Wipro announced it does not anticipate any material business impact from the US government's recent suspension of new Permanent Labor Certification (PERM) applications for several companies. The IT services firm clarified that this action by the US Department of Labor pertains to a specific pathway for permanent residency and is distinct from broader skilled worker mobility programs, such as the widely used H-1B visa.
The company further stated that its long-term localization strategy means more than 80% of its US workforce is hired locally. Wipro reaffirmed its commitment to investing in local talent, complying with all applicable US laws and regulations, and ensuring uninterrupted business continuity for its clients.
US Suspends PERM Applications for IT Firms
Last Thursday, the US government suspended eight prominent IT firms, including Tata Consultancy Services (TCS), Infosys, Wipro, Cognizant, and Microsoft, from filing new applications under the PERM program for foreign workers. This move was justified by the US government, which argued that the practice had previously excluded American citizens from the job market.
This development occurs as Indian IT companies face increasing scrutiny regarding work visas and higher associated costs for H-1B applicants. The United States remains the largest market for India's substantial $300-billion IT industry.
Industry Reacts
Nasscom, the Indian IT industry's apex body, has consistently emphasized the importance of distinguishing between immigration issues and skilled talent mobility. In response to the suspension, TCS stated on Friday that it did not expect the measure to affect its workforce strategy or customer engagements, noting that its PERM applications had been in single digits over the previous two years.