Analysts warn immigration scrutiny could widen to other major IT services companies
Hyderabad: The suspension of Cognizant’s permanent labour certification (PERM) filings by the Trump administration has raised concerns among Indian technology professionals working in the US, with industry analysts saying the impact could widen if scrutiny is extended to other major IT services companies.
The suspension comes amid a broader US investigation into alleged fraud involving the H-1B and PERM employment visa programmes.
PERM is a key step in the employment-based Green Card process. Under the programme, employers are generally required to establish that there are no sufficient US workers who are able, willing, qualified and available for the job, and that hiring a foreign worker will not adversely affect the wages and working conditions of similarly employed US workers.
The immediate impact is expected to be on Cognizant employees who have spent several years in the US on H-1B visas and have either entered or were preparing to enter the Green Card process.
According to industry analyst Pareekh Jain, who is the CEO of EIIRTrend and Pareekh Consulting, the development posed talent and reputational risks for Cognizant. He said employees could become less inclined to remain with the company if they faced uncertainty over their Green Card process, while clients could view its ability to attract and retain talent as a potential risk.
Jain said employees several years into their US careers could be particularly affected, as many technology professionals begin the Green Card process only after spending several years on H-1B visas.
“This could be the tip of the iceberg,” Jain said, warning that greater scrutiny of the Green Card process could create a new layer of immigration risk for technology workers.
He said Cognizant employees would have to wait and watch in the short term, as a legal challenge by the company or court-ordered relief could alter the situation. In the medium term, affected employees could consider moving to other employers in the US or returning to India.
Indian technology workers in the US said the development had added uncertainty for employees who have been waiting for years to progress through the employment-based Green Card system.
Y. Harish Reddy, a technology professional working in Kentucky, said the decision could affect workers relying on employer sponsorship to initiate or file new PERM applications for permanent residency.
“As of now, the action is limited to Cognizant. If it expands to other major tech companies, the impact could be much greater,” he said.
M. Manoj Reddy, who works for an IT consultancy in Ohio, said the impact would be significant for Cognizant employees but the action should not necessarily be seen as a broader restriction on Indian technology professionals in the US.
“The action is currently specific to Cognizant, which has faced allegations of fraud. So, I see it more as a regulatory or departmental action against the company rather than something that affects the entire IT industry,” he said.
The key concern for the Indian IT sector is whether the action against Cognizant remains company-specific or becomes part of a wider examination of PERM filings by large technology services companies.
According to US Citizenship and Immigration Services data, Cognizant had 3,510 approved H-1B visa petitions for fiscal year 2026, placing it sixth among companies in the US, behind Amazon, TCS, Infosys, Apple and Microsoft.
Cognizant was contacted for its response and clarification. The company had not responded to queries.
