Indian IT industry body NASSCOM stressed that the programme concerns permanent immigration and is distinct from the H-1B visa programme for temporary workers, which is unaffected by the suspension.
Analysts told CNA the immediate impact on Indian IT firms would be limited, but prolonged restrictions could raise staffing costs and disrupt workers’ plans to settle permanently in the US.
“I see this as a bigger talent retention concern than an immediate business disruption (for Indian IT firms),” said Achyuta Ghosh, executive research leader at analyst firm HFS Research.
LIMITED IMPACT, BUT HIGHER COSTS AHEAD
In a statement filed with the local stock exchange on Friday, TCS said that it had submitted fewer than 10 PERM applications over the past two years and did not expect the suspension to affect its workforce strategy or client engagements.
It reiterated its plans to hire 15,000 additional employees in the US over five years.
Ghosh said Indian IT firms would likely focus their US hiring on client-facing consulting, architecture and specialised engineering, while subcontractors in the country offered “more immediate flexibility”.
He expects companies to use more subcontractors and selectively hire locally in the US over the next six to 12 months, while reassessing how much US-based work can be shifted offshore.