AA Edit | IT Industry On Cusp Of Change
PERM certification is the first in the three-stage process that leads to the issue of permanent US residency or green card. When a company files PERM, it demonstrates that it has a permanent position for a foreign worker and that no qualified American is available for it at the prescribed wage
The US department of labour’s suspension of Indian IT major Cognizant Technology Solutions’ Permanent Labour Certification (PERM) filings is unfortunate as it seeks to punish people who have come legally to the United States, followed all local laws and paid taxes for no mistake of theirs.
PERM certification is the first in the three-stage process that leads to the issue of permanent US residency or green card. When a company files PERM, it demonstrates that it has a permanent position for a foreign worker and that no qualified American is available for it at the prescribed wage.
With the suspension of Cognizant’s filings, the Trump administration has ensured that its staff’s hope for a US green card is either denied or delayed. Though the action was said to be due to an alleged misuse of immigration programmes by Cognizant, this development will create uncertainty for people who are waiting for the green card.
The suspension must also be viewed in the light of the Trump administration’s broader tightening of immigration controls, which include enhanced scrutiny, social media vetting, visa appointment cancellations and prolonged processing.
The administration has also revoked large numbers of visas for alleged violations, criminal conduct and security or immigration concerns. Recently, they revoked several H-1B petitions filed by an unnamed major IT consulting company for paying their staff wages lower than expected.
The series of US actions reveal that the era of wage arbitrage that Indian IT companies turned into a successful business model for over two decades is coming to an end. However, the US faces a real scarcity of advanced talent in areas such as artificial intelligence, cybersecurity, semiconductor engineering, cloud architecture and specialised healthcare technology. Closing the door to skilled immigration would damage American innovation.
The Indian companies, therefore, must focus on addressing genuine shortages in specialised occupations, so not to essentially displace equally qualified local employees.