The US government’s decision to suspend eight major technology companies from an employment-based Green Card programme has brought a growing business challenge into focus: how can companies access global talent while meeting changing local hiring requirements?
Announced on October 8, 2026, the move affects Microsoft, Adobe, Cognizant, Infosys, Tata Consultancy Services (TCS), Wipro, HCL, and Capgemini. The US Department of Labour has stopped accepting new and processing pending applications under the Permanent Labour Certification Programme, known as PERM, for these companies. Officials have alleged misuse of employment-based immigration programmes and raised concerns about American jobs. (Source: The Indian Express)
The decision is significant beyond the companies directly affected. For businesses that depend on international skills, this highlights how immigration policy, workforce planning, and hiring decisions are becoming increasingly connected.
Understanding the Decision
To understand the impact, it is important to distinguish between an H-1B visa and a Green Card. An H-1B visa allows eligible foreign professionals to work in specialised jobs in the US for an employer. A Green Card, meanwhile, provides permanent resident status. PERM is an important step in many employer-sponsored Green Card applications, requiring employers to demonstrate that qualified, available US workers are not being overlooked for the relevant position.
The latest suspension targets the PERM process for the named companies. It does not automatically cancel their employees’ existing H-1B visas or Green Cards. However, foreign professionals whose permanent residency applications depend on this route could face delays or uncertainty.
US officials have argued that some companies have used foreign-worker programmes while reducing their American workforce. Microsoft has defended its hiring practices, stating that most of its recent H-1B applications concerned existing employees rather than new hires. The allegations and the companies’ responses are important distinctions in a debate that remains subject to scrutiny.
Why This Matters Beyond the IT Sector
Technology companies have long relied on international talent to fill specialised roles. For global businesses, hiring across borders can provide access to skills that may be difficult to find locally, support projects across markets, and help teams respond to changing business needs.
However, the latest US action shows that access to international talent cannot be treated as a purely operational decision. Companies must also consider the immigration rules that govern where employees can work and how long they can remain there.
The implications extend beyond Indian IT firms. Multinational companies with teams, clients, or delivery operations in the US may need to review how their workforce plans depend on employer-sponsored immigration. Even businesses not directly affected by this suspension could face greater pressure to demonstrate that their hiring practices comply with local employment and immigration requirements.
For leaders, the lesson is straightforward: workforce planning must account for changes in government policy, not just changes in business demand.
Local Hiring Is Becoming More Important
One possible response is to build stronger local teams in the markets where companies operate. Indian technology firms have already been increasing local hiring in the US and reducing some of their dependence on H-1B visas. Industry representatives have also argued that these companies contribute to the American economy by helping businesses grow, supporting innovation, and creating local employment.
Hiring locally can help companies reduce their dependence on cross-border employee movement and build closer relationships with customers. It can also make it easier to respond to local business needs.
However, this approach comes with its own challenges. Recruiting locally may be expensive, and companies may still struggle to find people with the required technical skills. Businesses must therefore balance local recruitment with access to international expertise, rather than assume that one approach can replace the other entirely. A more resilient workforce strategy considers both options and adapts to the rules and needs of each market. (Source: The Indian Express)
What Businesses Should Do Next
The latest decision offers three practical lessons for business leaders.
First, companies should review their dependence on specific immigration routes. Understanding how many roles, projects, and employees rely on employer-sponsored visas can help identify areas where policy changes could disrupt operations.
Second, businesses should strengthen their compliance processes. Clear records, consistent hiring practices, and regular reviews of immigration requirements can help employers identify problems early and respond to regulatory changes.
Third, companies should build greater flexibility into workforce planning. This could include developing local talent, investing in employee training, and distributing certain capabilities across different locations. The goal is not to abandon international hiring, but to avoid relying too heavily on a single route to access skills.
A Changing Approach to Global Talent
The US Green Card suspension reflects a wider debate about how countries balance local employment priorities with the need for skilled workers from abroad. For businesses, the challenge is to remain competitive while responding to these changing expectations. International talent will continue to matter, but the way companies recruit, retain, and move employees across borders may require greater planning.
Ultimately, the organisations best prepared for this environment will be those that treat workforce strategy as a core business decision. Building the right skills, maintaining compliance, and developing talent in multiple markets can help companies remain adaptable as immigration policies evolve.
The question for global businesses is no longer simply where they can find the right people. It is also how they can build a workforce that remains effective when the rules governing international talent change.
