Infosys has stated it does not anticipate a material impact from the United States government's suspension of Permanent Labor Certification (PERM) applications, in a development that has drawn attention across India's IT sector. The company's reassurance, filed with stock exchanges on 11 October, follows the US Department of Labor's decision last week to suspend PERM applications for several major global technology firms, including Infosys.

What the PERM Suspension Means

The PERM programme allows skilled foreign workers to obtain permanent residency in the United States through employer sponsorship. The suspension effectively halts new and pending PERM applications by affected companies, raising concerns about the ability of Indian IT firms to retain and sponsor foreign-national employees seeking long-term US residency.

US Labour Secretary Keith Sonderling announced the suspensions as part of the Trump administration's broader crackdown on alleged visa fraud and employment practices that the administration contends disadvantage American workers.

What Infosys Said

In its exchange filing, Infosys acknowledged the Department of Labor's decision and said it welcomes the opportunity to engage with authorities. The company stated: 'Infosys is aware of the decision announced by the United States Department of Labor concerning the suspension of new and pending applications by certain companies, including Infosys, under the Permanent Labor Certification (PERM) program. We welcome the opportunity to work with the Department of Labor and related government agencies to answer any questions they may have.'

The filing added that the company does not anticipate the suspension to have a material impact on the organisation. Infosys also highlighted its investments in building a local US workforce and technology and innovation hubs across the country, affirming its commitment to comply with all applicable laws and regulations.

TCS Response: PERM Usage in Single Digits

Tata Consultancy Services (TCS) — India's largest IT firm by revenue — similarly sought to reassure investors, stating that its PERM filings over the past two years were in single digits and therefore unlikely to affect its workforce strategy or client engagements.

In its own exchange filing, TCS said its US workforce model is built around local hiring through a robust campus recruitment model, with a presence spanning 31 offices and delivery centres across the country. The company also reiterated a previously announced plan to hire an additional 15,000 people in the US over the next five years to further grow its local talent base.

Broader Context and What to Watch

The suspension is part of a pattern of escalating immigration and labour enforcement measures under the current US administration, which has targeted companies that rely on foreign skilled workers under visa programmes such as the H-1B. Indian IT firms, long reliant on the US market for the bulk of their revenues, have been navigating a shifting regulatory landscape.

Notably, both Infosys and TCS have in recent years publicly committed to localisation strategies in the US — a move that appears to have served as a buffer against the current regulatory action. Both companies said they will make further regulatory disclosures if required. Analysts and industry observers are likely to watch whether other Indian IT firms named under the PERM suspension issue similar reassurances in the coming days.