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Why the US blocked a major IT giant's green cards

10 Sept7 min read· 📷 AG ZN

The US government has suspended Cognizant’s green card filings for foreign employees as part of an immigration fraud crackdown. This regulatory blow severely restricts the ability of Indian IT firms to retain elite tech talent in America.

40%

Onshore Salary Premium for Local Hires

⏳ Time Machine

How today’s news fits into the bigger picture

  1. 2015

    L-1 Visa Crackdown

    US authorities tightened corporate scrutiny on intra-company transfers, forcing Indian IT companies to scale up their local hiring infrastructure.

  2. 2017

    Buy American, Hire American

    An executive order dramatically raised H-1B visa rejection rates for Indian IT service providers to over 30%, squeezing their onsite delivery models.

  3. August 2026

    Immigration Fraud Audits

    US federal agencies intensified audits of tech consulting firms, targeting subcontracting networks and wage rate compliance across multiple states.

  4. Today

    The US suspended Cognizant's green card filings under the PERM visa program.

  5. What happens next?

    Cognizant will undergo exhaustive internal audits to address compliance flags by late 2026.

In a move that has sent shock waves through the Indian technology sector, US immigration authorities have suspended green card filings for employees of Cognizant. This suspension comes as part of a broader, intensified federal crackdown on immigration-related administrative fraud and subcontracting violations in the technology services industry. For decades, Indian IT giants have relied on the promise of permanent residency, or green cards, to recruit and retain high-performing engineers in the lucrative US market. With this critical path blocked, tech companies face major hurdles in project delivery and client engagement. Experts warn that the restriction will significantly increase employee attrition and cause corporate clients to hesitate when outsourcing critical, long-term software projects. This policy shift forces a painful transition from offshore-talent deployment to expensive local hiring, threatening the historically high operating margins of India-centric IT services firms.

💭 If you're wondering…

It is the Program Electronic Review Management process, the first mandatory step a US employer must complete to prove there are no willing and qualified American workers available before sponsoring a foreign employee for a green card.

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