By Team INVC | INVC NEWS
Published: October 9, 2026 | 08 : 29 AM IST
MUMBAI, India | October 9, 2026 — A US restriction on an employment-based green card pathway has put Tata Consultancy Services under fresh regulatory scrutiny. Yet the company says its American hiring strategy remains intact—and it still plans to recruit 15,000 additional people over the next five years.
The explanation behind the TCS PERM suspension response lies in how the company builds its workforce. TCS says it increasingly recruits locally, while its applications through the Permanent Labor Certification program remained in single digits over the past two years.
Consequently, the company expects limited operational exposure to the suspension. However, its business assessment does not resolve the uncertainty facing individual employees who need that pathway for permanent residency.
What the US has suspended
On October 8, the Trump administration announced PERM suspensions covering eight technology and IT services companies: TCS, Infosys, Wipro, HCLTech, Cognizant, Capgemini, Microsoft and Adobe.
US Labor Secretary Keith Sonderling said the department would stop accepting new applications and processing pending permanent labor certification applications involving the affected employers.
The administration presented the action as part of its campaign against alleged misuse of employment-based immigration programs and practices it says disadvantage American workers.
Those allegations require clear attribution. The announcement does not, by itself, establish that every named company committed fraud.
Furthermore, the action targets a particular employer-sponsored immigration process. It does not amount to a nationwide suspension of all green cards.
Why TCS expects its hiring strategy to hold
In its response on Friday, TCS identified two reasons for its confidence: local recruitment and limited recent use of PERM.
The company said its American workforce strategy centers on hiring local talent, supported by campus recruitment. It also pointed to its workforce across 31 US offices and delivery centers.
Meanwhile, TCS described its PERM applications over the past two years as “in single digits.” On that basis, it said it did not expect the suspension to affect its workforce strategy or customer engagements.
TCS also said it would comply with Department of Labor directives.
Its position therefore reflects its stated exposure to the program. It does not mean the suspension carries no consequences for any employee.
The 15,000 jobs represent an existing plan
TCS reiterated its intention to hire 15,000 additional people in the United States over five years.
Crucially, the company reaffirmed an earlier commitment. It did not announce 15,000 immediate vacancies in response to the suspension.
The distinction matters for job seekers. A multiyear recruitment target does not provide an application timetable, a list of open positions or a guarantee of immigration sponsorship.
For clients, meanwhile, the relevant issue concerns staffing continuity. TCS says its local recruitment model supports its ability to maintain customer engagements despite the PERM restriction.
What PERM actually does
PERM provides a labor certification step for many employer-sponsored permanent residency cases.
According to the US Department of Labor, employers generally need certification before submitting the associated immigration petition to US Citizenship and Immigration Services.
The process requires the department to determine that sufficient qualified, willing and available US workers do not exist for the specific opportunity. It must also determine that employing the foreign worker would not harm comparable American workers’ wages or working conditions.
Employers must obtain a prevailing wage determination and complete applicable recruitment requirements.
Therefore, PERM certification and a green card serve different functions. Certification supports the immigration process; it does not itself grant permanent residency.
What the restriction means for workers
The suspension can interrupt new or pending PERM cases involving the named employers. However, it does not automatically cancel existing H-1B status or previously issued green cards.
| Situation | What this announcement means |
| New PERM filing through an affected employer | The department says it will not accept the application. |
| Pending PERM application involving an affected employer | The department says it will halt processing. |
| Existing H-1B status | The PERM action alone does not cancel that status. |
| Previously issued green card | The announcement does not itself revoke it. |
| Local recruitment | Hiring people who already have the necessary work authorization does not inherently require PERM. |
For employees, identifying the stage of their case matters more than interpreting a broad “green card ban” headline.
Why Nasscom separates immigration from talent mobility
Industry body Nasscom said immigration and skilled talent mobility represent distinct issues.
It argued that H-1B visas help address temporary skill shortages, while PERM concerns a route toward permanent residency. Nasscom also said Indian technology companies have reduced their reliance on H-1B visas and expanded American recruitment.
Nevertheless, a company’s ability to staff projects and an employee’s ability to secure permanent residency remain separate concerns.
TCS’s response addresses the first: it expects its hiring and customer work to continue. The suspension leaves the second uncertain for workers whose cases depend on the affected process.
