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New Delhi: Indian information technology companies face mounting pressure in the United States following sharpened regulatory scrutiny over alleged misuse of the H-1B visa and employment-based green card programs. US Department of Labor Inspector General Anthony D’Esposito has warned companies that temporary work visas cannot be treated as a permanent business strategy, asserting that visas like the H-1B should only be utilized when qualified and willing American workers are unavailable for a given role.
Speaking in an interview with an American news channel, D’Esposito stated that visa programs are designed to meet temporary needs rather than serve as a routine operational model for corporations. His remarks come as President Donald Trump’s administration intensifies oversight of foreign worker hiring and employment-based immigration channels. The heightened scrutiny directly affects major Indian IT service providers whose US operations rely heavily on deploying specialized talent from abroad.
Major IT Firms Under PERM Scrutiny
In October, US authorities initiated administrative action under the Permanent Labor Certification (PERM) program against Microsoft, Adobe, and six major technology outsourcing firms. The list includes leading Indian IT companies Tata Consultancy Services (TCS), Infosys, Wipro, and HCL Technologies, alongside Cognizant and Capgemini.
The PERM program is a critical step for US employers seeking to sponsor foreign workers for employment-based green cards. Under its rules, employers must certify that insufficient qualified US workers are available for the position and that hiring a foreign national will not adversely affect the wages and working conditions of American employees. The suspension actions against these firms have disrupted the processing and acceptance of their PERM applications, creating uncertainty for foreign professionals awaiting permanent residency.
Investigation Scope Set to Expand
The federal inquiry centers on allegations that certain employers used immigration programs to replace American workers with lower-paid foreign personnel, though officials note that ongoing investigations and administrative actions do not constitute a final finding of guilt. D’Esposito indicated that the probe is likely to widen, warning that similar actions could soon target additional companies and academic institutions.
He added that his office is coordinating closely with the White House Fraud Task Force, led by Vice President JD Vance, to identify systemic irregularities and abuse within visa programs. Alongside investigative measures, the Trump administration has introduced steep financial conditions to tighten H-1B access, including a requirement of $100,000, or roughly Rs 88 lakh, for certain new H-1B petitions, while extending related visa restrictions through September 2027.
Operational Challenges for Indian Tech Sector
The H-1B program allows US companies to temporarily employ foreign professionals in specialty occupations and has long been central to the Indian IT sector across software development, cloud services, cybersecurity, and technical consulting. While D’Esposito issued a stern warning, the US administration has not formally announced a complete shutdown or overhaul of the H-1B program, focusing instead on audits, employer accountability, and strict compliance.
For Indian IT firms, the immediate challenge lies in balancing business continuity in their largest market with rigorous adherence to evolving immigration rules. If federal investigations expand and PERM restrictions persist, Indian service providers could face significant hurdles in talent deployment, foreign hiring, and green card sponsorship for employees stationed in the United States.
