TCS Responds to US Green Card Ban With Plans for 15,000 Local Hires
TCS says the US PERM suspension will not hurt its business because it barely used the program and plans to hire locally instead.
Visa Sponsorship · Source: Outlook Business
What happened
The US government recently suspended several major technology companies from the PERM program. This program serves as the required first step for employers wanting to sponsor foreign workers for green cards. US Vice President JD Vance and Labor Secretary Keith Sonderling announced the freeze on Thursday. The suspension targets major IT service providers. The list includes TCS, Infosys, Wipro, HCLTech, Cognizant, and Capgemini. The Labor Department stated that any PERM filing by these companies will now go unprocessed. This applies to freshly lodged applications as well as those already waiting in the queue.
Tata Consultancy Services quickly released a public statement to calm concerns over the freeze. The company stated that the decision will leave its workforce plans and client work largely untouched. TCS leaned on its own internal data to make this case. The company revealed that its PERM applications stayed in the single digits across the last two years. Because they barely used the green card route recently, they do not expect the suspension to impact how they staff projects or serve customers.
Instead of relying on green card sponsorships, TCS is heavily focusing on local talent. The company added that its American operations rest mainly on hiring locally. They are using campus recruitment as their primary pipeline for new talent. TCS has already built a sizable domestic workforce spread over 31 offices and delivery centers across the country. To reinforce this strategy, the company pointed to its earlier commitment to hire an additional 15,000 people in the US over the next five years.
By the numbers
- 15,000 — Number of local US hires TCS plans to make over the next five years.
- 31 — Number of offices and delivery centers TCS currently operates in the US.
- Single digits — The number of PERM applications TCS filed over the last two years.
Why it matters
This development changes the landscape for foreign workers hoping to secure permanent residency through these major IT firms. Nasscom noted that only a limited number of employees move from H-1B visas to permanent residency through PERM. However, for those who do, the path is now stalled. Market experts point out that the freeze covers green card sponsorship, not the H-1B visas used to staff client projects. This means current contracts and delivery will carry on as before. But employees waiting on permanent residency might lose their reason to stay. They could move to other employers that can still sponsor them, which would lift attrition rates at the suspended firms.
The second-order effect is a faster shift toward local hiring and offshore delivery. The Trump administration previously alleged that tech companies use visa routes to bring in cheaper labor and displace American workers. In response, Indian IT firms spent the past few years trimming their reliance on H-1B visas and PERM. If foreign talent leaves due to the green card freeze, companies face a tough choice. They will have to choose between hiring pricier US workers or moving more work offshore. Reports suggest a gap between the supply of and demand for local talent still remains, making campus partnerships even more critical.
Who this hits
H-1B workers at suspended IT firms
Your path to a green card through these specific employers is paused because pending and new PERM applications will go unprocessed. You may need to switch to a company that is not suspended if you want to continue your permanent residency process.
New US graduates
Your job prospects with these companies are improving as they pivot away from visa sponsorships. Firms like TCS are heavily relying on campus recruitment to meet their goal of 15,000 local hires over the next five years.
IT service clients
Your current projects will not face immediate disruptions. Experts confirm this is a green card freeze, not an H-1B ban, so current delivery teams remain intact.
What to do this week
- If you are on an H-1B visa at a suspended company, check the status of your PERM application and consult an immigration lawyer about your options.
- If you are a new graduate, apply directly to local roles at TCS and other IT firms that are shifting their focus to campus recruitment.
- Track which companies are actively sponsoring green cards right now before accepting a new job offer.
- Monitor management commentary during this results season to see if the curbs spread from PERM to H-1B rules.
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My take
Companies are adapting to visa restrictions by hiring locally and shifting work offshore. I see this as a clear signal to follow the hiring moves rather than panicking over the news. If you need sponsorship, you must target employers who still have active, unprocessed green card pathways.