1 hr ago
TCS Expects Little Impact From US PERM Suspension
The US government has suspended some companies from a program that can help foreign workers get permanent residence.
Tata Consultancy Services, or TCS, says it will follow any instructions from the US Department of Labor.
TCS also says it made very few applications through the program in the last two years.
Because of that, it expects the suspension to have little effect on its plans or its work for customers.
The company says it hires people locally in the United States and recruits from campuses.
It plans to hire 15,000 more people there over the next five years.
Nasscom says this decision concerns one immigration route and should not be confused with the broader movement of skilled workers.
US officials say investigations into alleged abuse prompted the suspension and have argued that foreign hiring can hurt American workers.
Tata Consultancy Services said its PERM applications were in single digits over the past two years and it expects little effect on its workforce strategy or customer engagements.
The company said it will comply with any directive from the US Department of Labor.
TCS plans to hire 15,000 additional employees in the United States over the next five years, emphasizing local recruitment and campus hiring.
The US government suspended participating companies from the Permanent Labor Certification Program amid active federal investigations into alleged program abuse.
Nasscom said the decision concerns a specific immigration pathway and should be distinguished from skilled talent mobility; US officials argued the program had harmed American workers.
- Who
- Tata Consultancy Services (TCS), the US government, and the National Association of Software and Service Companies (Nasscom).
- What
- TCS said the suspension of the Permanent Labor Certification Program is unlikely to significantly affect its workforce plans or customer engagements, and reiterated its plan to hire 15,000 people in the United States.
- Where
- The United States.
- When
- TCS responded on Friday; the articles do not specify the date of that Friday.
- Why
- The US government suspended companies from the program amid active federal investigations into alleged abuse; TCS said its recent PERM applications were in single digits.
Company and Industry View
US Government View
Impact of PERM suspension
Company and Industry View
TCS said its PERM applications were in single digits over the past two years, so it does not expect the suspension to affect its workforce strategy or customer engagements.
US Government View
The US government suspended companies from the program amid active federal investigations into alleged abuse.
Foreign-worker hiring
Company and Industry View
Nasscom said the decision affects a specific immigration pathway and that immigration and skilled talent mobility should not be treated as the same issue; it also said Indian technology companies have reduced reliance on H-1B visas and expanded local hiring.
US Government View
US Labour Secretary Keith Sonderling and Vice President JD Vance argued that foreign-worker hiring through outsourcing firms had displaced or undercut American workers.
Key facts
- TCS PERM applications
- In single digits over the past two years, according to TCS.
- Planned US hiring
- 15,000 additional employees over the next five years.
- TCS US presence
- 31 offices and delivery centres.
- Program
- The Permanent Labor Certification Program (PERM), used by employers seeking labor certification for certain foreign workers applying for permanent residence in the United States.
- Companies named as suspended
- Cognizant, Infosys, Tata, Wipro, HCL, Capgemini, Microsoft, and Adobe.
- TCS Q2FY27 results
- Net profit rose 15% year-on-year to Rs 13,884 crore, and revenue rose 11.22% to Rs 73,188 crore.
Quotes
Tata Consultancy Services
Indian technology company responding to the US PERM suspension
“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.”
financialexpress.com
“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.”
financialexpress.com
Keith Sonderling
US Labour Secretary
“Since 2009, just these companies alone have requested almost 3 million foreign workers. They received over 230,000 H1B Visa approvals and over 100,000 permanent labour certifications that's hundred and thousands of jobs that were taken from American workers.”
deccanchronicle.com
Sources
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