Overview

• U.S. buyers are delaying signings and reopening pricing on technology contracts, with renegotiations expected on renewals and new deals.
• Compliance experts say the proposed 25% levy plus disallowed deductions could lift the effective burden on outsourced payments to roughly 60% in some cases.
• Indian IT firms and legal advisers are preparing lobbying campaigns, and they expect litigation if the measure advances into law.
• The potential reach includes Global Capability Centres in India that employ about two million people, with new setups and expansions seen at risk.
• Analysts consider the bill unlikely to pass in its sweeping form, yet the uncertainty is already pressuring growth, margins and hiring plans at Indian providers.