IT Firms US Green-Card Route Dependence Declines Sharply Amid Suspension of PERM Processing

The IT Industry's Peril: Sharp Decline in Certified Permanent Labour Certification Applications.

The number of certified permanent labour certification (PERM) applications by 13 major IT services companies in the first nine months of FY26 has plummeted. According to a recent analysis by Kotak Institutional Equities. The decline comes as the US administration has suspended new and pending PERM applications involving several top IT firms.

According to the analysis, these 13 major IT services companies recorded a total of 607 certified PERM applications in the first nine months of FY26, a significant drop from the 1,670 applications received in FY25 and 1,756 in FY24. This represents a decline of 64% and 66% respectively.

TCS, one of the largest IT services companies, recorded just two certifications in the first nine months of FY26, a far cry from the 505 certifications received in FY25 and 597 in FY24. Wipro also had two certifications, compared with 206 in FY25. HCLTech, on the other hand, recorded 28 certifications, down from 94 in FY25 and six in FY24.

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Among the other companies covered, LTM recorded 168 certifications in the first nine months of FY26, up from 127 in FY25 and 159 in FY24. Persistent Systems reported 58 certifications, compared with 16 in FY25 and 10 in FY24.

Hexaware Technologies had 73 certifications in the first nine months of FY26, compared with 24 and one, respectively.

PERM is a vital labour-certification stage in the process of obtaining employment-based green cards. The suspension of PERM processing has significant implications for the IT industry's reliance on the US green-card route.

The decline in certified applications suggests that the IT firms are taking steps to diversify their workforce and reduce their dependence on the US green-card route. This shift is likely to have far-reaching consequences for the industry, particularly in the short term.

As the IT industry navigates this changing landscape, it remains to be seen how companies will adapt to the new reality. With the suspension of PERM processing, the industry is likely to focus on exploring alternative routes for talent acquisition and skill development.

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The impact of the PERM suspension on the IT industry will be closely watched in the coming months. As the situation continues to unfold, one thing is clear: the decline in certified PERM applications marks a significant turning point for the industry.

The US administration's decision to suspend new and pending PERM applications has sent shockwaves through the IT industry. With the number of certified applications plummeting, companies are being forced to rethink their strategies for talent acquisition and skill development.

The decline in certified PERM applications is a stark reminder of the industry's vulnerability to changes in government policy. As the industry moves forward, it will be essential to explore alternative routes for talent acquisition and skill development.