Trump supporters' drive to block IT outsourcing puts jobs at risk

Why IT matters

- AVIK DAS & SHIVANI SHINDE

The worst fears of India's information technology (IT) services industry could be edging closer to reality, as Far-Right US activists claim that President Donald Trump is looking to block American companies from outsourcing technology work to Indian firms.

The timing could not be worse. Indian IT companies are already grappling with low single-digit growth for a second consecutive year, battered by a weak global economic backdrop and the fallout from tariffs that have drained momentum from manufacturing and retail sectors.

"The recent visa and immigration comments directed towards the country and to the IT industry in general was not a big concern for us, as the industry has moved on from visas, there is a lot of local hiring done. The fear was what if US companies are asked to reduce work with Indian firms," said a senior executive at a leading IT firm, speaking on condition of anonymity.

The US remains the largest market for IT outsourcing, and for Indian giants such as TCS, Infosys, and Wipro, it contributes around 40 per cent of their top line. "For the industry this is a wait-and-watch time. The industry does not want to comment on these issues. On the taxation issue, how do they plan to tax will not be easy... How do they intend to do it," questioned another industry veteran.