India's leading IT services company Tata Consultancy Services (TCS) on Friday responded to the US government's suspension of the Permanent Labour Certification (PERM) programme. The company asserted that the move is unlikely to affect its hiring plans or customer engagements in the country.
TCS Reacts To US Green Card Suspension
In an official statement, TCS said it would comply with any directive issued by the US Department of Labour. The company added that its US workforce strategy focuses on hiring local talent, supported by campus recruitment. The statement noted that TCS currently operates across 31 offices and delivery centres in the US and plans to hire another 15,000 people over the next five years.
“We have noted the announcement by the US Government on the Permanent Labor Certification Program (PERM) and TCS will comply with any directive from the Department of Labor. Our workforce strategy in the US is anchored in hiring local talent, supported by a robust campus recruitment model. We have built a significant local workforce across 31 offices and delivery centers throughout the country. As we had announced earlier, we intend to hire an additional 15,000 people in the US over the next five years, to further augment our local workforce,” the statement read.
Will It Affect Its Employees?
The company further reacted to PERM concerns, noting that it had filed only a single-digit number of PERM applications over the past two years and does not expect the suspension to have a significant impact on its operations or workforce plans. “Our PERM applications were in single digits in the last two years and hence we do not expect the suspension of the program to impact our workforce strategy and customer engagements,” the statement added.
Tata Among Firms Suspended From US PERM
TCS’ response came after the US government suspended Microsoft and several other IT companies, including Cognizant, Infosys, Tata Consultancy Services (TCS), Wipro, Capgemini and HCL, from the PERM programme on Thursday, citing alleged fraud. The announcement was made by US Labour Secretary Keith Sonderling, with Vice President JD Vance, the head of the US Anti-Fraud Task Force, by his side.
"I am hereby suspending from the Permanent Labour Certification Programme some of the largest IT outsourcing firms in the world, Cognizant, Infosys, Tata, Wipro, HCL, and Capgemini," Sonderling said. "We will not accept any new or process any pending permanent labour certification applications involving these companies. Since 2009, just these companies alone have requested almost three million foreign workers. They've received over 230,000 H-1B visa approvals and over 100,000 permanent labour certifications," he added.
The PERM programme allows companies to sponsor eligible H-1B visa holders for US permanent residency, also known as green cards. The suspension is seen as a setback for Indian professionals working in the US, especially those employed by major IT services companies such as Cognizant, Infosys, TCS, Wipro, HCL and Capgemini, as it can complicate their path to permanent residency.
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