'Indian IT firms follow local laws': Nasscom defends industry after US PERM freeze

After the US government temporarily suspended several major technology companies from submitting new applications under the Permanent Labor Certification (PERM) program, the National Association of Software and Services Companies (Nasscom) said that immigration and skilled talent mobility are two separate issues and should not be viewed through the same lens.

What did Nasscom say?

In an official statement, Nasscom said the decision by the US Department of Labor has affected a particular immigration path, while Indian technology companies have significantly reduced their reliance on H-1B visas over the years, expanded local hiring and built a strong domestic workforce in the United States.

“The US Department of Labor today announced the temporary suspension of certain IT companies, including Indian technology companies operating in the US, from submitting new applications under the Permanent Labor Certification (PERM) program. While the decision affects a specific immigration pathway, Nasscom has consistently held the view that immigration and skilled talent mobility are two distinct issues and should not be seen through the same lens,” it said in a statement.

“The H-1B visa program has historically played an important role in addressing short-term U.S. skills shortages and will continue to be used to address short-term talent shortages. However, over the years, Indian technology companies have significantly reduced their reliance on H-1B visas while continuing to expand local hiring and build a strong domestic workforce in the U.S.,” the statement added.

Nasscom added that Indian technology companies have partnered with most Fortune 500 companies in the US, enabling them to innovate and grow while creating more local jobs. She said the number of workers transitioning from H-1B visas to permanent residency through the PERM process is 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 comply with applicable US regulations,” it said.

US suspends participation of Indian IT giants in the PERM program

Earlier, US Secretary of Labor Keith Sonderling announced that the US government is suspending participation in the Permanent Labor Certification Program of some of the world’s largest IT outsourcing firms, including Cognizant, Infosys, Tata, Wipro, HCL and Capgemini. The US Department of Labor attributed the suspension to several active federal investigations, although it also suspended US technology companies Microsoft and Adobe from participating in the program.

At a news conference on fighting visa fraud, the US vice president took aim at tech giants for alleged abuse of the H1B program.

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