Overview

• Analysts and industry officials report U.S. clients are slowing signings, reopening pricing and stretching renewals rather than cancelling existing work.
• The bill would deny tax deductibility for outsourcing expenses, require additional reporting and route proceeds to a Domestic Workforce Fund for U.S. training.
• EY India estimates the effective burden on some outsourced payments could approach 60% once combined federal, state and local taxes are included.
• Experts say new global capability centre set-ups and expansions in India could be reconsidered, even as existing operations are likely to continue.
• U.S. companies are expected to lobby against the measure and may litigate if it becomes law, and any revenue-raising bill must clear House origination rules before advancing.