New Delhi, Oct 9: Tata Consultancy Services (TCS) has said that the US government’s suspension of its participation in the Permanent Labor Certification (PERM) programme will not affect its workforce strategy or customer engagements. The Indian IT services giant said it had submitted only a single-digit number of PERM applications over the past two years and continues to focus on hiring local talent in the United States.
The US government announced the suspension of eight technology companies from the green card programme on Thursday. The companies include major IT firms such as TCS, Infosys, Wipro, Cognizant, HCL, Capgemini, Microsoft and Adobe. The move is part of a broader crackdown on alleged misuse of immigration programmes and concerns about employment opportunities for American workers.
TCS Says Impact on Business Will Be Limited
In a statement, TCS said its limited use of the PERM programme means the suspension is unlikely to affect its business operations or employee recruitment plans in the United States.
The company also confirmed that it would comply with any directions issued by the US Department of Labor. TCS said its American workforce strategy is based on recruiting local professionals and maintaining a strong campus hiring programme.
The company has established a significant local workforce across 31 offices and delivery centres in the United States. According to TCS, this local presence supports its operations and customer engagements across the country.
TCS also reiterated its plan to recruit an additional 15,000 employees in the US over the next five years. The proposed recruitment drive is intended to strengthen its local workforce and expand its ability to serve American customers.
US Suspends Eight Technology Companies from PERM Programme
The US government announced the suspension of eight technology companies from the PERM programme, which provides a route for employers to sponsor eligible foreign workers for permanent residence.
US Labour Secretary Keith Sonderling said the Department of Labor would stop accepting new applications and processing pending permanent labour certification applications involving the affected companies.
The action was announced by Vice President JD Vance, Labour Secretary Keith Sonderling and Attorney General Todd Blanche as part of an initiative under the US Anti-Fraud Task Force.
According to Sonderling, the affected companies had collectively requested nearly three million foreign workers since 2009. He also cited more than 230,000 H-1B visa approvals and over 100,000 permanent labour certifications associated with the companies.
US officials argued that these programmes had contributed to foreign workers taking employment opportunities away from American citizens. The suspensions reflect the administration’s focus on reviewing immigration practices and protecting domestic employment.
However, the government’s allegations and the wider implications of the action remain important issues for the affected companies and the technology industry.
Nasscom Says Immigration and Skilled Talent Mobility Are Different Issues
India’s technology industry association, Nasscom, said the suspension affects a specific immigration pathway and should not be confused with the broader movement of skilled professionals between countries.
According to Nasscom, immigration procedures and skilled talent mobility are separate issues that require different approaches. The association said the PERM programme decision should be viewed in this context.
Nasscom also highlighted the role of the H-1B visa programme in helping US businesses address short-term shortages of specialised skills. The programme has historically allowed companies to recruit qualified foreign professionals when specific talent requirements arise.
At the same time, the association said Indian technology companies have reduced their dependence on H-1B visas in recent years. Many firms have expanded local recruitment and invested in building their domestic workforces in the United States.
Nasscom added that Indian IT companies work with a large share of Fortune 500 businesses, supporting innovation, business expansion and local employment. It also noted that the number of employees moving from H-1B status to permanent residency through the PERM process is relatively limited.
The association expressed confidence that Indian technology companies would continue to comply with applicable laws and regulatory requirements in the US and other markets.
What Is the PERM Programme?
The Permanent Labor Certification programme is administered by the US Department of Labor. It generally requires employers seeking to sponsor foreign workers for certain employment-based green cards to complete a labour certification process.
This process is intended to establish that there are not sufficient qualified and available US workers for the relevant position and that employing a foreign worker will not adversely affect the wages and working conditions of similarly employed US workers.
The PERM process is distinct from the H-1B visa programme, which allows US employers to hire eligible foreign professionals in specialty occupations for a temporary period.
Therefore, suspending access to the PERM programme does not automatically mean that every affected company’s entire US workforce or all its existing customer contracts will be disrupted. The practical impact depends on the scope of the government action and the individual circumstances of the companies and workers concerned.
Implications for Indian IT Companies
The suspension comes at a challenging time for India’s technology services industry, which relies heavily on the US market. The approximately USD 300 billion Indian IT industry faces increasing scrutiny over work visas, immigration compliance and the cost of sending skilled professionals to overseas assignments.
Restrictions on permanent labour certification could create uncertainty for companies that rely on the programme to sponsor eligible employees for green cards. They may need to review recruitment plans, employee immigration cases and long-term workforce arrangements.
However, TCS’s statement suggests that the immediate impact on its operations could be limited because of its low number of recent PERM applications and its focus on local recruitment.
The broader consequences for the industry will depend on how the US authorities implement the suspensions, how long the restrictions remain in place and whether additional immigration measures are introduced.
US Also Announces Review of J-1 Visa Programme
In a separate development, Vice President JD Vance announced an investigation into the J-1 visa programme for research scholars used by several major American universities.
The institutions mentioned included Yale, Harvard, Stanford and the California Institute of Technology (Caltech).
The move signals a broader review of selected immigration programmes as the US administration increases scrutiny of foreign worker recruitment and international talent mobility.
Conclusion
TCS has maintained that the US green card programme suspension will not significantly affect its workforce strategy or customer engagements. The company’s limited number of recent PERM applications, established local operations and plan to hire 15,000 additional US employees over five years support its stated focus on domestic recruitment.
Meanwhile, Nasscom has urged stakeholders to distinguish permanent residency procedures from the wider movement of skilled professionals. The developments underline the growing importance of immigration compliance and local hiring for Indian IT companies operating in the United States.
The longer-term impact will depend on the implementation of the US government’s decision and any subsequent changes to immigration policy.
