Stories
HCLTech Downplays Impact of US Labour Certification Freeze
- •HCLTech does not expect any significant impact on its workforce strategy or client engagements following the suspension of the US permanent labour certification programme.
- •HR head Ram Sundararajan stated that the company will comply with the Department of Labor directive and has a low number of recent PERM applications.
- •The company has prioritized local recruitment in the US over the years to build a substantial talent base and reduce dependence on overseas transfers.
- •Other major Indian IT firms like Infosys and Tata Consultancy Services have also downplayed the effects of the suspension due to limited PERM filings and strong local hiring.
- •HCLTech noted that its dependence on H-1B visas remains unchanged and its subcontractor workforce has stayed stable over recent quarters.
Key Questions Answered
HCLTech anticipates little to no disruption from the US permanent labour certification programme suspension because the number of PERM applications the company submitted over recent years has been relatively small. Additionally, the firm has focused on ramping up local recruitment in the US to build a significant domestic talent base, minimizing its operational dependence.
Major Indian IT service providers like Infosys and Tata Consultancy Services have similarly downplayed the effects of the suspension. Infosys noted that the action would not materially affect its operations, while TCS highlighted its own limited PERM application volume and strong emphasis on local US hiring as key mitigating factors.
The US Department of Labor suspended new and pending permanent labour certification applications for several major technology and outsourcing companies amid increased scrutiny and policy changes regarding immigration, employment practices, and alleged visa system abuses.
