Tata Consultancy Services (TCS) plans to recruit an additional 15,000 employees in the United States over the next five years, reaffirming its local hiring strategy despite the suspension of its access to the Permanent Labour Certification (PERM) programme.
The company said the restriction was unlikely to affect its workforce expansion plans or client engagements, noting that its PERM applications had remained in single digits over the past two years.
The US Department of Labour has suspended eight technology companies, including TCS, Infosys, Wipro, Cognizant, HCL, Capgemini, Microsoft and Adobe, from filing new applications or processing pending applications under the programme. The action comes amid increased scrutiny of alleged misuse of foreign worker programmes.
TCS to Continue Local Recruitment in the US
TCS said it would comply with directives issued by the US Department of Labour. The company’s workforce strategy in the country focuses on recruiting local talent, including through campus hiring initiatives.
TCS has established a presence across 31 offices and delivery centres in the US. Its planned recruitment of 15,000 additional employees over five years signals its intention to continue expanding its local workforce despite the restrictions affecting its access to the PERM process.
The company’s position is that the suspension should have a limited impact on its operations because its recent use of the programme has been minimal.
What the PERM Suspension Means for Technology Companies
The PERM programme is a key step in the US employment-based permanent residency process for many foreign workers. Employers generally use the process to demonstrate that qualified and available US workers are not being displaced before sponsoring an eligible employee for a green card.
The suspension restricts the affected companies’ ability to file new PERM applications or process pending applications, subject to the scope and terms of the government action.
However, the restriction does not automatically prohibit these companies from employing workers on H-1B visas. The PERM process and the H-1B temporary work visa programme serve different purposes.
Nasscom Highlights the Importance of Skilled Talent Mobility
Industry body Nasscom has argued that immigration policy and the movement of skilled professionals should be considered separately. It has also highlighted the efforts of Indian technology companies to increase local recruitment in the US and reduce their dependence on H-1B workers.
According to the industry association, the number of employees moving from H-1B status to permanent residency through the PERM process has been relatively limited.
The debate comes as US authorities increase scrutiny of foreign worker programmes and employers face higher costs associated with certain H-1B applications. While the administration has raised concerns about the potential displacement of American workers, technology industry representatives have emphasised the importance of international talent in meeting specialised skill requirements.
Implications for Workforce Planning
For HR leaders in the technology sector, the development highlights the growing importance of local talent acquisition, campus recruitment and long-term workforce planning.
Companies operating in the US may need to review their recruitment pipelines, immigration processes and talent mobility strategies to account for regulatory changes. Expanding local hiring can help organisations build a sustainable workforce, although the availability of specialised skills and the cost of recruitment will remain important considerations.
TCS’s planned recruitment underscores its stated commitment to expanding its US workforce while adapting to restrictions affecting its access to the permanent residency sponsorship process.
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