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HCLTech Downplays US PERM Clampdown, Sees No Material Business Impact: Here's Why

HCLTech cites minimal PERM filings and rising local recruitment as it plays down the potential impact of tighter US labour certification rules.

HCLTech Downplays US PERM Clampdown, Sees No Material Business Impact: Here's Why
HCLTech says US PERM suspension will have limited impact
Image: Wikimedia

HCLTech expects the latest US restrictions on the Permanent Labour Certification (PERM) process to have little bearing on its operations, with Chief People Officer Ram Sundararajan pointing to a sharp curtailment in filings and a growing reliance on locally hired talent.

Sundararajan said HCLTech would adhere to the US Department of Labor's requirements, noting that its PERM filings had remained at negligible levels over the past two years.

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“We will comply with the department's requirements,” Sundararajan said, underscoring the company's approach to regulatory changes in the US, a key market for the Indian IT services industry.

He said HCLTech had also stepped up local hiring over the past few years, reducing its reliance on employment-based immigration processes. 

Given the small number of PERM filings in recent years, the company does not anticipate any significant disruption to its operations.

As the US tightens scrutiny of employment-based immigration, changes to labour certification and visa rules could affect how technology companies assign employees to projects and secure work visas for them.

The PERM system requires employers sponsoring foreign nationals for certain permanent US jobs to establish that suitably qualified American workers are not available for the positions. 

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Companies must also show that hiring overseas candidates would not undermine the pay or working conditions of comparable US employees.

For Indian IT services companies, immigration rules remain an important consideration because they influence talent mobility, staffing costs and long-term workforce planning.

HCLTech's assessment suggests that its relatively limited exposure to PERM filings, alongside a greater emphasis on hiring locally, should help it navigate the regulatory requirements without a material effect on its business.

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