Will Trump Ban Indian Outsourcing?

Is Trump banning US outsourcing to India? Well, there’s no official announcement.

But what is driving this rumor? AI, outsourcing, or a combination of both?

Many tech companies are outsourcing jobs to India. This costs American workers job opportunities and salary.

AI News for leaders: https://www.aiupdate.ai

India captures 59% of US outsourced IT jobs, with labor costs 40-70% lower than hiring Americans.

70% of Fortune 500 companies outsource to India, and Big Tech is investing billions in Indian infrastructure: Microsoft ($80B in AI, $3B+ in India), Amazon, Google, and Meta are all in deep.

This isn't actually anything new, but here’s what is:

AI is cutting jobs on both sides.

India’s TCS is firing thousands, and US college grad unemployment has jumped to 6.6%, with entry-level jobs vanishing. Companies will go AI-first to cut costs—whether that’s in the US or overseas.

Don’t wait for politicians to “save” your job.

Men who stay relevant, network, and master new AI tools will protect their income in the changing economy.

Key Takeaways:
1. No official Trump ban on outsourcing to India; just speculation.
2. India accounts for 59% of US abroad IT jobs; labor savings of 40-70% (NASSCOM/industry data).
3. 70% of Fortune 500 companies outsource IT & support to India.
4. Microsoft invests $80B in AI this year—$3B in cloud/AI infrastructure in India.
5. Google, Amazon, Meta: Investing billions in Indian digital infrastructure and support hubs.
6. India’s youth unemployment is nearly 19%—AI is slashing jobs there too.
7. US college grad unemployment now 6.6%; entry-level ladder is “wiped out” by AI.
8. AI will “fundamentally change” how outsourcing works—companies will pick AI over humans wherever possible.

Chapters:
00:00 - Intro
01:40 - Why Is It Important?
03:45 - Current Indian investment
09:15 - Bottom Line
12:20 - Final Thoughts

References:

https://www.reuters.com/business/worl...

https://hbr.org/2023/04/the-u-s-india...

https://www.demandsage.com/outsourcin...

https://www.business.hsbc.com/en-gb/i...

https://www.forbes.com/sites/jackkell...

https://economictimes.indiatimes.com/...


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