Nasscom: Immigration and Talent Mobility are Distinct Issues
Nasscom clarifies that immigration and talent mobility are distinct after the US suspends major tech firms, including Indian giants, from the PERM program.
The National Association of Software and Service Companies (Nasscom) has stepped in to clarify the industry's position following a significant move by the United States government. The US Department of Labour has announced a temporary suspension of several major technology companies—including prominent Indian IT firms—from filing new applications under the Permanent Labour Certification (PERM) programme.
In an official statement, Nasscom emphasized that immigration policies and the mobility of skilled talent should not be conflated. The industry body argued that while the suspension impacts a specific immigration pathway, it does not define the broader relationship between global talent and the US workforce.
The PERM Suspension and Its Impact
The decision by US Labour Secretary Keith Sonderling has sent ripples through the global tech sector. The suspension affects some of the largest IT outsourcing firms in the world, with Indian giants such as Infosys, Tata, Wipro, HCL, and Cognizant among those named. Notably, the crackdown also extends to US-based tech behemoths like Microsoft and Adobe.
The US Labour Department attributed this suspension to multiple active federal investigations. During a press conference focused on combating visa fraud, US officials targeted tech giants, alleging that the H-1B programme has been subject to abuse. The Vice President stated that while the programme is intended for "the best of the best" to fill impossible-to-fill roles, it has unfortunately become "rife with fraud."
Nasscom Defends Indian Tech Strategy
Nasscom responded by highlighting the evolution of Indian technology companies' operations in the United States. According to the industry body, these firms have undergone a significant strategic shift over recent years:
- Reduced H-1B Dependency: Indian tech firms have significantly lowered their reliance on H-1B visas.
- Local Hiring: There has been a steady expansion in local hiring practices within the US.
- Domestic Workforce: Companies have focused on building a strong, permanent domestic workforce on American soil.
The association further noted that the number of employees transitioning from H-1B visas to permanent residency via the PERM process was relatively limited. They also pointed out that Indian tech companies partner with a majority of Fortune 500 companies, driving innovation while simultaneously generating local American jobs.
Microsoft Responds to Crackdown
As one of the major US companies caught in the suspension, Microsoft issued a response emphasizing its commitment to the American workforce. The company stated that its remaining H-1B filings for new employees consist of individuals who are already legally present in the US, rather than new arrivals.
"They are not new arrivals to our country," Microsoft noted, adding that these employees represent only 1% of its total US workforce. The company reiterated its belief in the "strength and talent of the American workforce" amidst the administration's tightening immigration stance.
Political Pressure and Allegations
The move comes amid intense political scrutiny. Attorney General Todd Blanche stated that the announcement serves as a "strong signal" that the administration will not tolerate discrimination against American workers. Furthermore, political leaders have specifically targeted companies like Microsoft, alleging that they have benefited from H-1B visas and green cards while simultaneously laying off American staff.
Despite the current regulatory friction, Nasscom expressed confidence in the ability of Indian technology firms to remain compliant. Operating in more than 80 countries, these companies have consistently demonstrated a commitment to adhering to local laws and regulatory requirements, a standard Nasscom believes they will maintain in the US.