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Karnataka’s IT Minister, Priyank Kharge, says reported U.S. limits on employers using the PERM green-card process could pressure Indian IT outsourcing firms and push multinationals to place more high-value engineering and product work in India. That is his forecast. As of this report, no published job, investment, or relocation data shows that such a shift has already happened.
What PERM is, and what it is not
PERM is the U.S. Department of Labor’s Permanent Labor Certification process. It is an employer-run step for a permanent U.S. job opening, and in most cases a U.S. employer must obtain a certified labor certification before filing a petition with USCIS. PERM is not a green card and it is not a visa. It is one stage in the employment-based green-card route.
To certify a case, DOL must be satisfied on two points. First, there are not enough U.S. workers who are able, willing, qualified, and available for the role. Second, hiring the foreign worker will not adversely affect the wages and working conditions of similarly employed U.S. workers. Those two tests are the core of the program, and they explain why labor-market scrutiny of PERM is a recurring policy topic.
What has been reported, and who is the source
Moneycontrol reported on October 9, 2026 that the U.S. government has suspended several large technology companies from participating in PERM, and attributed the list to the Department of Labor. The named companies are Microsoft, Adobe, Cognizant, Infosys, Tata, Wipro, HCL, and Capgemini. The report is the source for both the list and the action.
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The DOL pages on PERM, program disclosures, and processing times explain how the process works. They do not confirm the company-specific restrictions, their legal basis, how long they last, or where they stand procedurally. Until a company-specific primary notice is available, treat the list as Moneycontrol’s reporting, not as an official DOL announcement.
Kharge’s forecast, in his words
Moneycontrol identifies Kharge as Karnataka’s IT Minister. He said: “If relocating Indian engineers to the US becomes more difficult and expensive, global companies could increasingly move high-value technology work to locations where skilled talent is readily available, including India.”
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He describes the effect as running in two directions. Each is a forecast, not a measured outcome.
Pressure on traditional outsourcing
If placing staff in the United States becomes harder or more costly, outsourcing firms that rely on that model could face higher costs or lost work. Moneycontrol also reports that Karnataka accounts for around 40 percent of India’s IT and software exports. That figure is Moneycontrol’s; the article does not name the statistical source, so it should be read as reported rather than independently verified.
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An opening for India-based engineering and R&D
The second direction is that multinationals might move more R&D, engineering, and product development into India, including through their own global capability centres (GCCs). The logic is that work which no longer needs a U.S.-based employee can be done where skilled staff are available. No company-level relocation plans, cost estimates, or observed job shifts are given in the reporting.
PERM and H-1B are different programs
The reported PERM action is often discussed alongside H-1B, but they are separate processes. H-1B is a temporary nonimmigrant work classification. An H-1B labor condition application is a different DOL filing from PERM. Scrutiny of employment-based immigration as a whole does not mean that a PERM restriction on a company automatically suspends anyone’s H-1B status or bars temporary work.
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| Item | PERM | H-1B |
|---|---|---|
| Type of status | Stage in the permanent (green-card) route; not a visa or green card itself | Temporary nonimmigrant work classification |
| Core question for DOL | Are there sufficient U.S. workers available, and would the hire harm similarly employed U.S. workers’ wages and conditions? | Labor condition application is a separate DOL filing; not covered by the PERM test |
| Effect of the reported PERM action | Could affect an employer’s ability to pursue PERM for covered roles (as reported) | Not stated as affected by the reported PERM action in the reporting |
Processing times right now
Queues matter for anyone already in a PERM case. As of October 5, 2026, DOL’s processing times page listed the following:
- Analyst review: priority dates from December 2025.
- Audit review: priority dates from December 2025.
- Average analyst-review processing time for August 2026: 336 calendar days.
These figures change and describe the system as a whole. They are not predictions for an individual case.
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How to judge the forecast
Whether high-value work actually moves depends on how a company’s work can be done. The reporting does not supply company-by-company data, so these four questions are the practical test for any employer’s response:
| Question | Why it matters | What the reporting shows |
|---|---|---|
| Does the role need staff physically in the U.S., or can it be done from India? | Roles that can be done remotely are the ones most easily moved | Not stated for any named company |
| What do U.S. staffing and permanent-residency sponsorship cost and allow? | Cost and flexibility drive whether a company keeps or relocates roles | Not stated |
| Can higher-value R&D, engineering, and product mandates move into an Indian GCC? | Shifting responsibility, not just tasks, is the real test | Presented as an opportunity; no completed moves reported |
| How fast can a company shift roles, teams, and operating responsibility? | Speed determines whether any shift is visible in hiring data soon | Not stated |
What this means if you are affected
For most readers, the headline does not change anything on its own. If you have a PERM case or are planning a green-card path through an employer, these steps are more useful than the forecast:
- Check whether your employer is one of the companies named in the reporting. Confirm the status of any case directly with the employer’s immigration counsel.
- Ask what a restriction would mean for a pending or planned PERM filing, and whether any timeline or alternative route is affected.
- Keep PERM and H-1B questions separate when you speak with your employer or counsel. Ask about each status on its own terms.
- Use the official DOL processing times page for queue expectations, and expect long waits even without any new restrictions.
- Treat reports of job moves to India as forecasts until there are company filings, hiring data, or official statements that show actual change.
The restriction, as reported, concerns employers’ participation in PERM. It is not a revocation of any worker’s existing status and does not apply to all Indian nationals, all employers, or all PERM cases.
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The Bottom Line
The reported PERM restriction on named employers is real only as Moneycontrol reports it, and Kharge’s claim that high-value work could move to India is a forecast. Neither has been shown in job or investment data. For workers, the practical steps are to confirm your employer’s status with its immigration counsel and to plan around the official processing queues.
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