TCS Says US Green Card Programme Suspension Will Not Affect Hiring Strategy

Tata Consultancy Services (TCS) said on Friday that its suspension from a US employment-based green card programme was not expected to affect its workforce strategy or customer engagements, citing limited use of the programme and its focus on hiring locally.

Responding to the US government’s announcement, the company said it would comply with directives from the Department of Labour concerning the Permanent Labour Certification Program, known as PERM.

“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,” TCS said.

The company reiterated its previously announced intention to hire an additional 15,000 people in the United States over the next five years.

“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 added.

NASSCOM POINTS TO INCREASED LOCAL HIRING

Industry body Nasscom said immigration and skilled talent mobility were distinct issues and should not be viewed through the same lens.

It said the Department of Labour’s decision affected a specific immigration pathway, while Indian technology companies had reduced their dependence on H-1B visas, expanded local recruitment and built substantial workforces in the United States.

PERM is a step towards an employment-based green card for eligible foreign workers. Suspension from the programme is distinct from a blanket ban on H-1B visas or a company’s ability to recruit US workers.

US CITES FEDERAL INVESTIGATIONS

US Labour Secretary Keith Sonderling announced the suspension of Cognizant, Infosys, Tata, Wipro, HCL and Capgemini from PERM. The department also suspended Microsoft and Adobe, citing multiple active federal investigations into alleged programme abuse.

Sonderling said the companies had collectively requested almost three million foreign workers since 2009 and received more than 230,000 H-1B visa approvals and over 100,000 permanent labour certifications. He characterised those approvals as jobs taken from American workers.

At the same news conference, Vice President JD Vance accused companies of using foreign workers to undercut American wages and described workers brought into the country on H-1B visas as “indentured servants”.

Vance claimed that H-1B workers earned $20,000 less than American citizens in comparable roles, with the gap rising to $48,000 for those recruited through foreign outsourcing firms.

The announcement followed a Department of Homeland Security proposal to introduce new fees for F-1 students seeking Optional Practical Training. The department said the proposed measure was intended to protect American workers and strengthen the integrity of the immigration system.

With inputs from ANI