US Green Card Curbs: TCS Plans 15,000 Local Hires Despite PERM Suspension

TCS is among eight companies barred from filing or advancing cases under the PERM, a route employers use to sponsor eligible foreign workers for permanent residency.

Despite the restriction, TCS has reiterated its intention to add 15,000 employees in the US over the next five years.

Source : ABPLIVE AI

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Key points generated by AI, verified by newsroom

• TCS downplays PERM suspension; local recruitment plans unaffected.
• US suspends PERM for eight tech firms including TCS.
• Nasscom differentiates PERM from skilled mobility, cites local hiring.

Tata Consultancy Services (TCS) has played down the potential operational impact of the US government's latest immigration action, saying its plans to recruit locally and serve customers in the country remain unchanged. The company said it had filed only a single-digit number of applications under the US green card programme over the past two years, limiting the immediate significance of the suspension for its workforce strategy.

The clarification comes as Washington steps up scrutiny of how technology companies use immigration programmes to recruit foreign professionals. TCS is among eight companies barred from filing or advancing cases under the Permanent Labour Certification Programme (PERM), a route employers use to sponsor eligible foreign workers for permanent residency.

Despite the restriction, TCS has reiterated its intention to add 15,000 employees in the US over the next five years. The company says its approach is built around local recruitment, including campus hiring, rather than relying on the PERM route to shape its workforce.

15,000 US Jobs Still Planned As TCS Emphasises Local Recruitment

The number of PERM applications filed by TCS in recent years is central to its response. In its statement, the company said the count had remained in single digits over the past two years and that it therefore did not expect the suspension to affect its workforce strategy or customer engagements.

TCS said it would comply with any directive from the US Department of Labour. It also pointed to its presence across 31 offices and delivery centres in the country, where it has built a significant local workforce.

The planned addition of 15,000 employees over five years is part of the company's stated effort to expand that base. Its response places the emphasis on recruitment within the US as the government increases scrutiny of immigration pathways used by large technology and outsourcing firms.

What The PERM Suspension Means For The Companies

The US Department of Labour's decision covers TCS, Infosys, Wipro, HCL, Cognizant, Capgemini, Microsoft and Adobe. Labour Secretary Keith Sonderling announced the action on Thursday alongside Vice President JD Vance and Attorney General Todd Blanche, under the US Anti-Fraud Task Force.

The department will not accept new permanent labour certification applications involving the named companies or process pending applications, Sonderling said. He also cited multiple active federal investigations in explaining the inclusion of Microsoft and Adobe.

PERM is a step in the employment-based green card process. The suspension therefore affects the named companies' ability to pursue permanent labour certification for eligible foreign workers through this route. It is distinct from a blanket suspension of the H-1B visa programme.

Sonderling defended the action by pointing to the scale of foreign-worker requests made by the companies. He said that since 2009, they had collectively requested nearly three million foreign workers, received more than 230,000 H-1B visa approvals and obtained over 100,000 permanent labour certifications.

He alleged that the programmes had contributed to hundreds of thousands of jobs being taken from American workers. These assertions are the US administration's stated rationale for the crackdown.

Nasscom Says Skilled Talent Mobility Should Be Viewed Separately

For India's technology industry, the distinction between permanent residency and temporary work visas is an important part of the response. Nasscom said the latest decision concerns a specific immigration route and reiterated that immigration and skilled talent mobility should not be treated as interchangeable issues.

The industry body noted that US employers have historically used H-1B visas to address short-term skill gaps. It also said Indian technology companies had reduced their reliance on these visas in recent years while increasing local hiring and building larger workforces in the US.

Nasscom argued that Indian IT firms contribute to the US economy through their work with a majority of Fortune 500 companies, helping businesses innovate and grow while generating local jobs. It added that the number of employees moving from H-1B status to permanent residency through PERM was relatively limited.

The association said Indian technology companies operate in more than 80 countries and have consistently committed to complying with local laws and regulatory requirements. It expressed confidence that firms would continue to follow the applicable rules in the US.

Why The US Move Matters For Indian IT

The US is the largest market for India's technology industry, making changes to employment-based immigration rules an important consideration for companies that serve American clients. Tighter scrutiny of work visas and higher costs for H-1B applicants have added to the challenges facing firms that move skilled professionals across borders.

The latest PERM suspension adds uncertainty around one route to permanent residency, even as TCS maintains that it does not expect a material impact on its plans. The company's stated reliance on local hiring provides the context for that position, while Nasscom has sought to distinguish the green card process from the broader role of skilled professionals in meeting US employers' talent needs.

Separately, Vance announced an investigation into the J-1 visa programme for research scholars used by nine universities, including Yale, Harvard, Stanford and Caltech. The announcement signals that the administration's scrutiny extends beyond the technology companies named in the PERM action.

Input By : PTI