TCS: US green card programme suspension won't impact workforce strategy

The countrys largest IT services company Tata Consultancy Services TCS on Friday said it does not expect its suspension from the Permanent Labor Certification Programme PERM to affect its workforce strategy or customer engagements according to news agency PTIThe company said its applications under the green card programme were in single digits in the last two yearsOn Thursday US suspended eight IT firms including TCS Infosys Wipro Cognizant and Microsoft from PERM to apply for green cards for foreign workers It contended that the practice has shut out Americans from the job marketOur 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 TCS said in a statementTCS said it will comply with any directive from the US Labor Department and highlighted its workforce strategy is firmly anchored in hiring local talentWe 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 Our workforce strategy in the US is anchored in hiring local talent supported by a robust campus recruitment model it saidThe Tata Group company added that it has built a significant local workforce across 31 offices and delivery centres throughout the USEarlier TCS had said it intends to hire an additional 15000 people in the US over the next five years to expand its local workforceMicrosoft says majority work force AmericansMicrosoft said a majority of its employees were Americans and said that 80 per cent of the 6000 H1B visa applications it had submitted last fiscal year were to extend or change the status of existing employees and not for recruiting new peopleWe believe in the strength and talent of the American workforce That is why the vast majority of Microsoft employees in the US are Americans We look forward to providing the administration with additional information Microsoft said in a statementFor example of the approximately 6000 H1B visa applications we submitted in the last fiscal year 80 per cent were to extend or change the status of existing Microsoft employees These were not to hire new people it addedNASSCOM says immigration and skilled talent mobility are distinctIT industry body NASSCOM in a statement said immigration and skilled talent mobility are two distinct issues and should not be viewed through the same lensThe US Department of Labor hasannounced the temporary suspension of certain IT companies including Indian technology companies operating in the US from filing new applications under the Permanent Labor Certification PERM programme While the decision affects a specific immigration pathway NASSCOM has consistently maintained that immigration and skilled talent mobility are two distinct issues and should not be viewed through the same lens the association saidUS is the biggest market for the USD 300 billion Indian IT industry The latest development is expected to add uncertainty for tech outsourcers that rely on the crossborder movement of skilled professionals according to PTI The move comes amid challenges for Indian IT companies in the US including tighter scrutiny of work visas and higher costs for H1B applicantsNASSCOM noted that Indian IT companies have reduced their dependence on H1B visas and have focused on local hiringHowever over the past few years Indian technology companies have significantly reduced their dependence on H1B visas while steadily expanding local hiring and building a strong domestic workforce in the US it saidConsequently the number of employees transitioning from H1B visas to permanent residency through the PERM process is also relatively limited it addedUS suspends IT companies from filing PERM applicationsThe Trump administration on Thursday announced the suspension of a key employmentbased green card process for eight major technology and outsourcing companies including Indias Infosys TCS Wipro and HCL as VicePresident JD Vance announced a sweeping crackdown on alleged visa fraudThe action also covers Cognizant Capgemini Microsoft and Adobe It prevents the companies from filing new permanent labour certification applications and halts the processing of pending applications under the programmeUS Labour Secretary Keith Sonderling announced the decision at a press conference led by Vance saying the action followed ongoing criminal and federal investigationsI am hereby suspending from the Permanent Labour Certification Programme some of the largest IT outsourcing firms in the world Cognizant Infosys Tata TCS Wipro HCL and Capgemini Labour Secretary Keith Sonderling said adding the Department of Labour is also suspending Microsoft and Adobe from the programme due to multiple active federal investigationsThe Permanent Labour Certification programme commonly known as PERM is a key step for many employers seeking employmentbased permanent residence for foreign workersSonderling said the companies named in the action had collectively requested nearly three million foreign workers since 2009 According to figures he presented they had received more than 23 lakh H1B visa approvals and over 1 lakh permanent labour certificationsVance accused employers of using the H1B programme to replace American workers with lowerpaid foreign employeesThe H1B visa program is meant to allow companies to bring in really the best of the best from outside the United States of America for positions that are completely impossible to fill with American workers he saidWith inputs from PTI