US Department of Labor suspends Infosys, TCS and 6 other firms from PERM programme
GS2Polity · Governance · IR· India's bilateral relations· Prelims·
Labor certification and outsourcing regulations: a GS2 and Ethics case study on trade and human capital.
Why in news
The US Department of Labor suspended eight major technology firms, including Infosys and TCS, from the Permanent Labor Certification (PERM) programme.
Background
The US Department of Labor suspended eight firms: Infosys, TCS, Wipro, HCL Technologies, Capgemini, Cognizant, Microsoft, and Adobe. TCS announced plans to hire 15,000 additional US workers over a five-year period following the suspension.
Facts for Prelims
- BodyPERM: Permanent Labor Certification programme managed by the US Department of Labor
- FactIndian firms accounted for less than 2% of last year's PERM certifications
- FactTCS plans to hire 15,000 US workers over five years
Prelims practice question
What percentage of last year's PERM certifications did Indian firms account for?
- (a)More than 10%
- (b)Less than 2%
- (c)Less than 15%
- (d)Exactly 5%
Show answer
Answer: (b) Less than 2% — The note states that Indian firms accounted for less than 2% of last year's PERM certifications.
For Mains
Q. Discuss the implications of labor certification regulations on the operational model of Indian IT service providers in the US market.
Dimensions to cover in your answer
- Regulatory friction: Compliance hurdles in US labor certification affecting Indian IT outsourcing models
- Labor market dynamics: Shift towards domestic hiring to mitigate visa-related certification suspensions
Keywords: Labor Certification · Outsourcing · Regulatory Compliance · Human Capital · Trade Relations
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