U.S. freezes green card filings for TCS, Infosys, Wipro, Cognizant
- The U.S. suspended eight companies from the PERM green card program on Oct. 8.
- They include Infosys, TCS, Wipro, HCL Technologies, Cognizant and Capgemini.
- Microsoft and Adobe were also suspended, citing active federal investigations.
- The suspension does not cancel existing H-1B visas or green cards.
WASHINGTON, D.C., UNITED STATES — The Trump administration has frozen a key green card process for six of the world’s largest IT outsourcing firms, along with Microsoft and Adobe, as it widens a crackdown on how companies hire foreign workers. The eight companies can no longer file new applications under the Permanent Labor Certification (PERM) program, and pending applications involving them have been halted.
Investigations behind the freeze
Labor Secretary Keith Sonderling announced the suspension on Oct. 8 at a press conference led by Vice President JD Vance, citing criminal and federal investigations, India West reported. The outsourcers named were Cognizant, Infosys, Tata Consultancy Services (TCS), Wipro, HCLTech and Capgemini.
“We will not accept or process any pending permanent labor certification applications involving these companies,” Sonderling said. He said the eight firms had collectively sought nearly three million foreign workers since 2009, receiving more than 230,000 H-1B approvals and over 100,000 labor certifications.
The administration did not release company-specific findings or details of the alleged violations. Microsoft and Adobe were included because of multiple active federal investigations, Sonderling said.
No end date
Vance accused employers of using the H-1B program to replace American workers with cheaper foreign staff, and said the freeze would last “as long as it needs to.” He said the administration wants companies to change their hiring practices rather than leave the U.S. market.
The Justice Department also announced investigations into companies suspected of favoring foreign workers, with Attorney General Todd Blanche saying criminal prosecutions and civil lawsuits are possible. PERM is a key step for employers sponsoring foreign workers for permanent residence, but the suspension does not cancel existing H-1B visas or green cards.
For clients of these providers, the immediate effect falls on staff moving toward permanent residence, which can affect retention of senior onsite people. Buyers relying on onsite teams may see providers lean harder on offshore outsourcing and global capability center (GCC) delivery to reduce exposure to U.S. visa rules. Firms reviewing their mix of onsite and offshore delivery can benchmark providers on the top BPO companies worldwide list.
Related news
- TCS, Infosys face soft Q2 as mid-tier IT firms pull ahead · 8 Oct
- Trump renews $100,000 H-1B fee for another year · 22 Sep
- H-1B denials target IT outsourcing wage levels · 9 Sep
Disclosure: Outsource Accelerator uses AI tools in the backend of its editorial workflow. Every article is reviewed and verified by a human editor before publication.
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