Bengaluru: Karnataka Minister Priyank Kharge on Friday said the US government’s suspension of the Permanent Labour Certification Programme for major IT outsourcing companies could have complex and far-reaching consequences for India.It would also pose challenges to traditional IT outsourcing while creating opportunities for the country’s technology sector, he said.
In a post on ‘X’, Kharge, who holds Information Technology and Biotechnology portfolio, said the move could increase operating costs for Indian IT companies in the US, complicate the retention of skilled employees and reduce flexibility in deploying Indian professionals onsite.
“For the traditional Indian IT outsourcing model, this is clearly a headwind. It could mean higher operating costs in the United States, greater difficulty in retaining skilled employees and reduced flexibility in deploying Indian professionals onsite,” he said.
However, Kharge said the development could also accelerate the expansion of Global Capability Centres (GCCs) in India, bringing more global research and development, engineering and product development work to Indian cities.
“If moving Indian engineers to the United States becomes more difficult and expensive, more high-value work may increasingly move to where the talent is already available,” he said.
Kharge said the shift could boost domestic demand for senior technology professionals and strengthen India’s position as a global hub for product development, artificial intelligence, deep technology and innovation, beyond its established role as a provider of IT services.
The US programme is a critical step in the employment-based green card process for foreign workers, including H-1B visa holders, he noted.
The US on Thursday suspended eight IT firms, including Microsoft, Tata, Infosys and Wipro, from a programme to apply for green cards for foreign workers, contending that the practice has shut out Americans from the job market.
The announcement was made by Vice President J D Vance, Labour Secretary Keith Sonderling, and Attorney General Todd Blanche as part of the action under the aegis of the US Anti-Fraud Task Force.
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