'Don't worry about PERM': Former HCL tech CEO Vinnet Nayyar explains why Trump admin's action against 'indentured servants' will help Indian techies than hurt

Former HCL Technologies CEO Vineet Nayyar has argued that US restrictions on employment-based immigration could create new opportunities for India's technology industry by encouraging more American companies to move sophisticated technology work to India rather than relocate Indian professionals to the United States.

In a social media post, Nayyar said the immediate impact of restrictions affecting the PERM process, which is used by employees seeking permanent residency in the US, may be limited for Indian IT companies. He argued that the bigger question is whether India can use the changing environment to move beyond supplying technology workers and take on greater responsibility for product development, innovation and intellectual property.

Drawing on more than three decades of experience in the technology industry, Nayyar said the shift could mark another transition for Indian IT, similar to the move from the traditional onsite model to offshore delivery.



Also Read: PERM ban is not just an H-1B problem: Who else could lose their green-card path?

Why US visa restrictions may have a limited direct impact

Nayyar cited figures showing that Indian IT companies accounted for fewer than 1,400 of the 117,849 PERM certifications issued last year, representing less than 2%. He said the numbers suggested that the direct effect on Indian IT companies could be smaller than media coverage of the restrictions might indicate.

Rather than focusing only on the number of Indian professionals who can move to the US, Nayyar suggested that the industry should examine how restrictions on mobility could influence where technology work is performed.

He said the US may be seeking to reduce the movement of Indian technology professionals to America, but the unintended consequence could be that more American technology work is carried out in India.

From offshore delivery to ownership of technology

Nayyar traced the evolution of India's IT services industry to a model in which companies sent engineers to the US to carry out work for clients. Over time, businesses recognised that much of the work could be completed from India, leading to the development of the onsite-offshore model.

Having witnessed that transition, he suggested that the industry could now be approaching another turning point, with advances in technology enabling smaller teams in India to handle more complex assignments.

However, he stressed that the next phase should not be limited to transferring coding and maintenance work to India. He identified architecture, product engineering, cybersecurity, artificial intelligence implementation and industry-specific solutions as areas where Indian technology teams could assume greater responsibility.

Nayyar argued that Indian teams should be involved in deciding what products and systems need to be built, rather than simply following specifications prepared by clients overseas. He also called for Indian companies to take a more active role in redesigning technology platforms and developing products and intellectual property of their own.

AI could change the relationship between growth and hiring

Nayyar also highlighted a potential challenge for India's IT sector as artificial intelligence improves productivity. For much of the industry's development, he said, business growth and employment growth had moved together: winning more contracts generally meant hiring more engineers.

That relationship could weaken as AI allows companies to deliver more work with fewer people. In such a scenario, Indian IT companies could secure more advanced assignments and generate greater value without expanding their workforce at the same rate.

He said the industry would therefore need to rethink how it measures success, placing greater emphasis on the complexity of work performed, the value created by each employee and the development of high-value technical capabilities.

Also Read: Asim Munir drags Pakistan into the Saudi- Houthi war under the Mecca pact without consulting the country's political leadership

Indian IT must compete on capability, not cost

Nayyar said India's technology industry had historically competed largely on the cost of its workforce, but argued that its future growth would depend more on the capabilities of its professionals.

He raised questions about whether India could develop more technology architects rather than focus predominantly on programmers, build products and intellectual property domestically, and shift more global decision-making to the country.

He also highlighted the possibility of creating greater value per employee, potentially allowing companies to pay technology professionals better.

Nayyar concluded that the debate over US visas should be viewed in the context of a larger opportunity for India. Rather than concentrating solely on the restrictions facing Indian engineers seeking to work in America, he argued, the industry should focus on attracting more high-value American technology work to India.