TCS responds to US move to bar it from Green Card program, says workforce strategy in US anchored in hiring local talent
TCS says its US workforce strategy focuses on local talent following the US government's decision to bar major IT firms from the PERM program.
India’s technology giant Tata Consultancy Services (TCS) has broken its silence following a major crackdown by the United States government, which has barred several top IT outsourcing firms from participating in the Green Card program.
TCS hits back after US bars IT giants from Green Card program
The US Department of Labour recently announced the suspension of major global IT players—including TCS, Infosys, Wipro, Cognizant, HCL, and Capgemini—from the Permanent Labour Certification Program (PERM). This move comes amid federal investigations into the alleged abuse of the program to secure permanent residency for foreign workers.
TCS: We focus on local talent
In a formal statement released on Friday, TCS clarified that its operational model in the United States is built on a foundation of domestic hiring. The company emphasized that it is not heavily reliant on the specific immigration pathways currently under scrutiny.
"Our workforce strategy in the US is anchored in hiring local talent, supported by a robust campus recruitment model," TCS stated. The company noted that it has already established a significant local presence through 31 offices and delivery centres across the United States.
Addressing the potential impact of the ban, the tech major revealed:
- TCS intends to hire an additional 15,000 people in the US over the next five years.
- The company’s PERM applications were in single digits over the last two years.
- The suspension is not expected to disrupt their current workforce strategy or customer engagements.
Nasscom defends Indian tech firms
The National Association of Software and Service Companies (Nasscom) also weighed in, arguing that the US government is conflating two different issues: immigration and skilled talent mobility. Nasscom pointed out that Indian IT firms have proactively reduced their dependence on H-1B visas by expanding local hiring and building strong domestic teams within the US.
The US Government's hardline stance
The decision by US Labour Secretary Keith Sonderling marks a significant shift in how the US views large-scale outsourcing. The Department of Labour cited investigations into the scale of foreign worker requests, noting that the named companies have collectively sought millions of foreign workers since 2009.
According to Sonderling, these companies received over 230,000 H-1B visa approvals and more than 100,000 permanent labour certifications. "That's hundred and thousands of jobs that were taken from American workers," the Secretary remarked.
"Indentured Servants": VP JD Vance's scathing critique
The political rhetoric surrounding the move was equally intense. During a press conference regarding visa fraud, US Vice President JD Vance launched a fierce attack on the outsourcing model, describing H-1B visa holders as "indentured servants."
Vance alleged that the system allows corporations to undercut American wages by bringing in cheaper labor. He claimed:
"If you are working as an H-1B visa in the United States of America, you’re earning $20,000 less than an American citizen hired in the same position. If you were brought in by one of these foreign outsourcing firms, you’re making $48,000 less than an American citizen in a similar position."
He further accused corporations of using this method to lay off American workers and maximize profits by replacing them with individuals he claimed "shouldn't be in the United States of America to begin with."
This crackdown follows a recent proposal by the US Department of Homeland Security to introduce new fees for F-1 non-immigrant students participating in Optional Practical Training (OPT), a move aimed at protecting the domestic labor market and strengthening immigration integrity.