Branch² Intelligence

What is PERM? Why Trump suspended Microsoft and Indian IT firms from green-card programme

IN · 2026-10-08

India — direction and magnitude withheld

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Key takeaway

US suspends Microsoft and major Indian IT firms from the PERM green card program, citing misuse.

  1. Step 1 · The triggerUS Department of Labor suspends Microsoft and major Indian IT firms from the PERM program, blocking new permanent labor certifications for foreign workers
  2. Step 2 · Knock-onIndian IT firms face higher US talent attrition and costlier workforce replacement as H-1B holders lose a pathway to permanent residency
  3. Step 3 · Knock-onUS enterprise clients rebid or shift contracts to competitors with stable immigration compliance, increasing project churn for Indian IT suppliers
  4. Step 4 · Reaches youIndian SMEs supplying or subcontracting for these IT majors see delayed onboarding, contract uncertainty, and margin pressure as US-facing work is disrupted

The trigger is reported by the source below. The steps that follow are Branch²’s traced reasoning — how the shock could reach a business like yours, not a prediction.

Source: livemint.com

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