TCS Addresses US Green Card Policy and Workforce Strategy

Tata Consultancy Services (TCS) has responded to recent changes in US immigration policy, specifically regarding the Permanent Labour Certification Programme, known as PERM. This programme is crucial for foreign workers, particularly those from India, aspiring to obtain permanent residency in the United States. On 8 October 2026, US Secretary of Labor Keith Sonderling announced a suspension affecting major Indian IT outsourcing firms, including TCS.

The suspension of PERM is significant because it serves as the essential first step for American employers wishing to sponsor foreign workers. Many employees within the Indian IT sector aim to secure H-1B or L-1 visas and subsequently seek green cards through this programme. Dr Ganesh Natarajan, former chairman of NASSCOM, warned that this policy change might demotivate employees who often view permanent residency as a key incentive for joining IT companies.

While the immediate impact on companies may be limited, the long-term effects on employee morale could be detrimental. Indian IT professionals who typically join the industry with the expectation of eventually obtaining a green card may find this pathway blocked, leading to disillusionment.

Dr Natarajan noted that despite the suspension, there are no immediate financial implications for firms like TCS, as the H-1B visa program remains intact and costs have not increased. However, as employees become increasingly demotivated by the lack of permanent residency options, there could be a medium-term impact on the workforce. 'The route looks blocked now,' Dr Natarajan said, reflecting on the sentiments of many within the industry.

He emphasised that it is not solely about cost effectiveness that Indian firms employ talent from India, noting the wealth of technical skills available in the country. Despite the rich pool of expertise in India, competition for highly qualified local talent in the US remains challenging. The balance between local American talent and Indian IT professionals employed in the US varies by company and project type.

Data suggests that for onsite work, an estimated 70% of employees in Indian IT organisations are from India, while around 30% are local hires. Conversely, in offshore outsourcing, about 85% of project work is performed by professionals from India, which reflects the high quality and cost-effectiveness of Indian programmers compared to their American counterparts.

Moving forward, some industry experts suggest that these restrictions could lead to a shift where more American work may flow to India, with a potential slowdown in recruitment within the US, as demand for offshore work grows. This requires careful consideration by Indian IT companies, especially given that the United States is a primary market for their services.

Dr Natarajan concluded by stating that while there may be negative perceptions surrounding the employment of foreign professionals in the US, reputable Indian companies maintain high professional standards. He urged stakeholders to focus on both the realities of the situation and the perceptions that accompany it, particularly in light of comments from US officials indicating that foreign workers might be considered 'indentured foreign servants.' This term may be contentious but highlights the growing dialogue around immigration policies and their effects on the global workforce in the IT sector.