Infosys says U.S. PERM suspension will have no material impact

Infosys (NSE: INFY) stated that it does not anticipate any material effect from the U.S. government's move to suspend its involvement in the Permanent Labor Certification (PERM) program, an important pathway through which employers can sponsor skilled foreign workers for U.S. permanent residency.

In a Saturday exchange filing, the Indian IT services company said, “We welcome the opportunity to work with the Department of Labor and related government agencies to answer any questions they may have.”

The U.S. government disclosed the suspension on Thursday, and it impacts a group of large technology and IT services companies: Infosys, Tata Consultancy Services, Wipro, HCL Technologies, Cognizant, Microsoft, Adobe and Capgemini.

As a result of the suspension, the affected companies will not be able to submit new PERM applications or have pending applications processed.

The move is part of a broader Trump administration crackdown on skilled foreign labor. U.S. officials have alleged that certain companies used the program to swap American workers for lower-cost foreign employees.

The PERM program is distinct from the H-1B temporary work visa program, and the suspension does not appear to have a direct impact on people who already hold H-1B visas.