KOCHI: The new restrictions imposed by the Trump administration, which make it difficult for Indian IT companies to deploy employees in the US, could create significant opportunities for India in the long run, according to industry assessments.
Eight major technology companies, including TCS, Infosys, Wipro, HCLTech and Cognizant, were recently suspended from the US Permanent Labour Certification (PERM) process. This will restrict their ability to process permanent residency applications for foreign employees. The new situation could prompt companies to shift more high-value technology services to India instead of deploying employees directly in the US. Jobs in areas such as artificial intelligence (AI), cybersecurity, product engineering, architecture and industry-specific solutions are increasingly likely to move to India.
Despite the restrictions, Indian IT companies, including TCS, are planning to increase local hiring in the US. TCS has announced plans to recruit 15,000 people in the country over the next five years. The company also said its PERM applications had remained in single digits in each of the past two years and that the latest restrictions would not affect its hiring plans or customer service.
Trump's move could delay Green Card applications for Indian employees in the US and create uncertainty over their long-term plans to settle there. Although the PERM suspension will not cancel existing H-1B visas, it affects a key pathway through which temporary foreign workers can seek permanent residency.
The new restrictions could accelerate the shift in Indian IT companies' business models from deploying large numbers of employees to developing high-value technology and intellectual property. With the help of AI, even small teams in India could increasingly handle complex global projects, potentially strengthening the country's position as a major technology services hub.
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