms. The Indian IT services provider said it is prepared to work with the US Department of Labor and other government agencies to address their questions, while highlighting its investment in a local workforce and technology and innovation hubs in the United States.
The suspension, announced on October 8, 2026, affects an important route through which employers sponsor eligible foreign workers for US permanent residency. Although Infosys expects limited operational consequences, employees whose green-card applications depend on PERM certification could face delays and uncertainty. The measure is not a blanket cancellation of H-1B visas or all existing green-card approvals, and its consequences will depend on each worker’s immigration status and application stage.
Key takeaways
- Infosys expects limited business impact: The company said it does not anticipate a material effect from the suspension.
- Eight technology companies are affected: The list includes Infosys, TCS, Wipro, HCL Technologies, Cognizant, Microsoft, Adobe and Capgemini.
- New and pending PERM applications are affected: The US Department of Labor said it would not accept new applications or process pending applications involving the named companies while the suspension remains in effect.
- Employees could face delays: Workers relying on employer-sponsored PERM certification may have to wait longer before progressing through the relevant employment-based green-card process.
- H-1B visas are a separate process: The announcement does not itself cancel existing H-1B visas or impose a blanket ban on every H-1B filing by the affected companies.
- The immediate business impact may be limited: Indian IT companies have expanded local hiring and reduced their reliance on some employer-sponsored immigration pathways, although longer-term talent-retention concerns remain.
What did Infosys say about the US PERM suspension?
Infosys, India’s second-largest IT services company, said on October 10 that it did not anticipate a material impact from the US government’s decision. In its exchange filing, the company said it welcomed the opportunity to work with the Department of Labor and related agencies to answer questions they might have.
Infosys also highlighted its investment in a strong local workforce and technology and innovation hubs in the United States. The company said it remained committed to its employees, customers and communities in the country, as well as to complying with applicable laws and regulations.
The statement indicates that Infosys does not expect the suspension to materially disrupt its overall operations or customer engagements. However, it should not be interpreted as confirmation that the government has lifted the restriction or that all affected employees will be able to continue their green-card applications without interruption.
The company has not publicly quantified the number of employees whose applications could be affected by the suspension in the statement covered by the reporting.
Why Infosys expects limited operational disruption
Indian IT services companies have gradually changed how they staff projects in the United States. Many have increased local hiring, expanded US delivery operations and used offshore delivery centres to serve clients.
These strategies can reduce the need to relocate every employee from India to the United States. They can also reduce dependence on employment-based immigration processes for routine staffing needs.
For Infosys, its local workforce and technology hubs form part of this operating model. If the company can continue serving customers through employees already authorised to work in the US, local hires and offshore teams, a disruption to one green-card sponsorship pathway may have a limited immediate effect on project delivery.
That does not eliminate every risk. Some employees may prefer employers offering more predictable long-term immigration pathways, and uncertainty around permanent residency could affect recruitment or retention. The suspension could also complicate future staffing decisions for positions that depend on workers progressing through employer-sponsored immigration processes.
Which companies are affected by the US PERM suspension?
The US government announced the suspension for eight major technology and IT services companies.
| Company | Sector |
|---|---|
| Infosys | IT services and consulting |
| Tata Consultancy Services (TCS) | IT services and consulting |
| Wipro | IT services and consulting |
| HCL Technologies | IT services and consulting |
| Cognizant | IT services and consulting |
| Microsoft | Software and cloud computing |
| Adobe | Software and digital media |
| Capgemini | IT services and consulting |
US officials said the action was part of a wider effort to investigate alleged misuse of immigration and labour-certification processes. They argued that some employers had used foreign-worker programmes in ways that disadvantaged American workers.
These are government allegations and policy justifications; the announcement does not establish that every named company or every employee sponsored by those companies violated immigration law.
The Department of Labor said it would not accept new or process pending PERM applications involving the affected companies. The practical impact therefore centres on applications that depend on the PERM process, rather than on every aspect of the companies’ US operations.
The decision also differs from a general suspension of all employers’ access to the green-card system. It identifies specific companies and a particular employment-based labour-certification process.
What is PERM, and why does it matter?
PERM stands for Permanent Labor Certification. It is a US Department of Labor process generally used when an employer sponsors a foreign worker for certain employment-based green-card categories.
The process is intended to establish that there are not sufficient qualified and available US workers for the relevant position and that employing the foreign worker will not adversely affect the wages and working conditions of similarly employed US workers.
In a typical employer-sponsored case, PERM certification is an important step before the employer can file an immigrant petition with US Citizenship and Immigration Services. Further steps may follow, depending on the employee’s eligibility, visa category and circumstances.
The distinction between labour certification and permanent residency is important. PERM is not itself a green card, and receiving a PERM certification does not automatically grant permanent resident status.
How the employment-based process generally works
- Employer sponsorship: An eligible employer decides to sponsor a foreign worker for a qualifying permanent position.
- Labour-market process: Where required, the employer undertakes recruitment and other steps to establish that the labour-certification requirements have been met.
- PERM application: The employer submits the labour-certification application to the Department of Labor.
- Immigrant petition: After certification, the employer can generally proceed with the relevant immigrant petition, subject to the applicable requirements.
- Permanent-residency application: The worker may then move through the remaining green-card process when eligible.
The suspension creates uncertainty at the labour-certification stage for affected employers. If a worker’s case depends on a new or pending PERM application, the interruption may delay the next steps in the employment-based process.
The exact consequences differ between workers. An employee whose PERM application is pending is in a different position from someone whose labour certification has already been approved or whose immigration case has progressed further.
Does the suspension affect H-1B visas?
The PERM suspension should not be confused with a blanket H-1B visa ban.
The H-1B programme allows eligible US employers to employ foreign professionals in qualifying specialty occupations. PERM, by contrast, is a labour-certification process used in many employer-sponsored employment-based green-card cases.
A worker may hold a valid H-1B visa or status while pursuing permanent residency through a separate process. The suspension of PERM applications does not, by itself, automatically invalidate every existing H-1B visa held by an employee of one of the named companies.
Similarly, the announcement does not state that every previously certified PERM application or every previously approved immigrant petition is automatically revoked. The status of existing cases should be distinguished from the suspension of new and pending labour-certification applications.
However, employees should not assume that every immigration matter will proceed normally. Applications can be subject to separate rules and individual review, and the implications of the suspension depend on the stage of the case.
Workers whose immigration plans rely on an affected employer’s pending PERM application may face the most immediate uncertainty. Those with approved labour certifications, approved immigrant petitions or pending adjustment-of-status applications should establish the precise status of their cases before making employment or immigration decisions.
Employees facing uncertainty should consult a qualified US immigration attorney or their employer’s immigration team rather than make major career decisions based solely on headlines.
Why the impact on Indian IT companies could remain limited
The suspension creates a policy risk for Indian technology companies, but analysts have argued that the immediate operational impact may be limited because these companies have reduced their dependence on employer-sponsored green-card applications.
According to reporting by Business Standard and The Economic Times, data from Perm Tracker showed relatively few certified PERM cases for several Indian IT firms in the first part of fiscal 2026.
| Company | Certified PERM cases reported for October 2025–June 2026 |
|---|---|
| HCL America | 59 |
| Tata Consultancy Services | 2 |
| Infosys | 0 |
| Wipro | 0 |
| Total for the four Indian IT firms | 61 |
These figures refer to certified cases during the specified period, not the total number of employees at the companies, all applications ever filed or every employee potentially affected by the suspension. A low number of recent certifications does not establish that no employees have pending cases.
The figures nevertheless help explain why the suspension may not create a major immediate staffing shock for these companies. Their US businesses employ workers through a combination of local recruitment, international transfers where permitted, offshore delivery and other staffing arrangements.
TCS, for example, has separately said it intends to hire an additional 15,000 people in the United States over five years. The company also stated that its PERM applications had been in single digits over the preceding two years and that it did not expect the suspension to affect its workforce strategy or customer engagements.
Infosys’ statement follows a similar broad message: it expects limited business impact while remaining prepared to engage with US authorities.
These disclosures do not mean the policy is inconsequential. They suggest that the immediate consequences for project delivery may be smaller than the effect on individual employees seeking permanent residency.
What does the suspension mean for Indian technology workers?
For Indian professionals working in the United States, the biggest concern is the potential interruption of an employer-sponsored route to permanent residency.
A green card can provide greater long-term stability than temporary work authorisation. It can influence a worker’s ability to plan a career, change jobs and settle in the country. Delays can also affect family plans and decisions about whether to remain in the United States.
Employees with new or pending PERM applications involving a suspended employer may face uncertainty over when their cases can move forward. If the suspension remains in place, affected workers may need to reassess their immigration timelines with professional guidance.
The implications are not identical for everyone. Some employees may have valid H-1B status, while others may have progressed to a later stage of the green-card process. Their options depend on the specific approvals they hold, the applicable rules and the details of their cases.
It is also important not to equate a PERM suspension with a finding that a particular employee is working illegally. The policy concerns the employer’s participation in a labour-certification programme; it does not automatically make every worker employed by a named company ineligible to work.
For affected employees, the practical priority is to determine whether their case depends on a new or pending PERM application, identify any relevant deadlines and obtain case-specific legal advice.
What happens next for Infosys and the IT sector?
The next developments will depend on the Department of Labor’s handling of the suspensions and any subsequent clarification or change in policy. Infosys has indicated that it is willing to cooperate with the relevant US agencies, but it has not said that the suspension has been lifted.
For the wider IT industry, the policy adds another layer of uncertainty around cross-border talent mobility. Indian IT firms depend heavily on the US market for revenue, and they must balance client delivery needs with local hiring requirements, immigration rules and the cost of maintaining skilled workforces.
Companies may continue to expand US hiring, use offshore delivery models and reassess how they retain experienced employees. These responses can help manage operational risk, but they do not replace the long-term residency pathway that some foreign professionals seek through employer sponsorship.
Investors will likely distinguish between the direct effect on revenue and project execution and the broader implications for employee retention, recruitment costs and business sentiment. The immediate earnings impact may be limited, while prolonged uncertainty could still influence workforce planning.
The Bigger Picture
Infosys’ response highlights the difference between a company’s operating resilience and the immigration uncertainty facing individual employees. A business with a substantial local workforce and offshore delivery capabilities may be able to maintain client service even when one employer-sponsored immigration pathway is interrupted. That does not mean the suspension is harmless for workers whose long-term residency plans depend on PERM.
The development also reflects a wider shift in US immigration and labour policy. Technology companies are being asked to demonstrate that their hiring practices comply with rules intended to protect American workers. For Indian IT providers, the challenge is to adapt their staffing models while preserving access to skilled talent and maintaining the confidence of employees and clients.
Looking Ahead
The most important signals to watch are any clarification from the US Department of Labor, changes in the scope or duration of the suspension, and further disclosures from Infosys and other affected companies. Those developments will help determine whether the measure remains a limited labour-certification disruption or creates more substantial challenges for recruitment and employee retention.
For now, Infosys expects no material impact on its organisation, but the suspension remains consequential for workers whose applications depend on the PERM process. The distinction between business continuity and individual immigration outcomes will remain central as the companies and US authorities respond to the decision.
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