Tata Technologies , a global engineering and product development digital services company, is set to increase its local hiring in the United States in response to evolving immigration policies under the Trump administration. This strategic shift comes as the US plans to implement higher fees for H-1B visas, a move that could significantly impact tech companies relying on international talent.

Adapting to Policy Changes

CEO Warren Harris announced that the company will recruit more local nationals to navigate the changing visa legislation landscape. This decision reflects Tata Technologies' agility in adapting to geopolitical shifts that affect its global operations.

Company Overview and Global Presence

Tata Technologies, which provides engineering services to automotive, aerospace, and heavy machinery companies across 24 countries, boasts a global workforce exceeding 12,000 employees. The company's diverse geographical footprint is evident in its employment practices:

Financial Outlook and Market Position

The company's financial performance remains robust:

• Projected Revenue (2024-2025): Rs. 4,415.14 crore ($587.97 million)
• North American Market Share: Approximately 20% of total revenue

Despite the challenges posed by immigration policy changes, Harris expressed optimism about the US market, anticipating growth within 6-9 months as customers adjust to the new tariff regime.

Strategic Expansion and Recent Performance

Tata Technologies is not just adapting to challenges but is also actively expanding its global footprint:

1. Acquisition Strategy: The company recently acquired the German firm ES-Tec Group for Rs. 656.96 crore ($87.47 million), signaling its commitment to strategic growth.
2. Financial Performance: The latest quarterly results show a 5% increase in profit, demonstrating the company's resilience in a changing global landscape.

Looking Ahead

As Tata Technologies navigates the complex interplay of international business and changing immigration policies, its focus on local hiring in the US market represents a proactive approach to maintaining its competitive edge. This strategy not only addresses immediate regulatory challenges but also positions the company for sustainable growth in one of its key markets.

The company's ability to maintain a high percentage of local employment across various international markets suggests that this transition in the US could be executed smoothly, leveraging existing best practices from other regions.

As global tech companies continue to adapt to evolving immigration policies, Tata Technologies' approach may serve as a model for balancing international expertise with local talent acquisition strategies.

Tata Technologies , a global engineering and product development digital services company, has reported a 6.4% sequential revenue growth to Rs. 1,323 crores in Q2, marking a return to growth after a few softer quarters. The company's performance demonstrates resilience in a challenging macroeconomic environment, with notable improvements across its key business segments.

Services Business Growth

The services business, contributing 77% of total revenue, grew by 5.1% sequentially to Rs. 1,013 crores. This growth was driven by strong performance in the Aerospace and Industrial Heavy Machinery segments, which delivered a 14% sequential revenue increase in US dollar terms. The automotive vertical also showed signs of stabilization with a 0.5% sequential increase.

Technology Solutions Performance

The Technology Solutions portfolio, accounting for 23% of revenue, saw a robust 10.6% sequential growth. This was attributed to strong momentum in both the Education and Products segments, with the education business recovering as previously deferred projects moved into execution.

Financial Highlights

The company's normalized EBITDA margin improved to 16.4%, reflecting a 30-basis point increase quarter-over-quarter, after adjusting for one-time cyber incident-related expenses.

Strategic Acquisition

Tata Technologies has signed a definitive agreement to acquire ES-TEC, a move that significantly advances its European presence and automotive engineering capabilities. This acquisition will provide direct access to Volkswagen as a key customer and add over 300 highly skilled engineers with expertise in ADAS, Connected Driving, and Embedded Software.

Operational Metrics

• Total headcount: 12,402 (stable compared to Q1)
• Trailing 12-month attrition rate: 15.1% (up from 13.8% in Q1)
• DSO (Days Sales Outstanding): 109 days (up from 87 days in Q1)
• Net cash position: $123 million

Outlook

While the company anticipates some moderation in Q3 due to seasonal factors and temporary headwinds, including JLR's IT system restoration, management expects a sharp recovery in Q4. The recent large deal wins and improving demand signals provide confidence for future growth.

Warren Harris, CEO and Managing Director of Tata Technologies, commented, "Q2 has been a quarter of meaningful progress and renewed momentum. Despite operating in a complex macro environment, we have delivered sequential growth across both services and technology solutions, maintained profitability, and continued to invest in strategic capabilities that position us well for long-term success."

As Tata Technologies enters the second half of the fiscal year, the company remains focused on deepening customer relationships, driving operational excellence, and building a future-ready organization through continued investment in talent, technology, and transformation.