Infosys Unfazed by US PERM Pause

IT major Infosys has said that it does not expect a material impact from the US government's suspension of Permanent Labor Certification (PERM) applications.

The statement came after the US government said last week it was suspending some major global technology and IT firms, including Infosys, from the PERM green card programme, which allows skilled foreign workers to obtain permanent residency in the US through their employment.

“Infosys is aware of the decision announced by the United States Department of Labor concerning the suspension of new and pending applications by certain companies, including Infosys, under the Permanent Labor Certification (“PERM”) program. We welcome the opportunity to work with the Department of Labor and related government agencies to answer any questions they may have,” the company said in an exchange filing.

“We do not anticipate the announcement of such suspension to have a material impact on the organisation. The company will make further disclosures, if required, in accordance with applicable regulatory standards. Infosys has invested in building a strong local workforce and technology and innovation hubs in the United States,” it added.

Infosys said it remains committed to its employees, clients, and communities across the United States and to complying with all applicable laws and regulations.

US Labour Secretary Keith Sonderling had announced the suspensions as the Trump administration stepped up its crackdown on alleged visa fraud and employment practices it says disadvantage American workers.

Tata Consultancy Services (TCS) -- India's largest IT firm -- said on Friday that it noted the announcement by the US Government on the PERM and will comply with any directive from the Department of Labor.

In an exchange filing, TCS said its workforce strategy in the US is anchored in hiring local talent because of a robust campus recruitment model.

"We have built a significant local workforce across 31 offices and delivery centers throughout the country. As we had announced earlier, we intend to hire an additional 15,000 people in the US over the next five years, to further augment our local workforce," the company said.

"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," it said.