Tata Consultancy Services (TCS), India’s IT services company, has said that the US government’s suspension of its participation in the Permanent Labour Certification (PERM) programme is not expected to affect its workforce strategy or customer engagements.
In a filing to the stock exchanges on Friday, the company said its PERM applications had been in single digits over the past two years, limiting the expected impact of the US government’s decision. TCS also reaffirmed its commitment to complying with directives issued by the US Department of Labor.
The US government announced on October 8 that it was suspending eight major technology companies from the PERM programme, which enables employers to sponsor eligible foreign workers for permanent residency, commonly known as a green card. The companies affected include TCS, Infosys, Wipro, HCLTech, Cognizant, Capgemini, Microsoft and Adobe. The administration has cited alleged misuse of employment-based immigration programmes and concerns about protecting American jobs.
In its exchange filing, TCS emphasised that its US workforce strategy is anchored in recruiting local talent, supported by campus hiring and a nationwide presence across 31 offices and delivery centres.
"We have noted the announcement by the US Government on the Permanent Labor Certification Program (PERM) and TCS will comply with any directive from the Department of Labor," the company said.
LOCAL HIRING REMAINS
Emphasising its focus on local recruitment, TCS said its US workforce strategy was built around hiring domestic talent and campus recruitment.
"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 centers throughout the country," it said.
The IT major also reiterated its US hiring target, saying it planned to expand its local workforce over the next five years.
"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," the company said.
TCS added that the suspension was unlikely to disrupt its operations, citing the limited number of PERM applications filed in recent 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 said.
