Pune: In a strategic response to Washington’s renewed immigration crackdown, Tata Technologies, the Pune-based engineering and product development firm, has announced plans to increase its local hiring in the United States. The move comes amid tougher visa policies introduced under President Donald Trump’s administration, which have significantly raised costs for companies relying on foreign workers under the H-1B visa programme.
Speaking to Reuters, Tata Technologies’ Managing Director and CEO, Warren Harris, confirmed that the company will “recruit more local nationals in the United States” as part of a long-term restructuring of its global workforce strategy. The shift, Harris said, was not only a reaction to changing visa norms but also part of a broader effort to strengthen the firm’s regional talent pools and reduce dependency on expatriate engineers.
The U.S. government’s recent move to sharply increase visa fees and tighten eligibility criteria for H-1B and L-1 visas has sent shockwaves across India’s technology and service industries. These visas have long been the backbone of Indian firms’ global operations, allowing them to deploy skilled engineers to client sites abroad. However, with the Trump administration pushing a “Hire American” agenda, outsourcing companies are being forced to rethink their staffing and compliance models.
For Tata Technologies, this realignment is particularly significant. The United States accounts for about 20 percent of the firm’s ₹51.68 billion (approximately $588 million) in total revenue during the fiscal year 2024–25. The company’s client base includes major players in automotive, aerospace, and industrial engineering industries now directly impacted by U.S. tariffs and reshoring initiatives.
Tata Technologies already maintains a strong local footprint in several other global markets. In countries like the United Kingdom, China, Sweden, and Germany, over 70 percent of the company’s workforce consists of local nationals. Harris indicated that a similar model will now be implemented more aggressively in the U.S., aiming for long-term sustainability in compliance with domestic labor laws and immigration trends.
By hiring more locally, Tata Technologies aims to minimize its exposure to regulatory uncertainties and avoid disruptions in cross-border talent mobility. While this transition may lead to higher operational costs due to increased wage levels in the U.S., the company views it as an investment in long-term stability and customer trust.
The Trump administration’s policies have created new challenges for Indian IT and engineering firms that traditionally rely on low-cost, high-skill deployment models. Rising visa costs, delayed approvals, and tighter scrutiny have already caused many Indian firms including Infosys, Wipro, and TCS to scale up their U.S. hiring over the past few years. Tata Technologies’ announcement signals that engineering service providers are now following a similar path, adapting their models to survive in a changing regulatory climate.
This trend could also reshape the global talent ecosystem. As more companies opt to hire locally rather than relocate Indian engineers, India’s technology sector may experience slower outbound mobility but stronger domestic innovation networks. At the same time, American graduates and engineers could see increased employment opportunities in engineering services, research, and product development.
Despite the policy headwinds, Harris remains optimistic about the U.S. market. He described the region as “vibrant and important,” expressing confidence that demand for advanced design and engineering services will rebound over the next six to nine months as industries adjust to tariff changes and supply chain shifts.
In parallel with its U.S. hiring strategy, Tata Technologies continues to expand its global presence through targeted acquisitions. The company recently agreed to purchase Germany’s ES-Tec Group for €75 million (around $87.5 million), a deal aimed at strengthening its European operations and enhancing its capabilities in automotive design and digital engineering.
Tata Technologies’ latest strategy reflects a broader corporate trend: balancing compliance with competitiveness. While stricter U.S. immigration laws have complicated traditional talent deployment, they have also pushed firms to diversify their talent pipelines and invest more deeply in local economies. For Tata Technologies, the recalibration underscores a pragmatic shift one that combines global ambition with regional adaptability.
As governments tighten borders and economic nationalism resurfaces, Indian firms will increasingly be judged by their ability to localize, innovate, and sustain growth in foreign markets without depending solely on visa-driven models. Tata Technologies’ decision could thus mark the beginning of a new chapter in India’s global engineering narrative one that blends global expertise with local opportunity.