TCS Says US Green Card Restrictions Will Not Affect Workforce Strategy, Plans 15,000 New Hires

New Delhi — Tata Consultancy Services (TCS), India’s largest IT services company, said Friday that it will comply with U.S. government directives restricting its participation in a key employment-based green card program but does not expect the decision to affect its workforce strategy or customer operations.

In a regulatory filing, TCS acknowledged the Trump administration’s announcement concerning the Permanent Labor Certification (PERM) program and said it would follow any instructions issued by the U.S. Department of Labor.

The company emphasized that its U.S. workforce strategy is primarily based on recruiting American employees through an established campus hiring program.

“We have built a significant local workforce across 31 offices and delivery centers 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,” TCS said.

The company also indicated that its limited use of the PERM program would minimize the impact of the administration’s restrictions.

“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,” it said.

The statement follows U.S. Labor Secretary Keith Sonderling’s announcement that six major IT outsourcing companies had been suspended from participating in the PERM program following investigations by the Department of Labor’s Office of Inspector General.

The affected companies include India’s Infosys, TCS, Wipro and HCL, along with Cognizant and Capgemini.

The restrictions prevent the companies from submitting new PERM applications and suspend the processing of pending applications.

The PERM program allows U.S. employers to obtain labor certification as part of the process of sponsoring foreign professionals for employment-based permanent residency.

Meanwhile, Indian technology industry association Nasscom said relatively few employees transition from H-1B visas to permanent residency through the PERM process.

“The H-1B visa programme has historically played an important role in addressing short-term skill gaps in the US… However, over the past few years, Indian technology companies have significantly reduced their dependence on H-1B visas, while steadily expanding local hiring,” Nasscom said.

The association emphasized that Indian IT companies have increasingly focused on recruiting local employees in the United States, reducing their reliance on foreign worker visa programs.

Separately, Microsoft defended its immigration practices, saying the vast majority of its American workforce consists of U.S. employees.

The company said approximately 80% of the 6,000 H-1B applications it submitted during the last fiscal year involved extensions or changes in immigration status for existing employees rather than new hires.

Microsoft added that its remaining applications involved individuals already legally residing in the United States and represented only about 1% of its American workforce.

The administration’s decision comes amid increased scrutiny of employment-based immigration programs and their use by major technology companies operating in the United States. (Source: IANS)