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A new U.S. Senate bill would tax offshore service payments, risking major shifts in outsourcing to India’s tech sector.
A proposed U.S. Senate bill, the HIRE Act, introduced in September 2025 by Senator Bernie Moreno (R-Ohio), would impose a 25% excise tax on payments made by U.S. companies to foreign service providers and eliminate tax deductions for such payments, potentially increasing costs for offshore outsourcing.
The legislation, which could affect India’s $280-billion IT, BPO, and GCC industry—over 60% of whose revenue comes from the U.S.—may prompt U.S. firms to shift work onshore or near-shore, renegotiate contracts, or slow new deals, especially in high-volume areas like customer support and back-office operations.
Even U.S. multinationals’ in-house GCCs in India may not be exempt.
The bill remains in early stages with no hearings or co-sponsors, but GTRI warns it signals growing political resistance to offshoring and could force Indian tech firms to expand U.S. staffing, accept lower margins, or focus on higher-value services like AI and cybersecurity.
Un nuevo proyecto de ley del Senado de EE.UU. gravaría los pagos de servicios en el extranjero, arriesgando grandes cambios en la subcontratación al sector tecnológico de la India.