Tata Consultancy Services (TCS) has said the United States government’s suspension of its participation in the Permanent Labor Certification (PERM) programme is unlikely to affect its hiring strategy or customer engagements. The Indian IT services major said its applications under the programme were in the single digits over the past two years, limiting the immediate operational impact of the decision.
The company also reiterated its plan to hire an additional 15,000 employees in the United States over the next five years. TCS said its workforce strategy is centred on recruiting local talent and conducting campus hiring, as Washington increases scrutiny of employment-based immigration programmes and the use of foreign workers by technology companies.
TCS Says PERM Suspension Will Not Affect Hiring Plans
TCS issued its response on October 9, a day after the US Department of Labor announced the suspension of several major technology companies from the PERM programme. The company said it had taken note of the government’s announcement and would comply with any directives issued by the department.
TCS stated that its PERM applications had remained in the single digits over the preceding two years. Based on this limited use, the company does not expect the suspension to materially affect its workforce strategy or engagements with customers.
The announcement is significant because TCS is among the largest Indian technology services providers operating in the US. Its business depends on a combination of local employees, international talent, offshore delivery centres and cross-border project teams.
However, the company’s statement does not mean that the US decision has no implications for every employee. Workers whose employers were sponsoring them through the affected permanent-residency process could face delays or uncertainty while the suspension remains in place.
TCS Plans to Hire 15,000 Employees in the US
TCS reiterated its intention to add 15,000 employees to its US workforce over the next five years. The company said local recruitment and campus hiring form the foundation of its American workforce strategy.
It also highlighted its presence across 31 offices and delivery centres in the country, reflecting its established operating footprint in the US market.
| Key detail | TCS position |
|---|---|
| PERM applications | Single digits over the past two years |
| Planned US hiring | 15,000 additional employees over five years |
| US operating presence | 31 offices and delivery centres |
| Expected impact of suspension | No material impact anticipated on workforce strategy or customer engagements |
| Recruitment approach | Local hiring and campus recruitment |
The planned recruitment suggests that TCS intends to continue expanding its US presence despite the policy change. Hiring locally can help companies respond to client demand while reducing dependence on certain international mobility and immigration pathways.
The announcement does not, however, establish how the new positions will be distributed across roles, locations or business units. TCS has not indicated that the suspension will automatically change its overall hiring target.
What Is the PERM Programme?
The Permanent Labor Certification programme, commonly known as PERM, is a key step in the US employment-based green card process for many workers sponsored by employers.
In a typical PERM case, an employer must demonstrate that it has met applicable recruitment requirements and that hiring the foreign worker will not adversely affect similarly employed US workers. Following labor certification, the employer may proceed to subsequent stages of the employment-based immigration process, subject to the relevant requirements.
PERM is not the same as an H-1B visa. The H-1B programme allows eligible US employers to employ foreign professionals temporarily in specialty occupations. PERM, by contrast, is associated with the process for obtaining permanent residence through employer sponsorship.
This distinction matters because suspension from PERM does not automatically cancel the H-1B status of employees working for an affected company. Nevertheless, it can interrupt or complicate the green card pathway for workers whose cases depend on employer-sponsored labor certification.
Why Has the US Suspended Major IT Companies?
The US Department of Labor announced that it would stop accepting new PERM applications involving the affected companies and would not process pending applications covered by the suspension.
The companies named in reports include TCS, Infosys, Wipro, HCLTech, Cognizant, Capgemini, Microsoft and Adobe. US officials have alleged misuse of employment-based immigration programmes and argued that such practices can disadvantage American workers. These are allegations made by the administration and should not be treated as proven findings against every company named.
The action forms part of a broader push by the administration to scrutinise foreign-worker hiring and prioritise employment opportunities for US workers. The policy has placed immigration practices at major technology companies under renewed attention.
For Indian IT services firms, the immediate effects could differ from company to company, depending on the number of affected applications, the roles involved and the status of employees seeking permanent residency.
TCS’s disclosure that its PERM applications were in the single digits over two years indicates limited direct exposure through this particular route. It does not necessarily measure the company’s total use of H-1B visas or other immigration categories.
How Could the Decision Affect Indian IT Companies?
Indian IT companies have increasingly expanded local hiring in the US while continuing to rely on global delivery models. The suspension could encourage affected firms to review their recruitment plans, employee mobility arrangements and immigration compliance procedures.
Potential implications include:
- Greater emphasis on local hiring: Companies may expand recruitment among US graduates and experienced professionals.
- Uncertainty for sponsored employees: Workers with pending PERM applications may face delays or need to discuss alternative options with their employers and immigration advisers.
- Higher staffing costs: Hiring locally can involve different salary and recruitment costs, depending on the position and location.
- Closer compliance scrutiny: Companies may review documentation, recruitment processes and immigration sponsorship practices.
- Possible operational adjustments: Some projects may require changes to staffing or location arrangements, although the impact will vary by company.
These are potential effects rather than confirmed outcomes for every firm. TCS has explicitly said it does not expect the suspension to materially affect its customer engagements or workforce strategy.
H-1B Visas and Green Cards Remain Separate Issues
The announcement has also renewed debate about the role of H-1B workers in the US technology sector. H-1B visas allow companies to recruit eligible foreign professionals for temporary employment, while employer-sponsored green card processes provide a potential route to permanent residency.
Industry body Nasscom has argued that skilled-worker mobility and permanent immigration are distinct issues. It has also said Indian technology companies have reduced their dependence on H-1B visas over recent years while increasing local hiring in the US.
The distinction is important for interpreting the suspension. A restriction on PERM applications can affect employees seeking permanent residency without automatically preventing a company from recruiting US workers or cancelling existing H-1B status.
The longer-term impact will depend on the duration and scope of the suspension, any further government directions and how affected companies adjust their workforce strategies.
The Bigger Picture
The PERM suspension highlights the growing importance of immigration policy in the operating environment for global technology services companies. Indian IT firms have traditionally combined domestic technology talent with overseas client-facing teams, making the rules governing international mobility an important consideration for staffing and delivery.
TCS’s response suggests that its limited recent use of PERM and its emphasis on US-based recruitment could help it manage the immediate disruption. However, the wider policy shift creates uncertainty for employees seeking permanent residency and for companies that use employer sponsorship as part of long-term talent planning.
Looking Ahead
TCS has reaffirmed its five-year plan to recruit 15,000 additional employees in the US and said it will comply with the Department of Labor’s directions. Investors and employees will be watching for further details about the suspension and whether it changes recruitment costs, staffing arrangements or immigration procedures across the company’s US operations.
For affected workers, the key issue is whether their permanent-residency applications can proceed under the revised circumstances. The suspension does not automatically cancel H-1B status, but employees with pending green card cases should seek case-specific guidance from their employer and qualified immigration counsel rather than assume that every application will be treated identically.
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