TCS says US green card programme suspension will not impact strategy
Tata Consultancy Services stated that the US Department of Labor's green card program suspension will not disrupt its workforce strategy or client engagements.
- Headline: TCS says US green card programme suspension will not impact strategy
- Dispatch Summary: Tata Consultancy Services stated that the US Department of Labor's green card program suspension will not disrupt its workforce strategy or client engagements.
- Verification: Corroborated across independent reporting outlets with primary sources and real-time wire transmissions.
Why did TCS say the US green card suspension will not change its strategy?
Tata Consultancy Services (TCS), India's largest IT services exporter, stated on Friday (October 9, 2026) that the US government's suspension of its access to the Permanent Labor Certification (PERM) programme will not affect its workforce strategy or client engagements. The company's response follows a decision on Thursday (October 8, 2026) by the US Department of Labor to suspend eight technology-services companies from the PERM programme, citing multiple active federal investigations. Vice President JD Vance and Labor Secretary Keith Sonderling announced the decision.
In an official filing to the BSE and subsequent statements, TCS emphasized that its reliance on the halted federal pathway is minimal. 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 stated. The company also noted, We 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.
That leaves the tech giant in a defensive posture, yet insulated by its own past hiring shifts. By pointing to single-digit filing volumes, TCS is betting that regulators will view its day-to-day operations as untethered from the specific immigration pathways now under federal scrutiny.
How do the eight suspended companies compare in scale?
The PERM suspension targets a cross-section of major multinational technology firms and outsourcing providers. According to statements by Labor Secretary Keith Sonderling on Thursday (October 8, 2026), just the group of eight suspended companies have requested almost three million foreign workers since 2009. Sonderling stated that these firms have received over 230,000 H-1B visa approvals and over 100,000 permanent labour certifications over that period.
The Department of Labor's directive means authorities will neither accept new PERM applications from these firms nor process applications that are already pending. The following table details the companies impacted by the October 8, 2026 order and the context provided by federal officials and corporate responses:
| Company | Sector / Role | Stated Position or Federal Finding |
|---|---|---|
| Tata Consultancy Services (TCS) | IT Services / Outsourcing | Single-digit PERM applications in past two years; local hiring focus. |
| Microsoft | Technology / Software | Targeted over active federal investigations; stated 80 percent of 6,000 H-1B applications last fiscal year were for status extensions. |
| Adobe | Technology / Software | Targeted over active federal investigations alongside Microsoft. |
| Cognizant, Infosys, Wipro, HCL Technologies, Capgemini | IT Services / Outsourcing | Suspended from PERM under directive citing past visa approvals and certifications. |
That snapshot reveals a widening chasm between software product firms like Microsoft and traditional outsourcing giants like TCS. While software houses lean heavily on recurring H-1B extensions for established engineers, India-based exporters have spent recent years steadily pruning their reliance on green card sponsorships in favor of domestic US campus recruiting.
What does Nasscom say about immigration versus talent mobility?
Industry body Nasscom intervened in the debate following the Washington announcement, arguing that immigration rules and skilled talent mobility are distinct matters. According to Nasscom, the H-1B visa programme has historically addressed short-term skill gaps in the US and will continue to serve that function. The association stated that Indian technology companies have significantly reduced their dependence on H-1B visas over the past few years while expanding local hiring.
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,
Nasscom said in its statement. The trade body added that because these firms partner with the majority of US Fortune 500 companies and generate local jobs, the volume of employees transitioning from H-1B visas to permanent residency via PERM is relatively limited.
That perspective attempts to decouple the current enforcement action from broader commercial operations. Yet it leaves unaddressed how tech firms will manage specialized engineering talent if temporary work visas face parallel tightening.
Why is the US administration cracking down on H-1B and PERM channels now?
The enforcement sweep reflects a coordinated federal effort by Vice President JD Vance and Labor Secretary Keith Sonderling. Officials at Thursday's briefing contended that current practices have shut out American workers from the domestic job market. Vice President Vance characterized foreign workers hired on H-1B visas as foreign indentured servants
and labeled the companies utilizing the system as visa mills.
Vance singled out Microsoft during the briefing, asserting, There has been no company in the United States, unfortunately, that has abused this system more than Microsoft.
Alongside the PERM freeze for the eight corporations, Vance announced an investigation into the J-1 visa programme for research scholars utilized by nine major universities, including Yale, Harvard, Stanford, and Caltech.
That rhetoric signals a profound shift in US labor policy towards the technology sector. The administration is no longer merely auditing compliance; it is questioning the foundational utility of corporate sponsorship models that underpin Silicon Valley and major IT delivery hubs.
Can TCS deliver on its local hiring targets despite the regulatory squeeze?
TCS is leaning into a decentralized domestic delivery model to counter cross-border friction. The company stated that its US workforce strategy is anchored in hiring local talent through a robust campus recruitment model. It has built a significant local workforce across 31 offices and delivery centres throughout the country, according to its BSE filing.
To further augment this local presence, TCS reiterated its previously announced plan to hire an additional 15,000 people in the US over the next five years. This local buildup runs parallel to broader financial performance at the firm. During the July-September quarter, TCS reported that net profit rose 15%, revenue crossed the Rs 73,000 crore mark, and AI-related revenue jumped nearly 20% quarter-on-quarter to $3.1 billion from $2.6 billion.
That financial cushion gives TCS immense operational leeway. Watch for whether US clients accelerate contract shifts to domestic delivery centres or seek alternative providers as federal investigations into the remaining suspended firms unfold.
