Archive · 9 Oct 2026
TCS Says US PERM Suspension Will Have Minimal Workforce Impact
The US government has suspended some companies from a program used to help certain foreign workers seek permanent residence.
The government says the move is connected to active investigations into possible abuse of the program.
Tata Consultancy Services, or TCS, says it will follow any instructions from the US Department of Labor.
TCS says it made only a single-digit number of applications through the program in the past two years.
It therefore expects little effect on its plans or its work for customers.
The company says it hires locally in the United States and recruits from campuses.
It plans to hire 15,000 more people in the country over the next five years.
Nasscom says this program is one specific immigration route, while US officials argue that foreign-worker hiring has harmed American workers.
Tata Consultancy Services says its PERM applications were in single digits over the past two years and expects little impact on its workforce strategy or customer engagements.
TCS says it will comply with any directive from the US Department of Labor and bases its US workforce strategy on local hiring and campus recruitment.
The company plans to hire 15,000 additional employees in the United States over the next five years and has a local workforce across 31 offices and delivery centres.
The US government suspended several technology and outsourcing companies from the Permanent Labor Certification Program amid active federal investigations into alleged abuse.
Nasscom says the decision concerns a specific immigration pathway; US officials say the companies’ foreign-worker hiring harmed American workers.
- Who
- Tata Consultancy Services (TCS), the US government, and the National Association of Software and Service Companies (Nasscom).
- What
- The US government suspended TCS and other named companies from the PERM program; TCS says it expects minimal impact and will continue local hiring.
- When
- The suspension announcement and TCS response were reported on Friday; the articles do not specify the date.
- Where
- The United States.
- Why
- The US government cited active federal investigations into alleged abuse of the program; TCS says its recent PERM applications were in single digits.
Company and Industry View
US Government View
Effect of the PERM suspension
Company and Industry View
TCS says its applications were in single digits over the past two years, so it expects little impact on its workforce strategy or customer engagements.
US Government View
The US government suspended the companies from the program amid active federal investigations into alleged abuse.
Foreign-worker hiring
Company and Industry View
Nasscom says the decision concerns a specific immigration pathway and should not be conflated with skilled talent mobility; it also says Indian technology companies have reduced H-1B dependence and expanded local hiring.
US Government View
Labor Secretary Keith Sonderling and Vice President JD Vance argued that foreign-worker hiring by outsourcing firms displaced or undercut American workers.
- 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.
- 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.
- Other companies named as suspended
- Cognizant, Infosys, Wipro, HCL, Capgemini, Microsoft, and Adobe.
- US officials' figures
- Keith Sonderling said the named companies had requested almost 3 million foreign workers since 2009 and received more than 230,000 H-1B approvals and over 100,000 permanent labor certifications.
- TCS Q2FY27 results
- Net profit rose 15% year-on-year to Rs 13,884 crore; revenue rose 11.22% to Rs 73,188 crore.
