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Why Indian IT will see little impact due to Trump's new tax act

The benefits of moving work offshore to low-cost locations such as India outweigh the additional costs.

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Indian IT services companies will have a marginal impact due to The Tax Cuts and Jobs Act of US President Donald Trump which imposes a tax on payments made to offshore entities, as the benefits of moving work offshore to low-cost locations such as India outweigh the additional costs.

Most Indian companies have US subsidiaries that employ local resources to either pursue deals or engineers who deliver work onshore with clients. However, IT industry insiders say clients who look at clear benefits of delivering projects faster at lower costs could factor in the taxes in their deals with Indian firms.

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First Published: Jan 30 2018 | 3:06 PM IST

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