India, Nov. 15 -- The HIRE Act bill introduced in the U.S. Senate on 5 September 2025 seeks to penalise outsourcing through a 25 per cent excise tax and denial of tax deductibility for payments to foreign service providers.

For India's $280-billion IT, BPO and GCC ecosystem-dependent on the U.S. for over 60 per cent of revenues-this would sharply erode the cost advantage that underpins offshore delivery.

Though still at an early legislative stage, the bill signals rising U.S. hostility to offshoring, and India's tech sector must monitor it closely.

The new 'Halting International Relocation of Employment (HIRE) Act' bill, introduced in the U.S. Senate on 5 September 2025-if it becomes law-would pose a serious threat to India's IT and BP...