By IBM has ended US visa and green card sponsorship for a majority of roles within its consulting division, according to HRKatha. Affected employees can continue working for IBM from outside the US or leave the company by the end of 2026.
A company spokesperson said the decision to withdraw sponsorship for most consulting roles reflected changes in skill availability and client requirements. IBM Consulting employs more than 1.5 lakh people globally. Bloomberg reported, citing an internal company document, that those unable to transition will have to leave the organisation by the end of the year.
What the sponsorship change covers
The decision applies to IBM Consulting, the professional services arm that competes with firms such as Accenture, Deloitte and the Indian IT services majors. It does not, on the facts reported, apply across all of IBM. The change affects US visa and green card sponsorship for most consulting roles, not every role in the division.
For HR teams in India, the practical question is whether this signals a shift of work to global delivery centres. HRKatha reported that some affected roles may potentially move to global delivery centres, including India, but IBM has not announced any specific workforce transfer or relocation plan. That distinction matters. A policy change on US sponsorship is not the same as a confirmed transfer of roles to Bengaluru, Pune, Hyderabad or other Indian locations.
The H-1B and PERM context for Indian employers
Indian technology and consulting employers are among the largest users of the H-1B visa programme and the Permanent Labour Certification process, commonly called PERM. The US government announced a one-time fee of $100,000 on new H-1B visa petitions last year, according to HRKatha. Last month, Microsoft, Adobe, Cognizant, Infosys and Tata Consultancy Services were suspended from the Permanent Labour Certification process, HRKatha reported.
For Indian HR and payroll leaders, these developments sit inside a broader tightening of US immigration pathways. Reuters reported that IBM’s use of high-skilled visa programmes to address talent shortages has been declining for several years. That decline predates the current sponsorship decision and suggests a longer-term shift in how consulting firms staff US-based work.
What Indian HR teams should watch
The immediate payroll and compliance impact in India is limited because IBM has not announced a transfer plan. No new Indian positions, payroll obligations or relocation packages have been confirmed. HR teams at IBM India and at competitor firms should treat the news as a signal, not a settled workforce plan.
Three areas deserve monitoring. First, whether IBM issues internal communications about moving specific roles or teams to Indian delivery centres. Second, whether affected employees on H-1B or L-1 visas seek internal transfers to India or other countries, which would create cross-border payroll and tax considerations. Third, whether Indian IT services firms see increased demand for offshore delivery as US clients reduce onshore visa-dependent staffing.
The deadlines in the reporting are not fully reconciled. HRKatha stated that affected employees must continue from outside the US or leave by the end of 2026, then separately cited Bloomberg for an end-of-year deadline for those unable to transition. Employers and employees should confirm the applicable date directly with IBM rather than rely on either figure.
Options for affected employees
The reported options are narrow. Employees can explore opportunities to continue working for IBM from locations outside the US. Those unable to make that transition will have to leave the organisation by the end of the year, according to Bloomberg.
For Indian nationals on H-1B visas, returning to India while remaining employed by IBM would typically involve a local employment contract, Indian payroll and Indian statutory deductions such as provident fund, professional tax and income tax at source. Those arrangements are not automatic. They require a formal transfer or a new local contract. HRKatha did not report that IBM has offered such transfers as a structured programme.
What this means for hiring and workforce planning
The decision reinforces a pattern that Indian HR leaders have observed for several years: US consulting work is becoming less visa-dependent and more likely to be delivered from global centres. That does not mean every affected role moves to India. Client requirements, data residency rules and time zone needs all shape where work lands.
For payroll teams, the practical lesson is to prepare for possible inbound transfers without assuming them. Cross-border moves raise questions about salary benchmarking, cost of living adjustments, tax equalisation and social security coverage. Indian employers that receive returning employees from US assignments should confirm whether the employee remains on the same global entity or moves to an Indian legal entity, because that determines which payroll and compliance obligations apply.
The suspension of Infosys, Tata Consultancy Services and Cognizant from the Permanent Labour Certification process last month, as reported by HRKatha, adds another layer. Indian IT firms that rely on PERM for green card sponsorship face separate compliance scrutiny. HR teams at those firms should review their US immigration processes independently of the IBM news.
Sources: HRKatha
Photo: IBM ThinkPad by Simon Law, CC BY-SA 2.0
