The US Department of Labor has suspended new and pending PERM applications for eight tech companies, including Microsoft, Adobe, Cognizant, Infosys, TCS, Wipro, HCLTech, and Capgemini. This suspension affects employer-sponsored green card applications for Indian professionals working in the US on H-1B visas.

The move may lead Indian IT firms to shift their hiring strategies, relying less on sending employees to the US due to ongoing H-1B restrictions. According to Kamal Karanth of Xpheno, PERM is an important part of employer-employee relationships, and companies that cannot offer it may find it harder to attract and retain experienced professionals.

Hiring more Americans may not be an easy solution for Indian IT firms, as onboarding local talent at scale in the US is challenging and expensive. As a result, Indian IT companies may shift more projects to India and increase offshore and nearshore delivery.

Setting up or expanding Global Capability Centres (GCCs) in India remains a cost-effective option for multinational companies. Indian technology hubs could see more hiring as IT firms strengthen their teams in India.