TCS Responds to US Labor Certification Program Changes
TCS's Commitment to Local Hiring
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New Delhi, Oct 9: Tata Consultancy Services (TCS), the leading IT firm in India, acknowledged the recent announcement from the US Government regarding the Permanent Labor Certification Program (PERM) and expressed its intention to adhere to any guidelines issued by the Department of Labor.
In a filing to the stock exchange, TCS emphasized that its strategy for workforce management in the US is primarily focused on recruiting local talent, supported by a strong campus recruitment initiative.
"We have established a considerable local workforce across 31 offices and delivery centers nationwide. As previously stated, we plan to recruit an additional 15,000 employees in the US over the next five years to enhance our local presence," the company noted.
"Our PERM applications have been minimal over the past two years, so we do not anticipate that the suspension of the program will affect our workforce strategy or client relationships," it added.
This statement follows the announcement by US Labor Secretary Keith Sonderling, who revealed the suspension of six outsourcing firms, including Infosys, Tata, Wipro, HCL, Cognizant, and Capgemini, from the PERM program due to investigations by the Department of Labor's Inspector General.
The suspension halts the acceptance of new PERM applications from these companies and the processing of any pending applications.
Previously, the IT industry association Nasscom indicated that the number of employees moving from H-1B visas to permanent residency through the PERM process is quite limited.
"Historically, the H-1B visa program has been crucial in filling short-term skill shortages in the US. However, in recent years, Indian tech firms have significantly decreased their reliance on H-1B visas while progressively increasing local hiring," Nasscom stated.
In a separate statement, Microsoft reported that the majority of its US workforce consists of American employees. Out of approximately 6,000 H-1B applications submitted in the last fiscal year, 80% were for extending or changing the status of current employees rather than hiring new staff, according to the company.
The remaining applications for new hires were for individuals already legally residing in the US, representing only 1% of its US workforce, the tech giant clarified.