US HIRE Act Targets Outsourcing: Big Blow For India’s $250 Billion IT Industry?

A new US bill could shake the foundations of India’s $250 billion IT industry. The Halting International Relocation of Employment Act—or HIRE Act—introduced by Republican Senator Bernie Moreno, proposes a 25% outsourcing tax on payments made by US firms to foreign companies. It also eliminates tax deductions on such expenses. The revenue would fund a Domestic Workforce Fund to retrain American workers. For Indian IT giants like TCS, Infosys, Wipro, and HCLTech—who derive over 60% of their revenues from the US—the impact could be massive. If passed, the law would raise costs for American businesses while forcing India’s outsourcing sector to rethink strategy. Will the HIRE Act pass? And could it redefine global outsourcing?