US PERM suspension set to repatriate tech roles to India, fuel GCC hiring

The US Department of Labor’s surprise decision on 8 October to freeze PERM labour-certification processing for eight technology giants—including Microsoft, Adobe, Cognizant, Infosys, TCS, Wipro, HCLTech and Capgemini—has sent shock-waves through India’s global-mobility ecosystem. PERM is the first step in securing a US employment-based green card; without it, foreign workers cannot transition from temporary H-1B status to permanent residency. According to the Times of India, the eight firms together filed only 61 PERM applications in FY-26, but the freeze nevertheless affects thousands of Indian employees whose green-card cases are already in the pipeline. Industry analysts interviewed by Immigration Analytics argue that, while the immediate commercial impact on the outsourcing majors is marginal, the symbolic impact is enormous. It signals that the Trump administration is prepared to weaponise immigration rules against large employers and could foreshadow wider restrictions on extensions or new H-1B petitions. Indian technology associations say the move will accelerate a trend that was already under way: US companies expanding or relocating high-end engineering roles to Global Capability Centres (GCCs) in Bengaluru, Hyderabad, Pune and Gurgaon. HYSEA (Hyderabad Software Enterprises Association) projects that India could add 300,000 GCC jobs in artificial-intelligence and product-engineering roles by 2027—jobs that might otherwise have sat in the United States. TeamLease Digital estimates that India already hosts 2,100 GCCs employing 2.4 million professionals; the PERM freeze could speed the next wave of growth by 12-18 months. For individual assignees, however, the news is destabilising. PERM cases that are already filed will languish for up to 180 days (and possibly longer) unless the Labour Department issues written guidance to the contrary. Workers with expiring H-1B status may have to choose between restarting the green-card process with a new employer, transferring back to India, or seeking assignments in Canada or Europe. Immigration lawyers say no class-action suits have yet been filed, but multiple employees are exploring Administrative Procedure Act challenges. Practical takeaway for mobility managers: review all PERM-dependent US assignments immediately. Where business continuity is critical, consider intra-group transfers to India-based GCCs or short-term Canada work-permit options. Evaluate whether crucial staff can remain billable on the H-1B “cap-exempt” route with a university partner, and prepare talking points for employees whose permanent-residence timelines have shifted out by at least a year.