TCS faces US suspension of green-card programme

Research Analyst: UJVIN NEVATIA (PROPRIETOR: NEVAT INVESTMENTS) | SEBI Registration No.: INH100009628 Tata Consultancy Services Limited (

) is among major IT companies suspended from the US Permanent Labour Certification (PERM) programme. The action could affect the permanent residency pathway for foreign workers employed by the company in the US. What happened? The US Labor Department said it would stop accepting new or processing pending PERM applications involving TCS, Infosys, Wipro, HCL Technologies and Cognizant, alongside Microsoft and Adobe. The suspension is linked to the US administration's broader scrutiny of foreign-worker programmes. The action does not directly suspend existing H-1B visas. PERM is a separate process generally used by employers to support employment-based green-card applications. Why does it matter? The US is the largest market for Indian IT companies. A prolonged PERM suspension could create uncertainty around employee retention, workforce planning and the movement of skilled workers. It could also increase the need for local US hiring and change how companies balance onsite and offshore delivery. My view The immediate impact on TCS revenue is difficult to quantify. The bigger issue is whether the restriction becomes a longer-term workforce constraint. TCS has already highlighted strong AI demand and a large US business. Its ability to manage talent locally while maintaining delivery efficiency will therefore be important. What I am watching next I would track the duration of the PERM suspension, US hiring, employee costs and the mix between onsite and offshore delivery. I would also watch whether the US expands restrictions on other foreign-worker programmes. No Recommendations Source: NDTV Profit Disclosure: I, my entity, associates or relatives do not have any holding, position or other material interest in Tata Consultancy Services Limited.