Nasscom has sought to recalibrate the debate around Indian technology workers in the United States, saying that only a limited number of H-1B visa holders eventually secure green cards through the PERM labour certification route. The statement comes at a time when immigration policy, skilled-worker mobility and the role of Indian IT services firms are once again under scrutiny in the U.S., where the H-1B programme remains politically sensitive and closely watched by employers, workers and regulators alike.
The industry association's position is significant because it addresses a recurring misconception: that the H-1B visa is primarily a backdoor to permanent residency. In practice, Nasscom's framing suggests that the transition from temporary work status to a green card is neither automatic nor widespread. The PERM process, which requires employers to demonstrate that there are no qualified U.S. workers available for a specific role, is lengthy, documentation-heavy and subject to multiple layers of compliance. For many workers, especially those in fast-moving technology roles, the process can be uncertain and slow enough that permanent residency is never reached.
Immigration Reality Check
Nasscom's comments are likely aimed at reinforcing the legitimacy of Indian IT firms' global operating model. The association emphasised that these companies function in more than 80 countries and have always been compliant with local regulations. That point matters because Indian technology services firms have often been portrayed in policy debates as uniquely dependent on U.S. visa programmes. Nasscom's message is that their business footprint is far broader, and that their international staffing practices are shaped by client demand, local hiring rules and country-specific compliance frameworks.
The broader context is a global technology sector facing tighter immigration controls, more intense scrutiny of cross-border staffing and a renewed push in several markets to localise talent. For Indian IT companies, the H-1B route has historically supported on-site delivery for U.S. clients, but it has never been the only channel for growth. Over the past decade, firms have expanded offshore delivery centres, increased local hiring in key markets and diversified their geographic exposure. Nasscom's remarks fit into that strategic narrative, signalling that the industry's dependence on any single visa category is often overstated.
PERM Is Not Routine
The PERM process itself is central to understanding why relatively few H-1B workers move to green cards. It is designed to protect the domestic labour market and requires employers to prove that recruitment efforts did not identify suitable U.S. candidates for the position. Even when an employer is willing to sponsor a worker, the timeline can stretch over years, particularly for applicants from countries with high demand and long backlogs. For Indian professionals, those backlogs have historically been among the most severe, making the path to permanent residency especially difficult.
That reality has practical consequences for both companies and employees. Employers must manage retention, project continuity and compliance risk, while workers often face uncertainty over long-term career planning, family stability and mobility. In that sense, Nasscom's assertion is not merely a statistical point; it is also a reminder that the U.S. immigration system does not function as a straightforward conversion mechanism from temporary skilled labour to permanent settlement.
For startups and venture capital, the issue has a second-order effect. Indian-origin founders, engineers and product leaders often move through the same visa ecosystem that supports larger IT services firms. Any tightening of H-1B rules or PERM scrutiny can affect hiring plans, team composition and the pace at which companies scale across borders. While the immediate statement from Nasscom is aimed at defending the sector's reputation, it also highlights how deeply immigration policy is intertwined with innovation, talent allocation and global growth strategies.
The message from Nasscom is ultimately defensive but measured: Indian IT companies, it argues, are not operating outside the rules, nor are they relying on immigration loopholes as a business model. Instead, they are multinational employers navigating a complex regulatory environment in which permanent residency remains the exception rather than the norm for most H-1B workers.