Featured image courtesy of Wipro.

The US Department of Labor has suspended Wipro, alongside Cognizant, Infosys, Tata, and HCL, from its PERM green card program. This move, also affecting major tech players like Microsoft and Adobe, comes as US officials cite exploitation of visa programs at the expense of American workers. The immediate consequence for these firms is a halt in their ability to sponsor foreign workers for permanent residency in the United States, as first reported by The Hindu and Startuptalky.

The Program Electronic Review Management (PERM) system is a foundational pathway for US companies to obtain green cards for foreign employees, particularly skilled workers in technology. Indian IT services giants have historically relied on a global talent pool to staff US projects. This suspension hits at the heart of their operational model. US officials point to a tightening regulatory environment and increased scrutiny over immigration practices, which have long been central to the offshore-onshore hybrid delivery model of these firms. The program halt directly impacts talent acquisition strategies and the cost structures for delivering services to US clients.

This restriction on its primary market comes just months after Wipro made a significant move into consumer goods in India. In August 2026, Wipro acquired a 60% stake in Dermatouch for ₹387.5 crore. This showed Wipro’s intent to capture a share of India’s personal care market. At the time, this publication noted Wipro’s “Multi-Front Strategy,” which included acquisitions and manufacturing incentives. The Dermatouch deal positioned Wipro to target a specific segment of the personal care market.

The contrast between these two developments is stark. Wipro faces tightening immigration policies in its largest market, potentially limiting its access to skilled labor and increasing operational complexities in a highly competitive IT services industry. Simultaneously, it is making substantial investments in India’s domestic consumer market, a sector with entirely different business models, supply chain dynamics, and regulatory environments. This push and pull suggests a company actively recalibrating its growth engines. While the IT services business continues to be a cash cow, the US green card suspension reveals the inherent volatility and regulatory risks associated with relying heavily on overseas talent mobility.

This move is consistent with a broader trend among large Indian conglomerates to diversify beyond their core competencies, tapping into the country’s rising consumer spending power. For Wipro, this represents a tangible effort to build a B2C revenue stream that is less susceptible to international policy shifts or the cyclical nature of enterprise IT spending. It is a bet on domestic growth, contrasting sharply with the globalized, talent-arbitrage model of its IT services arm.

The sequence of these events implies a strategic re-evaluation within Wipro. The US suspension for PERM green cards forces a critical look at how Indian IT firms will staff their US operations long-term. This could accelerate shifts towards greater local hiring in the US, increased automation of tasks, or a renewed focus on delivering services from India. Simultaneously, Wipro’s investment in Dermatouch shows India’s internal market as a significant growth vector. It suggests that for some Indian tech giants, future growth may increasingly come from diversified portfolios addressing domestic demand, instead of expanding global IT service delivery, which now faces escalating regulatory headwinds.

Wipro’s immediate challenge lies in adapting its US talent strategy in light of the PERM program suspension. The company’s August 2026 acquisition of a 60% stake in Dermatouch for ₹387.5 crore, targeting India’s personal care market, reveals a company hedging its bets and actively seeking new avenues for revenue less tied to cross-border talent flows.

What US program has Wipro been suspended from?

Wipro has been suspended from the Program Electronic Review Management (PERM) green card program by the US Department of Labor.

Which other major companies were suspended alongside Wipro?

Cognizant, Infosys, Tata, HCL, Microsoft, and Adobe were also suspended from the PERM program.

What was Wipro’s significant acquisition in August 2026?

In August 2026, Wipro acquired a 60% stake in Dermatouch for ₹387.5 crore.

Compiled by Launch91 Desk from the sources linked above. More about Launch91.