The US Labour Department suspended Tata Consultancy Services from the permanent labour certification programme on Thursday. TCS said this action will not affect its workforce strategy or client engagements. The company plans to hire 15,000 workers in the US over the next five years, focusing on local talent and campus recruitment.
Synopsis
Tata Consultancy Services has been suspended from the permanent labour certification programme by the US Labour Department. This suspension affects eight major technology companies including TCS, Infosys, and Microsoft. TCS stated that this will not impact its hiring strategy or engagements with clients. The company intends to hire 15,000 workers in the US over the next five years.
Tata Consultancy Services, India's leading IT services company, said on Friday it does not expect its suspension from the permanent labour certification programme to impact either workforce strategy or customer engagements, adding that it would comply with any directive from the US Department of Labor.
The US Labour Department on Thursday suspended eight major technology companies, including Indian software services exporters Tata Consultancy Services (TCS), Infosys, Wipro, HCLTech, and Cognizant from the so-called permanent labour certification programme (PERM).
This effectively bars these firms from filing new applications or processing pending applications under the employment-based green card programme-after they have sponsored foreign workers on work visas such as H-1B. Capgemini, Microsoft and Adobe have also been suspended from the programme.
"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," TCS said in a filing to exchanges.
TCS added it was standing by its intention to hire 15,000 workers in the United States over the next five years, to improve its local workforce. The company added its PERM applications were in single digits in the last two years.
Earlier, Microsoft reacted to the Donald Trump administration's immigration crackdown, post facing suspension from the Permanent Labour Certification Program, while the US President honoured the tech company's CEO Satya Nadella with the National Medal of Technology and Innovation.
Microsoft highlighted that a huge majority of its US employees were Americans and stressed on its belief in the "strength and talent of the American workforce."
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