US PERM suspension: Why TCS expects little impact, and what it means for Indian IT workers

Tata Consultancy Services (TCS) has said that the US government's suspension of its applications under the Permanent Labour Certification (PERM) programme will have little effect on its business, as it filed only a handful of applications over the past two years. The order could, however, delay permanent residency for Indian IT professionals employed by TCS and seven other technology companies.

PERM applications from eight tech firms suspended

The US Department of Labour has stopped accepting new PERM applications from Microsoft, TCS, Wipro, Infosys, Cognizant, HCL, Capgemini and Adobe. Applications already pending with the department will not be processed either.

Also Read: US suspends Cognizant, Infosys, Tata and Wipro from Green Card programme

"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," TCS said in a statement.

The company said it would comply with the department's directions and continue hiring locally in the US. TCS has offices and delivery centres at 31 locations across the country. It plans to hire another 15,000 people in the US over the next five years.

Indian employees could face green card delays

For Indian employees waiting for employer-sponsored green cards, the suspension could mean a longer wait. Existing H-1B visas remain valid, but workers whose applications depend on PERM may face delays before they can move towards permanent residency, reported NDTV.

Also Read: Return to home country and apply: Proposed rule for US Green Card causes anxiety

PERM is a labour certification process that employers generally need to complete before sponsoring foreign workers for green cards. They must show that qualified American workers are not available for the job and that hiring a foreign employee would not adversely affect the wages or working conditions of similarly employed US workers.

Many Indian IT professionals work in the US on H-1B visas, which generally allow skilled foreign workers to stay for up to six years. Some later seek green cards through their employers. With PERM applications on hold at the eight companies, those employees may have to wait longer for their cases to progress, NDTV reported.

US officials cite foreign-worker hiring figures

US Labour Secretary Keith Sonderling announced the suspension and said the department would stop processing pending applications from these companies. He said the companies had sought nearly three million foreign workers since 2009, received more than 230,000 H-1B approvals and secured over 100,000 labour certifications.

Also Read: DHS says green card applicants will not automatically be required to leave US

Vice President JD Vance accused companies of relying on foreign workers while American employees lost their jobs. He singled out Microsoft, alleging that it laid off 6,000 American workers in 2025 while receiving approval for more than 6,000 H-1B workers.

Vance also said Microsoft had filed 3,682 PERM applications, including nearly 1,000 linked to positions held by workers who had been laid off.

"Our message to Microsoft is: You're a great American company, but you've got to hire great American workers," Vance said.

Indians dominate H-1B approvals

Indian nationals account for more than 70 per cent of approved H-1B petitions each year, according to the report. The effect of the suspension on individual workers will depend on the status of their applications and how long the restrictions remain in force.

The decision comes as the Trump administration increases scrutiny of foreign-worker programmes. Its separate plan to impose a one-time $100,000 fee on new H-1B petitions has been blocked by federal court orders.