It is currently a wait-and-watch policy for Indian IT services companies with regard to the new tariffs and visa policies being embarked upon by US President Donald Trump. Experts point out that many companies are treading very cautiously especially and are observing how things shape up as Trump keeps unfolding his policies.
Undoubtedly the majority of revenue for Indian IT services companies comes from the US market and thus it is one of the most important regions for them. Corporates in the US might go slow in technology adoption which in turn might slow down new deals for the Indian IT services companies.
“Any policy shifts—such as new tariffs, visa restrictions, or changes in outsourcing regulations could have noticeable implications on hiring. With a significant share of revenue coming from the US, Indian IT services companies are expected to be cautious in the first half of FY26. We anticipate slower hiring as firms reassess demand and costs, along with selective technology spending focused on cost optimisation and high-impact projects,” remarked Aditya Narayan Mishra, MD and CEO of CIEL HR.
Due to cautious spending and slow technology adoption US corporates might rather go in for cost-cutting to optimise their existing resources. IT services can benefit from those.
“We see rapid innovation happening in the technology world and Indian IT services companies have been working overtime to enhance their internal efficiency and at the same time keep raising their capabilities to service their clients using the latest technologies. So we see hiring of professionals with skills in the latest technologies on the horizon,” added Mishra.
Market experts and reports point out that currently Trump’s policies have not touched the services sector and the majority of concerns are from tariffs on goods. Hence, Indian IT services companies may be a spared lot.
Currently though, not much has been touched upon by Trump with regard to the immigration of professionals, there could be concerns in the future.
It may be a temporary sign of relief but can haunt the IT services companies in the future. However, the kind of technology professionals India produces and the kind of projects that Indian companies do for US companies will be difficult to replicate by other companies including the US technology companies. However, only time will tell how things shape up in the future.
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“Tariffs, promotion of local job creation, dissuading visa issuance have become the cornerstone of the Trump 2.0. Notwithstanding his desire to create or promote local jobs, skilled sectors like IT in India would hardly be impacted by this policy change and nor would the sector need to worry over revenue losses or fewer opportunities. Replicating an ecosystem of technology skills as big as India would take more than a couple of terms,” pointed out Subramanian S, founder, president and CEO of Ascent HR.
Experts say that, however, a serious trade war owing to reciprocal tariffs could lead to indecisive periods of business for a couple of quarters for Indian IT services companies before the shocks and after effects are absorbed leading to a slower rate of growth as the possible outcome.
