New Delhi, Oct. 12 -- The US suspension of labour certification applications for eight major technology companies could increase operating costs and affect investor sentiment towards Indian IT firms, although greater local hiring and offshoring may help limit the impact, according to a report by JM Financial.

On October 8, 2026, the US administration announced the suspension of eight major technology companies-Microsoft, Adobe, Cognizant, Infosys, TCS, Wipro, HCL Technologies and Capgemini-from the Permanent Labor Certification (PERM) programme.

The US Department of Labor said it would neither accept new applications nor process pending ones involving these companies, without specifying when the suspension would end.

Also, the move pri...