New Delhi, Sept. 23 -- The H-1B visa fee hike is said to be a major blow to the Indian IT companies, but a potentially bigger threat is looming on the Indian IT sector, which could significantly erode Indian IT firms' revenue and profitability.

The Halting International Relocation of Employment (HIRE) Act, tabled in September 2025 by Ohio Republican Senator Bernie Moreno, aims to discourage US companies from outsourcing jobs to foreign workers. The bill seeks to impose a 25 per cent tax on payments made to foreign firms for services offered to American consumers.

India's $280 billion IT services industry is staring at a risk of severe disruption as the HIRE Act will ensure tax on outsourced services.

Major Indian IT firms, including TC...