Saturday, 28 March, 2026
HIRE Act Threatens to Undermine Indian IT’s Cost Advantage with 25% Outsourcing Tax
By Isha
A newly proposed U.S. bill, the HIRE Act, introduced by Senator Bernie Moreno, seeks to impose a 25% tax on American companies outsourcing to foreign firms—targeting services like IT from India. Analysts warn the legislation could erode Indian IT firms' cost competitiveness, strain pricing, and reduce U.S. deal flow. With India’s tech sector heavily reliant on the U.S., companies may need to diversify markets and adjust strategies in response.
Read full story at Economic Times