Wipro says US PERM suspension will not materially affect business
NEWZA Editorial Team•
⚡ Key Financial Takeaways
The U.S. Department of Labor has halted new PERM green‑card applications for eight IT firms, including Wipro.
Wipro expects no material impact on its business, citing that more than 80% of its U.S. staff are locally hired.
Peers such as TCS, Infosys and HCLTech have issued similar statements, noting limited reliance on the suspended pathway.
Industry body NASSCOM stresses that immigration rules and skilled‑talent mobility are separate issues.
💡 Why It Matters
The suspension targets a key immigration channel that Indian IT firms have used to secure long‑term talent in the United States. By confirming that the impact will be minimal, Wipro and its peers reassure investors and clients that service delivery and project continuity remain intact, while also highlighting the sector’s growing reliance on local hiring to mitigate regulatory risk.
US suspends PERM applications for select Indian IT firms The U.S. Department of Labor announced a suspension of new Permanent Labour Certification (PERM) applications for eight technology services companies, among them Wipro, Microsoft, Tata Consultancy Services (TCS), Infosys and HCLTech. PERM is the first step for employers seeking employment‑based green cards for foreign workers.
Wipro’s response In a filing to the Bombay Stock Exchange on Tuesday, Wipro clarified that the suspension pertains only to the specific permanent‑residency pathway and does not affect broader talent‑mobility programmes such as the H‑1B visa. The Bengaluru‑headquartered firm said it does not anticipate any material business impact.
> “We remain committed to investing in local talent, complying with all applicable US laws and regulations, and ensuring business continuity for our clients,” the company said.
Wipro highlighted that over 80% of its U.S. workforce is hired locally, a result of a deliberate localisation strategy pursued over several years.
Peer companies echo the sentiment TCS, Infosys and HCLTech have all issued statements that the suspension will not disrupt their workforce plans or client engagements. Each noted that they had filed only a small number of PERM applications in recent years and continue to focus on hiring U.S. talent.
Industry perspective NASSCOM, the Indian IT industry body, warned against conflating immigration policy with broader skilled‑talent mobility, describing the two as distinct issues that should be evaluated separately.
What this means for the sector While the suspension limits a specific route to permanent residency, the affected firms appear well‑positioned to continue operations in the United States through existing visa programmes and local hiring. The move underscores heightened scrutiny of immigration practices but does not, at present, threaten the delivery of services to U.S. clients.
Looking ahead The companies will monitor any further regulatory developments and may adjust their talent‑acquisition strategies if additional immigration pathways face restrictions.
🏛️ Background & Context
PERM certification is required before an employer can sponsor a foreign worker for a green card. The U.S. action follows allegations that some firms were using the programme to sideline American workers. Indian IT services companies have historically depended on a mix of H‑1B visas and PERM applications to staff U.S. projects.
👁️ What To Watch Next
Watch for any further guidance from the U.S. Department of Labor on the duration of the suspension, and for potential shifts in hiring patterns among Indian IT firms in the United States, especially regarding H‑1B visa utilisation.
Topics:#Wipro#PERM#US immigration#Indian IT services#NASSCOM
