India’s tech giants shrug off changes to USA’s skilled visa program

If you are an Indian IT professional seeking to transition from an H-1B visa to permanent residency in the US, that pathway is now significantly more difficult.

The US government has modified its skilled visa program, specifically impacting the Program Electronic Review Management (PERM) process. Vice President JD Vance and Labor Secretary Keith Sonderling announced that Microsoft and Adobe can no longer use PERM to convert H-1B visa holders to permanent residents. Access to PERM was also revoked for Indian IT firms Infosys, Tata, Wipro, and HCL, along with Capgemini. The administration cited criminal investigations and alleged "fraud and abuse" as the reasons for these changes, with Secretary Sonderling stating these companies had requested nearly three million foreign workers since 2009, leading to hundreds of thousands of jobs potentially taken from American workers. Microsoft has denied these allegations, asserting they adhere to rigorous standards for H-1B petitions and offer high compensation comparable to other employees. NASSCOM, India's tech industry body, also commented that immigration and skilled talent mobility are distinct issues and that Indian companies have reduced H-1B dependence while expanding local hiring in the US.

This move by the US administration signals a more protectionist stance on skilled immigration, directly targeting major Indian IT outsourcing firms and even large US tech companies like Microsoft. The administration's emphasis on "hiring great American workers" and its sharp rhetoric suggest a potential shift in how US immigration policy interacts with the global tech talent pool, potentially impacting the cost and availability of skilled labor for multinational corporations. The denials of "fraud and abuse" by Microsoft and NASSCOM indicate a broader debate over the H-1B program's intent and execution, which may lead to increased scrutiny and stricter enforcement across the board.

The impact of these changes could ripple through the global IT services market, potentially forcing companies to re-evaluate their talent acquisition and retention strategies. Indian tech giants, heavily reliant on such visa programs, may need to accelerate their investments in local hiring within the US or explore alternative talent markets. The broader consequence could be an increase in operational costs for companies that depend on visa programs to fill specialized roles, potentially affecting project timelines and the competitiveness of outsourcing services.