Infosys has confirmed that the recent suspension from the US Permanent Labor Certification Program (PERM) will not have a material impact on its business operations. The company emphasized its strong local workforce and technology hubs in the United States as key factors supporting its continued growth and compliance.
- Infosys reassures no significant impact from US PERM suspension.
- The company has invested in local US workforce and innovation centers.
- Tata Consultancy Services (TCS) also reports no expected impact.
- Eight major IT firms are suspended from the US PERM program.
- US government aims to protect American jobs and reduce fraud.
What is the US PERM suspension and which companies are affected?
The US Department of Labor recently suspended eight IT companies, including Infosys, TCS, Wipro, HCL Technologies, Cognizant, Adobe, Microsoft, and Capgemini, from the Permanent Labor Certification Program (PERM). This program is a crucial step for foreign workers seeking green cards in the United States.
The suspension is part of a broader effort by the US government to crack down on immigration fraud and protect American jobs. The Department of Labor, led by Secretary Keith Sonderling, announced these measures to ensure compliance and integrity in the labor certification process.
How has Infosys responded to the suspension?
Infosys issued a statement welcoming the opportunity to cooperate with the Department of Labor and related agencies. The company does not expect the suspension to materially affect its organization. Infosys highlighted its investments in building a strong local workforce and technology and innovation hubs across the US.
The company remains committed to its employees, clients, and communities in the United States and to adhering to all applicable laws and regulations.
What is Tata Consultancy Services' stance on the PERM suspension?
TCS also addressed the suspension, stating that it does not anticipate any impact from the US government's decision. The company noted its compliance with directives from the Department of Labor and emphasized its US workforce strategy, which focuses on hiring local talent through campus recruitment and maintaining a significant presence across 31 offices and delivery centers in the country.
What is the current market impact on IT stocks?
Despite the suspension news, the NIFTY IT index rose by 1% for the week ending October 9, 2026. However, on a year-on-year basis, the index has declined by 20%. Seven out of ten IT stocks ended the previous week in positive territory, including Persistent Systems, Mphasis, TCS, Coforge, and Wipro.
Infosys shares closed at ₹1,023.4 on the National Stock Exchange on October 9, 2026, marking a 2.65% increase for the day. Nevertheless, the stock has fallen 37% since the start of the year and 20% over the past six months. Its one-year high was ₹1,728 on February 3, 2026, while the 52-week low was ₹980.40 on September 29, 2026.
Why is the US government suspending these companies from PERM?
The suspension is part of the Trump administration's efforts to reform immigration policies by targeting fraud and protecting American jobs. The government aims to ensure that foreign workers do not displace US workers unfairly and that companies comply with labor laws.
US Vice President JD Vance has criticized companies like Microsoft for allegedly abusing the immigration system, reflecting the administration's tough stance on immigration enforcement.
Frequently Asked Questions
Q: What is the PERM program?
A: The Permanent Labor Certification Program (PERM) is a US government process that allows employers to sponsor foreign workers for permanent residency (green cards) by certifying that no qualified US workers are available for the job.
Q: How will the PERM suspension affect foreign workers?
A: The suspension may delay the green card process for foreign workers employed by the affected companies, potentially impacting their ability to obtain permanent residency in the US.
Q: Are Infosys and TCS planning to change their US workforce strategies?
A: Both companies emphasize their commitment to hiring local talent and maintaining compliance with US laws. They do not anticipate major changes due to the suspension.
Q: What is the impact on Infosys stock prices?
A: Infosys shares have experienced a decline over the year but showed a 2.65% increase on October 9, 2026, following the announcement.
