Microsoft Denies Allegations of Fraud and Abuse Prompting Visa Policy Changes
NASSCOM, India’s premier tech association, dismissed the recent U.S. skilled‑visa adjustments, while Microsoft reiterated that it does not misuse the program.
Announced on Thursday by Vice President JD Vance and Labor Secretary Keith Sonderling, the revisions bar Microsoft and Adobe from using the PERM system to transition H‑1B holders to green cards. Sonderling also withdrew PERM eligibility for Indian firms Infosys, Tata, Wipro, HCL and Capgemini.
Sonderling said the move stems from criminal investigations and claims of fraud and abuse.
He noted that since 2009 these firms have filed for nearly three million foreign workers, securing over 230,000 H‑1B approvals and more than 100,000 permanent labor certifications, representing hundreds of thousands of positions that could have gone to U.S. workers.
Vice President Vance added what he described as a direct message to Microsoft.
You’re a great American firm, but you must hire American talent. Laying off U.S. workers to swap in foreign labor is unacceptable.
Critics often claim that U.S. employers exploit the H‑1B program to hire cheaper foreign labor, and that Indian outsourcing firms use it to shift work offshore. Some also note that visa holders may stay in the U.S. to pursue residency for relatives.
Microsoft, whose CEO Satya Nadella once held an H‑1B visa and which has cut more than 20,000 jobs since early 2025, objected to the decision in a pointed statement.
The company stated that it only submits H‑1B petitions for candidates meeting the visa’s strict standards, pays its staff some of the tech sector’s highest salaries, and compensates H‑1B workers on par with peers performing similar roles.
It added that its success as a global tech leader relies on building a top‑tier workforce through bolstering the U.S. talent pipeline, hiring domestically, and drawing elite international talent.
NASSCOM and Indian officials, including Minister of State Vardhan Singh, echoed the same view, noting last year that skilled‑talent mobility drives technology advancement, innovation, economic growth and wealth creation in both nations.
NASSCOM, confident in the integrity of Indian tech firms, posted on X that immigration and skilled‑talent mobility are separate matters and should not be conflated.
The group added that Indian tech companies have lowered their reliance on H‑1B visas over the years, while increasing U.S. hiring and cultivating a robust domestic workforce.
They partner with most Fortune 500 firms in the United States, helping them innovate and expand while creating additional local jobs; as a result, relatively few employees move from H‑1B status to permanent residency via PERM.
Microsoft pledged to share further details of its immigration initiatives with the Trump administration.
