Article Summary

Tech Mahindra anticipates growth in the second half of Fiscal Year 2026, driven by its financial services and manufacturing segments, despite headwinds in its US business. The company's CEO noted macro stabilization but cited challenges like the proposed US HIRE Act's 25% outsourcing tax and ongoing H-1B visa issues. Although the Americas market saw a year-on-year revenue decline, sequential growth in the region suggests a potential turnaround.

TNP AI: Key Insights

This article highlights how proposed US legislation like the HIRE Act and persistent H-1B policy uncertainties directly influence the strategic decisions and financial performance of major IT services firms. For employers of foreign talent and companies relying on outsourcing models, this signals potential increases in operational costs and complexity, necessitating a proactive reassessment of global workforce strategies.

The mention of a 'H-1B visa shocker' underscores the continuing unpredictability within the US skilled immigration landscape, reflecting a broader trend of increased scrutiny and policy shifts affecting visa-dependent companies. This environment could motivate companies to diversify their talent pools and investment locations, potentially shifting focus towards countries with more stable and predictable immigration policies.