Impact of U.S. Tariffs on Indian IT Services Outsourcing: A Research Study

Abstract

The U.S. tariffs introduced under the Trump administration were designed to protect American industries but triggered significant shifts across global markets, including the IT outsourcing sector. This study investigates the impact of these tariffs on Indian IT companies and how they adapted their outsourcing strategies. Using a mixed-methods approach combining financial trend analysis and executive interviews, the findings reveal that Indian firms diversified their client bases, increased local hiring in the U.S., and shifted towards high-value digital services. Although the tariffs posed initial challenges, they catalyzed innovation and strategic resilience among Indian IT service providers. The study provides insights into globalization, trade protectionism, and strategic adaptation in international business.