IBM ends US visa and green card sponsorship for most Consulting roles

what happened

IBM told Reuters it will stop sponsoring US work visas and green cards for most positions in its Consulting division, which has more than 150,000 staff. Moody's reports that the company cited years of falling participation in high-skilled visa programs, along with shifting skill needs and client requirements, as the reasons for the decision.

Bloomberg News, citing an internal document it said it had seen, reported that affected employees can either keep working for IBM from outside the country or leave by year-end. The change comes as the administration of Donald Trump scrutinizes foreign tech hiring closely. Last month IBM, together with Microsoft, Adobe and several large outsourcers, including Cognizant, Infosys and Tata Consultancy Services, was barred from a key filing step on the path to permanent residency.

why it matters

For markets, the move signals that tighter US immigration policy is raising hiring costs in IT services and consulting, where many projects depend on bringing in specialists. Earlier, the White House set a one-time $100,000 fee on new H-1B petitions, which could encourage more work to be moved offshore.

market impact

IT outsourcing and consulting: tighter hiring rules for foreign workers raise staffing costs across the sector

tags

instruments