09 October,2026 11:02 AM IST | New Delhi | mid-day online correspondent
TCS says US green card suspension wont impact workforce strategy. TCS file pic.
The country's largest IT services company Tata Consultancy Services (TCS) on Friday said it does not expect its suspension from the Permanent Labor Certification Programme (PERM) to affect its workforce strategy or customer engagements, according to news agency PTI.
The company said its applications under the green card programme were in single digits in the last two years.
On Thursday, US suspended eight IT firms, including TCS, Infosys, Wipro, Cognizant and Microsoft, from PERM to apply for green cards for foreign workers. It contended that the practice has shut out Americans from the job market.
"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," TCS said in a statement.
TCS said it will comply with any directive from the US Labor Department, and highlighted its workforce strategy is firmly anchored in hiring local talent.
"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," it said.
The Tata Group company added that it has built a significant local workforce across 31 offices and delivery centres throughout the US.
Earlier, TCS had said it intends to hire an additional 15,000 people in the US over the next five years to expand its local workforce.
Microsoft said a majority of its employees were Americans and said that 80 per cent of the 6000 H1-B visa applications it had submitted last fiscal year were to extend or change the status of existing employees and not for recruiting new people.
"We believe in the strength and talent of the American workforce. That is why the vast majority of Microsoft employees in the US are Americans. We look forward to providing the administration with additional information," Microsoft said in a statement.
"For example, of the approximately 6,000 H-1B visa applications we submitted in the last fiscal year, 80 per cent were to extend or change the status of existing Microsoft employees. These were not to hire new people," it added.
IT industry body NASSCOM in a statement said immigration and skilled talent mobility are "two distinct issues" and should not be viewed through the same lens.
"The US Department of Labor has...announced the temporary suspension of certain IT companies, including Indian technology companies operating in the US, from filing new applications under the Permanent Labor Certification (PERM) programme. While the decision affects a specific immigration pathway, NASSCOM has consistently maintained that immigration and skilled talent mobility are two distinct issues and should not be viewed through the same lens," the association said.
US is the biggest market for the USD 300 billion Indian IT industry. The latest development is expected to add uncertainty for tech outsourcers that rely on the cross-border movement of skilled professionals, according to PTI. The move comes amid challenges for Indian IT companies in the US, including tighter scrutiny of work visas and higher costs for H-1B applicants.
NASSCOM noted that Indian IT companies have reduced their dependence on H-1B visas and have focused on local hiring.
"However, over the past few years, Indian technology companies have significantly reduced their dependence on H-1B visas, while steadily expanding local hiring and building a strong domestic workforce in the US," it said.
"Consequently, the number of employees transitioning from H-1B visas to permanent residency through the PERM process is also relatively limited," it added.
The Trump administration on Thursday announced the suspension of a key employment-based green card process for eight major technology and outsourcing companies, including India's Infosys, TCS, Wipro and HCL, as Vice-President JD Vance announced a sweeping crackdown on alleged visa fraud.
The action also covers Cognizant, Capgemini, Microsoft and Adobe. It prevents the companies from filing new permanent labour certification applications and halts the processing of pending applications under the programme.
US Labour Secretary Keith Sonderling announced the decision at a press conference led by Vance, saying the action followed ongoing criminal and federal investigations.
"I am hereby suspending from the Permanent Labour Certification Programme some of the largest IT outsourcing firms in the world, Cognizant, Infosys, Tata (TCS), Wipro, HCL, and Capgemini," Labour Secretary Keith Sonderling said, adding the Department of Labour is also suspending Microsoft and Adobe from the programme due to multiple active federal investigations.
The Permanent Labour Certification programme, commonly known as PERM, is a key step for many employers seeking employment-based permanent residence for foreign workers.
Sonderling said the companies named in the action had collectively requested nearly three million foreign workers since 2009. According to figures he presented, they had received more than 2.3 lakh H-1B visa approvals and over 1 lakh permanent labour certifications.
Vance accused employers of using the H-1B programme to replace American workers with lower-paid foreign employees.
"The H-1B visa program is meant to allow companies to bring in really the best of the best from outside the United States of America for positions that are completely impossible to fill with American workers," he said.
(With inputs from PTI)
