Business
oi-Prakash KL
Tata Consultancy Services (TCS) has played down concerns over the US government’s decision to freeze its access to the Green Card labour certification process, saying the move is unlikely to change how it hires employees or serves clients in the country.
In a statement, the TCS said, “We have noted the announcement by the US Government on the Permanent Labour Certification Program (PERM) and TCS will comply with any directive from the Department of Labour. 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 centres throughout the country.”
Tata Consultancy Services stated a US Department of Labor freeze on the PERM Green Card process, affecting firms including Infosys and Wipro, will not disrupt its business due to minimal recent applications and a focus on hiring 15,000 local US employees.
The IT services company said it had filed only a handful of applications under the Permanent Labour Certification (PERM) programme in the past two years. With applications remaining in single digits during that period, TCS does not expect the latest US action to disrupt its business plans.
“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. 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.
The issue came into focus after the US government suspended eight technology companies from the PERM programme. Alongside TCS, the list includes Infosys, Wipro, HCLTech, Cognizant, Capgemini, Microsoft and Adobe.
The US Department of Labor has stopped accepting new PERM applications from the affected companies and halted the processing of pending cases. The action has raised questions about the impact on foreign professionals who rely on employer sponsorship to secure permanent residency.
Why The PERM Freeze Matters To Indian IT Employees
The Green Card process can be a long wait even under normal circumstances. The latest suspension adds another layer of uncertainty for those whose employers have yet to complete the required labour certification.
The PERM is a key step in many employment-based Green Card applications. Employers must establish that recruiting a foreign worker will not adversely affect the wages and working conditions of similarly employed American workers before proceeding with the relevant immigration process.
The programme should not be confused with the H-1B visa system. While H-1B visas allow companies to employ eligible foreign professionals temporarily, the PERM process is generally linked to the route towards employment-based permanent residency.
This means the two programmes have different implications. The PERM suspension does not automatically invalidate existing H-1B visas, but employees waiting for Green Cards could face delays if their cases cannot move forward.
The extent of the disruption will depend on how long the restrictions last and the status of individual applications.
