India's four largest information technology companies dramatically reduced the number of green card applications they filed for employees in the United States starting in fiscal year 2024, well before American authorities suspended their participation in the program, according to an analysis by the Hindustan Times. The timing raises questions about whether the companies anticipated tightening scrutiny of their US immigration practices.

The applications in question, known as PERM labour certifications, are the first step employers must take before sponsoring a foreign worker for permanent US residency, commonly called a green card. The process requires companies to demonstrate that no qualified American worker is available for a role before petitioning on behalf of a foreign employee. For years, Indian IT firms used PERM filings as a bridge to move skilled employees from temporary H-1B visas to permanent status in the United States.

A Pullback Before the Suspension

The Hindustan Times data review found that the four firms recently suspended from the PERM program had already begun curbing their applications in FY2024, a full cycle before US authorities took formal action. That timing is significant; it suggests the reduction may have been a deliberate, preemptive shift in strategy rather than merely a reaction to enforcement.

Such a move could reflect several overlapping realities facing Indian IT companies today. One is the political climate in Washington. Immigration policy, particularly around work visas and employment-based green cards, has faced repeated tightening under scrutiny from US lawmakers concerned about the displacement of American workers. Indian IT firms, which have long been among the largest users of the H-1B visa program, have historically drawn outsized attention in these debates.

Business Models in Transition

Beyond politics, the pullback may also reflect deeper changes in how Indian IT companies operate in the United States. Over the past decade, firms such as Tata Consultancy Services, Infosys, Wipro, and HCLTech have steadily localized their US workforces, hiring more American citizens and permanent residents directly rather than relocating employees from India on temporary visas. This shift reduces the companies' dependence on the H-1B-to-green-card pipeline that once defined their US staffing strategy.

The rise of automation and artificial intelligence within the IT services industry has also changed staffing needs. As routine coding and maintenance work becomes increasingly automated, the demand for large pools of visa-dependent engineers sent from India has diminished, potentially reducing the need for extensive green card sponsorship altogether.

What It Means for Indian Tech Workers

For Indian professionals in the US tech sector, the implications are significant. The H-1B visa, followed by PERM sponsorship and eventual green card status, has long been the primary pathway for Indian engineers to build long-term careers in the United States. A pullback by the largest Indian employers filing these applications could signal a narrowing of that pathway, even as individual workers continue to seek opportunities with American technology companies directly.

The reduction in PERM filings before any formal suspension suggests Indian IT firms were already recalibrating their US workforce strategy, rather than simply responding to a sudden regulatory shock.

The suspension itself, which the Hindustan Times reports followed the preemptive decline in filings, adds another layer of uncertainty for the companies and their employees. Suspension from the PERM program effectively halts a firm's ability to sponsor workers for permanent residency, at least temporarily, pushing affected employees further into uncertainty about their long-term status in the country.

A Pattern With Precedent

This is not the first time Indian firms have faced friction over American visa and labor policy. The broader context includes decades of US trade and economic policy that has periodically drawn criticism for prioritizing American interests, from steel tariffs to telecommunications market access disputes in the early 2000s. Immigration and outsourcing policy have followed a similar pattern, with US administrations periodically tightening H-1B rules and increasing application fees in response to domestic political pressure over job protection.

What distinguishes the current episode is the apparent foresight shown by India's top IT firms. Rather than waiting for a clear regulatory signal, the data suggests they moved early, scaling back their own green card sponsorship before Washington took formal action. Whether that reflects a defensive legal strategy, a genuine shift toward hiring local talent, or simply reduced need for sponsorship as automation reshapes the industry remains unclear. What is evident is that the traditional route Indian technologists once relied upon to build permanent careers in the United States is undergoing significant transformation.