A recent claim by right-wing activist Laura Loomer, a vocal supporter of Donald Trump, has sparked debate about a potential ban on outsourcing of IT work to Indian companies. Loomer alleged in a post on X (formerly Twitter) that President Trump is considering blocking U.S. IT companies from outsourcing work to Indian firms. She further connected the issue to language preferences, stating that the move would eliminate the need for Americans to "press 2 for English" when contacting customer service, and added, "Make Call Centres American Again!".
If implemented, this could significantly impact the $250 billion Indian IT industry. India is the largest destination for outsourced IT work, accounting for nearly 60% of the global outsourcing market. Major Indian IT companies like TCS, Infosys, Wipro, HCLTech, and Tech Mahindra, which employ millions of engineers and provide various services to major U.S. corporations, could be affected. These services include software development, consulting, and back-office operations.
The claim has emerged amid existing trade tensions between the U.S. and India. While President Trump and Indian Prime Minister Narendra Modi have expressed positive sentiments regarding their relationship, disagreements concerning tariffs, market access, and services trade persist.
Adding to the discussion, right-wing commentator Jack Posobiec has advocated for tariffs on foreign remote work, suggesting that countries should pay for the privilege of providing remote services to the U.S., similar to tariffs on goods. Reportedly, Peter Navarro, Trump's trade advisor, who is known for his protectionist policies, has shown support for this idea.
The suggestion of blocking outsourcing or imposing tariffs has faced criticism, with some arguing that it could lead to companies investing directly in Indian operations and relocating R&D centers to cut costs legally, ultimately resulting in a net export of jobs. Others suggest a tariff on outsourcing contracts, with the proceeds funding college programs and unemployment benefits for U.S. citizens.
Loomer's remarks have also brought attention to stereotypes about language barriers in Indian call centers. However, data indicates high English proficiency in India. Pew Research data indicates that 84% of Indians aged 5+ speak English proficiently. Some companies even train their agents to adopt American names and accents to make interactions smoother for U.S. customers.
It remains unclear whether President Trump is seriously considering an outright ban on outsourcing to Indian IT companies or if his administration might explore tariffs on foreign services instead. This development adds a new layer to the existing trade tensions between the two countries.
