May have complex, far-reaching implications for India: Priyank Kharge on US PERM move
Bengaluru: The US government’s suspension of the Permanent Labour Certification Programme (PERM) for major IT outsourcing companies could have complex and far-reaching implications for India, with the move posing challenges to traditional IT outsourcing while potentially accelerating the expansion of Global Capability Centres (GCCs) and high-value technology work in the country, Karnataka IT and BT Minister Priyank Kharge said on Friday.
Responding to the development, Kharge said the suspension of the programme, a critical step for foreign workers, including H-1B visa holders, seeking employment-based green cards, could increase operating costs for Indian IT companies in the United States, make it more difficult to retain skilled employees and reduce flexibility in deploying Indian professionals onsite.
However, he said the development could also create opportunities for India as a global technology hub.
“If moving Indian engineers to the United States becomes more difficult and expensive, more high-value work may increasingly move to where the talent already is available,” Kharge said.
He said the shift could accelerate the expansion of GCCs in India and encourage global companies to move more research and development (R&D), engineering and product development mandates to Indian cities.
The development could also increase domestic demand for senior technology professionals and strengthen India’s position in the global technology ecosystem, he said.
According to Kharge, India has an opportunity to move beyond its established role as a major provider of IT services and emerge as a global centre for product development, artificial intelligence (AI), deep technology and innovation.
He said the implications of the US decision would therefore extend beyond the immediate challenges faced by Indian IT outsourcing companies, potentially influencing how global technology firms distribute their operations and specialised work across countries.
The minister’s remarks highlighted the possibility that restrictions affecting the movement and retention of skilled Indian professionals in the United States could encourage companies to expand technology operations within India, where a substantial talent pool is already available.
While the suspension could create near-term challenges for Indian IT service providers with significant US operations, it could also provide an impetus for India to attract higher-value technology functions and strengthen its role in global research, engineering and innovation.