- Published on September 16, 2025
- In GCC
Tax Concerns Weigh Heavy on GCC Strategy
Smaller and mid-market GCCs, which typically run on tighter budgets, are expected to be hit harder than their larger peers.
- By Shalini Mondal
A recent call on X, posted on September 1, to impose levies on all outsourcing and foreign remote work—and a repost by US president Donald Trump’s senior trade adviser, Peter Navarro—has reignited worries of a looming digital tariff fight. Proponents argue countries should pay to deliver services to the US, much like they do for goods, with rates calibrated by industry and origin.
This renewed push for a tariff on outsourcing and foreign remote workers has rattled India’s $250 billion IT sector and the country’s thriving global capability centre (GCC) ecosystem. Experts warn that such a move could erode the cost arbitrage advantage that has long made India the world’s back office, forcing firms to rethink their operating models.
“An export tariff on IT services wi
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Shalini Mondal
Shalini is a senior tech journalist, exploring the latest advancements in AI. When she's not reporting on the latest innovations, you can find her immersed in her next literary adventure.
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