‘Indian IT firms comply with local laws’: Nasscom defends industry after US PERM freeze

Nasscom said the US suspension of new PERM applications affects a specific immigration pathway and should not be conflated with skilled talent mobility. It noted Indian technology firms have reduced H-1B reliance, expanded US hiring and maintain compliance with local regulations.

Following the US government's temporary suspension of several major technology companies from filing new applications under the Permanent Labour Certification (PERM) programme, the National Association of Software and Service Companies (Nasscom) said immigration and skilled talent mobility were two distinct issues and should not be viewed through the same lens.

What did Nasscom say?

In an official statement, Nasscom said the US Department of Labour's decision affected a specific immigration pathway, while Indian technology companies had significantly reduced their dependence on H-1B visas over the years, expanded local hiring and built a strong domestic workforce in the United States.

"The U.S. Department of Labor has today announced the temporary suspension of certain IT companies, including Indian technology companies operating in the U.S., from filing new applications under the Permanent Labor Certification (PERM) programme. While the decision affects a specific immigration pathway, Nasscom has consistently maintained that immigration and skilled talent mobility are two distinct issues and should not be viewed through the same lens," the statement said.

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QUESTIONS

Nasscom said the suspension affects a specific immigration pathway and that immigration and skilled-talent mobility should be viewed separately. It also said Indian IT firms have reduced their reliance on H-1B visas, expanded US local hiring and comply with local laws.

H-1B is a temporary work visa for eligible foreign workers. PERM is a labour-certification step in the employment-based green-card process; it does not itself grant permanent residency.

No. The related reporting says a suspended green-card process does not automatically end an existing employee’s ability to work. The suspension may create uncertainty for workers whose employers are sponsoring their permanent-residency applications.

The employer advertises the job, considers applicants and documents why qualified US workers were not selected, while showing that hiring a foreign worker will not harm wages or working conditions. If the Department of Labor certifies the application, the employer can proceed with an immigration petition.

The Department of Labor cited multiple active federal investigations. US officials also alleged that companies had abused foreign-worker programmes to replace American workers; Nasscom said Indian IT firms would continue to follow applicable US regulations.

"The H-1B visa programme has historically played an important role in addressing short-term skill gaps in the US and it will continue to be used to address short term talent gap. However, over a number of years, Indian technology companies have significantly reduced their dependence on H-1B visas, while steadily expanding local hiring and building a strong domestic workforce in the U.S," the statement added.

Nasscom added that Indian technology companies worked with a majority of Fortune 500 companies in the US, enabling them to innovate and grow while generating more local jobs. It said the number of employees transitioning from H-1B visas to permanent residency through the PERM process was relatively limited.

The industry body also said that Indian technology companies operate in more than 80 countries and have consistently demonstrated their commitment to complying with local laws and regulatory requirements.

"We are confident that they will continue to adhere to applicable regulations in the US as well," it said.

US suspends Indian IT giants from PERM programme

Earlier, US Labour Secretary Keith Sonderling announced the US Government is suspending from the Permanent Labour Certification Program some of the largest IT outsourcing firms in the world, which include Cognizant, Infosys, Tata, Wipro, HCL, and Capgemini. The US Labour Department attributed the suspension to multiple active federal investigations, even as it also suspended US tech majors Microsoft and Adobe from the program.

Speaking at a press conference on fighting visa fraud, the US Vice President targeted the tech giants for alleged abuse of the H1B programme.

"The H1-B visa program is meant to allow companies to bring in really the best of the best from outside the United States of America for positions that are completely impossible to fill with American workers. Unfortunately, the program has become rife with fraud," he said.