India IT providers seek diversification amid US trade and visa uncertainty

Indian systems integrators (SIs) and managed service providers (MSPs) are facing strategic pressure to diversify their business models due to ongoing trade and immigration tensions with the United States.

India has criticized recent US measures affecting technology companies' participation in the Permanent Labor Certification (PERM) programme. While the suspension of PERM does not invalidate existing H-1B visas, the Ministry of External Affairs stated that the action does not advance shared ambitions between the two nations.

Economic uncertainty is compounded by stalled trade negotiations. Indian Finance Minister Nirmala Sitharaman noted that discussions between India and the US have reached a plateau with limited room for concessions. This environment complicates long-term planning for Indian firms, particularly those reliant on US demand or those requiring the deployment of engineers to American client sites.