- Published on September 10, 2025
- In IT Services
Outsourcing Crackdown Looms in Washington, India’s $100 Billion IT Industry on Edge
The proposed HIRE Act could tax offshore services, raising costs for corporations and threatening Indian IT jobs and revenues.
- By C P Balasubramanyam
The call to “bring jobs back to America” is echoing once again in Washington, this time with India in focus.
What began as a campaign refrain has now entered policy deliberations within President Donald Trump’s administration and among his supporters, raising the prospect of new limits on cross-border IT services.
Republican senator from Ohio, Bernie Moreno, has introduced the Halting International Relocation of Employment Act (HIRE Act).
The bill seeks to impose a 25% tax on payments made by American companies to foreign firms for services provided to US customers, mainly targeting outsourcing.
It also blocks such transactions from being tax-deductible, requires companies to report them to the government, and directs the tax proceeds into job training and workforce
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C P Balasubramanyam
Bala is a journalist covering Indian tech companies and startups from Bengaluru.
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