Nasscom has sought to cool a fresh round of scrutiny around Indian technology companies and their use of the H-1B visa, arguing that only a limited number of workers on the programme eventually move on to green cards through the PERM labour certification process. The industry body's intervention comes at a time when immigration policy, offshore hiring and the role of Indian IT services firms in the United States are once again under political and regulatory attention.
The clarification is significant because PERM is the first formal step in many employer-sponsored permanent residency applications in the US. It requires a company to demonstrate that no qualified American worker is available for the role before sponsoring a foreign employee for a green card. Nasscom's position suggests that the H-1B pipeline should not be viewed as a broad backdoor to permanent settlement, but rather as a narrower channel used for specialised skills in a highly regulated labour market.
Visa Pathway Reality
Nasscom's central argument is that the number of H-1B workers who actually transition into green cards remains small relative to the total population of visa holders. That distinction matters in the current debate, where critics often conflate temporary work visas with long-term immigration outcomes. By separating the two, the industry body is attempting to reframe the discussion around the practical use of the visa system rather than around political narratives.
The H-1B programme has long been a flashpoint in the US, especially in sectors such as technology, consulting and engineering, where employers seek access to global talent. Indian IT companies have historically been among the largest users of the visa category, though their dependence on it has declined over time as firms have expanded local hiring, nearshoring and offshore delivery models. Nasscom's latest remarks reinforce that shift, implying that the industry's footprint is now far broader than the visa debate alone suggests.
Global Compliance Focus
Nasscom also emphasised that Indian IT companies operate in more than 80 countries and have consistently complied with local regulations. That point is aimed at countering the perception that Indian firms are uniquely reliant on US work visas or that they exploit regulatory gaps to scale their businesses. The industry body is effectively arguing that these companies are multinational employers subject to a wide range of labour, tax and immigration frameworks, not just the US system.
This global compliance narrative is important for startups and venture capital observers as well. Indian technology services firms have increasingly become part of the broader innovation ecosystem, providing enterprise infrastructure, digital transformation support and engineering services to startups and large corporations alike. Any tightening of visa rules or reputational damage to Indian IT firms can ripple through the wider tech economy, affecting hiring, delivery models and cross-border expansion strategies.
The issue also has implications for Indian professionals working abroad. H-1B remains a critical route for highly skilled workers entering the US market, but the pathway from temporary employment to permanent residency has become more uncertain amid policy swings and administrative delays. Nasscom's comments appear designed to reassure stakeholders that the system is being used for legitimate talent mobility, not as a mass migration channel.
Policy And Market Stakes
The timing of Nasscom's statement is notable because immigration policy has become increasingly intertwined with domestic political messaging in the US, especially during periods of labour-market anxiety. For Indian IT firms, the stakes are commercial as much as reputational. Visa restrictions can raise operating costs, complicate client servicing and accelerate the need for local hiring, while also forcing companies to redesign delivery models.
At the same time, the broader market context has changed. Indian technology companies are no longer simply labour exporters; many are global digital services providers with diversified revenue streams and delivery centres across continents. That evolution weakens the argument that the H-1B programme is central to their business model, even if it remains strategically important for niche assignments and client-facing roles.
Nasscom's message, in essence, is that the debate should be grounded in data and compliance rather than assumption. By highlighting the limited conversion from H-1B to green cards and the industry's multinational operating base, the body is trying to defend the legitimacy of Indian IT firms at a moment when immigration policy remains politically charged and economically consequential.