Infosys Dismisses Major Impact from US PERM Program Suspension
Bengaluru: IT bellwether Infosys has moved to reassure investors and stakeholders following a recent directive from the United States Department of Labor (DOL). The federal agency has temporarily suspended the processing of new and pending applications under the Permanent Labor Certification (PERM) program for a select group of companies, a list that includes the Bengaluru-based software giant.
The PERM process is a critical pathway for foreign professionals to obtain permanent residency, or a “Green Card,” in the United States. While the suspension has raised concerns across the IT services sector regarding talent mobility and long-term staffing stability, Infosys has publicly downplayed the potential consequences of the move.
Company Response and Regulatory Compliance
In a formal filing submitted to Indian stock exchanges, Infosys addressed the situation directly. The company confirmed it is fully aware of the DOL’s decision and is taking proactive steps to engage with federal authorities.
“We welcome the opportunity to work with the Department of Labor and other government agencies to address any questions they may have,” the company stated. Emphasizing its resilience, Infosys explicitly declared, “We do not anticipate yesterday’s announcement of such suspension to have a material impact on the organization.”
The tech major remains confident in its operational model, suggesting that its internal workflows and resource management are diversified enough to withstand regulatory shifts in the immigration space.
Strategic Shift Toward Local Hiring
Beyond its immediate response to the suspension, Infosys highlighted its long-standing strategy of “localization” in the North American market. The company has spent years investing heavily in its domestic US footprint, establishing multiple technology and innovation hubs across various states.
By focusing on recruiting local American talent rather than relying solely on foreign visa-based labor, Infosys has effectively de-risked its US operations against volatility in immigration policies. The company reiterated its ongoing commitment to its American workforce, its diverse client base in the region, and its promise to remain in full compliance with all prevailing US labor laws and regulatory frameworks.
Context of the US Immigration Climate
The PERM program is frequently subject to administrative review, and suspensions or temporary processing pauses are not unprecedented. These measures are often tied to audits, internal policy reviews, or verification processes by the Department of Labor to ensure that foreign worker hiring does not negatively impact the domestic job market.
Industry analysts suggest that while the suspension creates a temporary hurdle for individual employees looking to transition to permanent status, it does not fundamentally disrupt the core service delivery model of large Indian IT firms. Because major players like Infosys have shifted toward a hybrid workforce model—utilizing a mix of global delivery centers, local US hires, and short-term visa holders—the impact of a PERM freeze is likely to be viewed by the market as a manageable operational challenge rather than a structural threat to the company’s bottom line.
Infosys shares, which are often sensitive to US immigration policy news, are expected to remain under observation as the company navigates discussions with the DOL in the coming weeks.
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