TCS unaffected by US green card suspension

TCS Response to US Green Card Suspension

Tata Consultancy Services (TCS) has responded to the US government's suspension of its access to the Permanent Labor Certification (PERM) programme, stating that it will not affect its workforce strategy or client engagements. The company made this statement in a filing to the BSE, noting that its workforce strategy in the US is anchored in hiring local talent, supported by a robust campus recruitment model. As stated by TCS, "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."

US Suspension of PERM Programme

The US Department of Labor suspended eight technology-services companies, including TCS, from the PERM programme, citing multiple active federal investigations and alleged programme abuse. The suspension means that the department will neither accept new PERM applications from these companies nor process those already pending. The affected companies include Microsoft, Adobe, Cognizant, Infosys, TCS, Wipro, HCL Technologies, and Capgemini. According to Labor Secretary Keith Sonderling, "I am hereby suspending from the Permanent Labour Certification Programme some of the largest IT outsourcing firms in the world, Cognizant, Infosys, Tata, Wipro, HCL, and Capgemini."

TCS Workforce Strategy

TCS has built a significant local workforce across 31 offices and delivery centres in the US and plans to hire an additional 15,000 people over the next five years. The company's workforce strategy is focused on hiring local talent, supported by a robust campus recruitment model. TCS had filed only a single-digit number of PERM applications over the past two years, which is why the suspension is not expected to have a significant impact on its operations or workforce plans. As TCS stated, "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."

Detail	Information
Number of PERM applications filed by TCS in the last two years	Single digits
Number of offices and delivery centres in the US	31
Number of additional people to be hired in the US over the next five years	15,000

Industry Reaction

The industry body Nasscom has stated that immigration and skilled talent mobility are two distinct issues that should not be viewed through the same lens. Nasscom has consistently maintained that the H-1B visa programme has historically played an important role in addressing short-term skill gaps in the US and will continue to be used to address short-term talent gaps. According to Nasscom, "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."

Impact on Indian IT Companies

The US suspension of the PERM programme is seen as a setback for Indian professionals working in the US, especially those employed by major IT services companies. The suspension can complicate their path to permanent residency. However, TCS has stated that it does not expect the suspension to have a significant impact on its workforce strategy or customer engagements.

Frequently Asked Questions

What is the PERM programme?

The PERM programme is the first step in most employment-based green card applications, which allows companies to sponsor eligible H-1B visa holders for US permanent residency.

Why was the PERM programme suspended for TCS and other companies?

The US Department of Labor suspended the PERM programme for TCS and other companies, citing multiple active federal investigations and alleged programme abuse.

How will the suspension of the PERM programme affect TCS's workforce strategy?

TCS has stated that the suspension will not affect its workforce strategy or client engagements, as the company has a significant local workforce and plans to hire additional people in the US over the next five years.

The suspension of the PERM programme by the US Department of Labor is a significant development that affects several technology-services companies, including TCS. While the suspension is seen as a setback for Indian professionals working in the US, TCS has stated that it does not expect the suspension to have a significant impact on its workforce strategy or customer engagements. The company's focus on hiring local talent and its significant local workforce in the US are expected to mitigate the effects of the suspension. As the situation develops, it remains to be seen how the suspension will affect the US immigration landscape and the Indian IT industry.