Wipro says US PERM suspension will not impact business due to local hiring
Wipro announced the US suspension of green card processing for certain IT firms will not hurt its business, but workers face long delays.
Visa Sponsorship · Source: The Hindu BusinessLine
What happened
On October 8, the US administration suspended the Permanent Labor Certification program for specific IT companies. This program, known as PERM, is the first step for employers sponsoring foreign workers for green cards. Affected companies include Microsoft, TCS, Infosys, Wipro, and Cognizant. The government accused these firms of abusing the system to replace American workers.
Wipro filed a statement on Tuesday saying this suspension will not have a material impact on its operations. The company stated that over 80 percent of its workforce in the United States is hired locally. Wipro also noted that the PERM suspension is a specific pathway to permanent residency and is separate from broader skilled talent mobility programs like the H-1B visa.
Introduced in 2005, the PERM program is run by the US Department of Labor. It requires employers to prove they could not find enough qualified American workers for a particular job before hiring a foreign worker. The suspension stops targeted companies from submitting new PERM applications and halts the processing of pending ones.
By the numbers
- 80% — The portion of Wipro's US workforce that is hired locally.
- October 8 — The date the US administration suspended the PERM program for certain companies.
- 2005 — The year the PERM program was introduced by the US Department of Labor.
Why it matters
This suspension directly affects foreign professionals relying on these specific companies for permanent residency in the United States. While the companies report no major business damage due to their local hiring strategies, employees waiting for their employers to file or process PERM applications are now stuck. The freeze stops the critical first step toward getting a green card.
The situation highlights a growing gap between corporate resilience and employee vulnerability. Companies like Wipro have adapted by localizing their workforce, insulating their operations from immigration crackdowns. However, foreign workers at these targeted firms bear the burden of the policy change, facing frozen immigration timelines and increased uncertainty about their status.
Who this hits
Foreign workers at targeted IT firms
Employees at Microsoft, TCS, Infosys, Wipro, and Cognizant cannot have new PERM applications filed right now. Those with pending applications at these companies will also see their processing halted by the government.
Local US tech workers
The government claims this suspension protects American jobs from being replaced by foreign labor. Companies like Wipro are emphasizing their heavy reliance on local talent to maintain business continuity and comply with regulations.
What to do this week
- Check with your immigration attorney or human resources department to confirm if your employer is on the suspension list.
- Ask your employer how this pause impacts your specific green card timeline and pending applications.
- Review your current visa validity to understand how much time you have before needing further sponsorship steps.
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My take
I see companies like Wipro protecting their bottom lines by hiring locally, which makes perfect business sense. But the reality is that the burden of this PERM suspension falls entirely on the immigrant workers. If you are waiting in the green card line at one of these targeted firms, you need to prepare for serious delays.