US PERM suspension: HCLTech sees limited impact on workforce and visa plans – How it affects Indians on H1-B visa
HCLTech said during its quarterly earnings report that it does not expect much material impact on its workforce due to the US government suspending its permanent labour certification programme, or PERM.
It said that it has made a considerably small number of PERM applications in recent years.
“We will comply with the directive from the Department of Labor and respond to any questions they may have,” Moneycontrol quoted the company’s human resource head, Ram Sundarajan, as saying during the press conference on its Q2 FY27 earnings report.
“Over the last many years, we have ramped up our in-country recruiting efforts to build a significant local talent base,” Sundrajan also said, adding that this would be the company’s approach going forward.
The company also reported that the status of its H-1B applications have been most stable over the last five to six quarters since it has been building up a local workforce in the United States.
What Kotak said regarding US suspension of PERM applications
Kotak Institutional Equities has said in a report that the US decision to suspend new and pending labour certification (PERM) applications involving six major Indian IT companies is unlikely to have a significant impact on their operations or earnings.
“We do not expect a meaningful impact on delivery or earnings,” ANI quoted Kotak as saying. It also noted that a number of Indian IT companies have shifted their strategies to hire local US talent.
The suspension could affect those employees who are seeking an extension on their H-1B visas beyond the standard limit of six years, as qualifying PERM or I-140 filings can help them secure these extensions. Those employees who have approved I-140 petitions are likely to face limited direct impact.
What is PERM?
PERM is a labour certification process required for many employer-sponsored green card applications in the US. Under this process, employers must determine the prevailing wage, conduct recruitment and demonstrate that there are no sufficient qualified and available US workers for the permanent position.
After receiving PERM certification, employers can file an I-140 immigrant petition with the US Citizenship and Immigration Services (USCIS). However, PERM certification alone does not provide work authorisation or permanent residency.
Kotak said the risk to Indian IT companies would become more significant if US immigration restrictions were extended to existing work authorisations, deployment of employees at client locations or outsourcing arrangements.
“A more material risk would arise only if immigration restrictions extend to existing work authorization, client-site deployment or outsourcing. The present measure does not reach that threshold,” the report said.
