TCS unfazed by US PERM green card program suspension

The Trump administration has suspended eight major technology companies, including India's largest IT exporter Tata Consultancy Services (TCS) and software giant Microsoft, from the US permanent labour certification (PERM) program.

The decision, announced on Thursday by US Labor Secretary Keith Sonderling, effectively blocks these companies from filing new applications or processing pending ones under the employment-based green card program.

On Friday, TCS moved quickly to reassure investors and clients, stating that the suspension would have no material impact on its workforce strategy or US business. The company explained that its reliance on the program is minimal, having filed only "single-digit" PERM applications over the last two years.

Why TCS says the PERM freeze will not hit its business

In a regulatory filing on Friday, TCS stated that its US operations are built on recruiting local talent rather than relying on sponsoring foreign workers for permanent residency.

"Our workforce strategy in the US is anchored in hiring local talent, supported by a robust campus recruitment model," the company said. TCS already operates 31 offices and delivery centres across the country and reaffirmed its existing plan to hire an additional 15,000 workers in the US over the next five years.

Microsoft also sought to downplay the impact of the suspension. The company, whose chief executive Satya Nadella was recently awarded the National Medal of Technology and Innovation by President Donald Trump, emphasized that the vast majority of its US employees are American citizens.

What is the PERM program and who is affected?

The PERM program is a mandatory first step for employers seeking to sponsor foreign workers on temporary visas, such as H-1B visas, for permanent residency in the US. Under the rules, employers must prove to the Department of Labor that there are no qualified, willing, and available American workers to fill the roles, and that hiring foreign nationals will not drive down local wages.

The suspension list targets some of the largest outsourcing and technology companies operating in the US. Along with TCS and Microsoft, the Department of Labor suspended:

• Infosys
• Wipro
• HCLTech
• Cognizant
• Capgemini
• Adobe

Standing alongside Vice President JD Vance on Thursday, Sonderling accused the firms of abusing the visa system to bypass American workers in favour of cheaper foreign labour.

In tandem with the corporate suspensions, the administration announced investigations into nine major universities, including Harvard, Yale, and Stanford, over allegations that they are using international students and foreign researchers to lower labour costs.

The political clash over the immigration crackdown

The suspensions have immediately ignited a political debate over the administration's immigration policies.

Democratic Representative Pramila Jayapal, whose Washington state district includes Microsoft's headquarters, criticized the move as an assault on legal immigration pathways. Jayapal argued that the PERM program already contains rigorous safeguards to protect domestic workers. "You don't fix a broken immigration system by taking a hammer to legal immigration," she said.

Vice President Vance quickly hit back at the criticism, accusing Jayapal of defending corporate interests. "‘Socialism’ apparently means fighting like hell to ensure megacorporations have a never-ending flow of cheap labour," Vance wrote in response.