PERM suspension won't affect workforce strategy, customer engagements: TCS

The IT services major said its PERM applications were in single digits over the past two years and reiterated plans to hire 15,000 people in the US over five years

Tata Consultancy Services (TCS) said the US government’s decision to suspend the permanent labour certification (PERM) programme for top Indian IT services companies, including itself, would not affect its workforce strategy or customer engagements.

 

“Our PERM applications were in single digits in the last two years and hence we do not expect the suspension of the programme to impact our workforce strategy and customer engagements,” the company said in a statement on Friday.

 

TCS, India’s largest IT services provider, also said its 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. 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,” it added.

 

 

Indian companies have been trying to reduce their dependence on H-1B visas and the PERM programme over the past few years, as the US government under President Donald Trump has alleged that technology companies use these routes to bring in cheaper labour to displace local workers.

 

Indian companies have stepped up hiring in the US by engaging with colleges in the country. While local hiring numbers have risen, the gap between supply and demand remains an issue.

 

The US Department of Labor said on Thursday that it would suspend companies such as Microsoft, Adobe, Infosys, Tata, Cognizant, HCLTech and Capgemini from the PERM programme. This is one of the latest moves by the Trump administration to crack down on legal and illegal immigration.

 

Nasscom, the IT services industry body, pushed back against the move to temporarily bar certain IT companies, including Indian technology firms, from filing new applications under the PERM programme. It said immigration and skilled talent mobility are separate issues that should not be viewed through the same lens.

 

Nasscom also said the number of employees transitioning from H-1B visas to permanent residency through the PERM process is relatively limited.

 

“Indian technology companies operate across more than 80 countries and have consistently demonstrated their commitment to complying with local laws and regulatory requirements. We are confident that they will continue to adhere to applicable regulations in the US as well,” Nasscom said.