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Asia’s Largest IT Firm Shrugs Off Latest US Immigration Curbs: What the PERM Suspension Does and Doesn’t Change

Tata Consultancy Services says the US PERM green-card suspension will not affect its US workforce strategy, citing single-digit PERM filings. Here is what the October 8, 2026 action covers and what it does not change.
From TheFinanceBase Team3 min to read
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Tata Consultancy Services (TCS) says the US suspension of its Permanent Labor Certification (PERM) green-card applications will not change its US workforce strategy or its customer engagements. The company’s explanation is that its PERM applications have been in single digits in each of the last two years. That is TCS’s own estimate of likely impact, not an independently measured outcome, and the suspension is a different matter from the H-1B visas that many IT employees hold.

What the October 8, 2026 announcement covers

On October 8, 2026, the US government announced the suspension of several large technology firms, TCS among them, from the Permanent Labor Certification (PERM) program. PERM is the Department of Labor labor-certification step used in some employer-sponsored, employment-based green-card cases. Contemporary reporting describes the suspension as barring new PERM applications and halting processing of pending cases involving the named employers.

The headline’s “shrugs off” framing reflects TCS’s stated expectation of limited impact. It does not show that the action is inconsequential for every worker or every pending case. Outcomes depend on the individual’s own filing history and status, so the corporate statement should not be applied to a specific person’s case without checking it.

PERM and H-1B are different processes

Most of the confusion around this story comes from treating two separate immigration tools as one. PERM is a step on the path to permanent residence. H-1B is a temporary work status. Reporting states that the PERM suspension does not by itself mean a current TCS employee suddenly loses H-1B status.

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Question PERM (labor certification) H-1B (nonimmigrant work status)
What it is Department of Labor certification step used in some employer-sponsored, employment-based green-card cases Temporary work status for specialty-occupation workers
Purpose Leads toward permanent residence Authorizes temporary employment
Effect of the October 8, 2026 action Reported as barring new applications and halting processing of pending cases involving the named employers Not stated as cancelled; reporting says the PERM suspension does not itself end existing H-1B status
TCS-specific volume Single-digit applications in each of the last two years, per TCS Not stated for TCS alone; see the group-level figures below

Because the two processes run on different timelines and under different rules, a PERM suspension and an H-1B status question should be assessed separately.

TCS’s stated position

TCS says its PERM applications have been in single digits in each of the last two years. On that basis, it does not expect the suspension to affect its US workforce strategy or its customer engagements. The company also describes its US workforce strategy as anchored in local hiring.

These are the company’s claims. They are not an audited filing or a government statistic. This article paraphrases TCS’s statement; no named executive’s verbatim quotation is available for it.

NASSCOM’s view

NASSCOM, the Indian IT industry association, says immigration policy and skilled-talent mobility are distinct issues and should not be read through the same lens. It also says Indian technology firms have reduced their reliance on H-1B visas and expanded local hiring in the US. That is the association’s position, not an independent measurement.

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The H-1B numbers in context

A recent report citing US Department of Labor data, as reported by Mint in 2026, tracks six large Indian IT services firms: TCS, Cognizant, Infosys, HCL Technologies, Wipro and Tech Mahindra. The figures below are group-level H-1B approvals and are not a count of PERM applications.

Measure (six firms combined) Figure
H-1B visas as of March 31, 2026 11,041
H-1B visas a year earlier (as reported) About 18,469
Reported change About 40% decline

The decline is a dated, group-level comparison. It does not show how many green-card cases were affected, and it should not be used as a proxy for PERM exposure.

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What is still unsettled

As of October 9, 2026, available reporting does not establish the operative notice, how long the suspension will last, the review or appeal route, or how each pending PERM case will be treated. It also does not confirm whether any court action or agency clarification has followed the announcement. Firm predictions about worker outcomes or long-term revenue effects would go beyond the evidence.

What to check if you have a PERM case or hold an H-1B

  • Ask your employer’s immigration counsel whether your PERM case is among the pending matters affected by the named-employer action, and request the current status in writing.
  • Keep copies of every labor-certification, petition and approval notice you hold, along with their dates.
  • Confirm your H-1B validity and any petition dates separately from your PERM status; the two do not move together.
  • Do not rely on a corporate statement about overall impact to judge your own case.

If anything in your case conflicts with what your employer or counsel reports, treat the individual notice as controlling and raise the discrepancy with counsel promptly.

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