Indian IT Firms Facing Risks from US Market Dependence

Indian IT firms might avoid the 25% tariffs proposed by Donald Trump, yet they are not out of trouble. A more significant and alarming concern looms: their heavy reliance on the U.S. market.

Sandeep Kundu, a technology expert based in Delhi, highlighted this issue in a widely circulated LinkedIn post. He stated that the core problem is not merely the tariffs but rather the risky strategy of depending on a single country for business.

India’s IT services generate over $200 billion in revenue each year, with more than half originating from clients in the U.S. Although services are exempt from tariffs under Trump’s trade agenda, Kundu points to a collection of emerging risks: increasingly stringent visa regulations, escalating costs, and a decline in client demand amidst rising inflation in America.

Kundu observed a significant rise in H-1B visa rejections, from 8% to 22%. He added that delays in onsite deployments are contributing to a 6-8% increase in project costs, while U.S. clients might further restrict technology budgets.

These figures align with broader industry insights. In FY2024, the U.S. represented 57% of the revenue for Indian IT firms. Some companies are even more vulnerable: Mphasis (82%), Persistent Systems (81%), LTIMindtree (75%), and HCL Tech (65%) depend heavily on U.S. clients.

The implications of this dependence are significant. Indian service providers are at risk of any economic, political, or regulatory disruption from Washington.

Kundu asserted that even if tariffs do not directly impact the industry, the mood and spending habits of clients can still be adversely affected. This alone has the potential to decelerate revenue growth and exert pressure on profit margins.

Indian IT corporations are making strides to diversify their markets—but this effort has been uneven. Early adopters have managed to decrease their U.S. reliance by 10 percentage points (from 62% to 52%), with notable revenue increases from Europe (11%) and the Middle East (18%). Nevertheless, the U.S. and Europe collectively account for over 80% of the sector’s exports.

This concentration leaves the industry vulnerable and exposed to unforeseen challenges.

Kundu concluded by stating that the true risk lies not in policy shifts but in concentration itself.

Understanding the Corporate Trap in India’s Tier-I Cities

The hefty salary associated with a Tier-I city job in India may appear appealing, but it often serves as a bait. A recent Reddit post suggests that urban corporate life in India is essentially a grand scheme, where the tax system drains personal income, property developers offer cramped living spaces on lengthy loans, and major e-commerce players push local kirana stores out of business.

It is asserted that the combination of corporate employment and life in Tier-I cities resembles a giant casino, in which the house always prevails. Although the initial experience might appear to involve high salaries and modern amenities, a deeper inspection reveals a sophisticated apparatus that keeps individuals ensnared in cycles of excessive work and consumption.

The Beneficiaries of the System

The first party reaping the rewards is the government, collecting over 30% of salaries in taxes, often without any corresponding benefits to citizen welfare. Following closely are real estate developers, promoting small living spaces at exorbitant prices, with repayment periods stretching across 20 years.

In terms of education and healthcare, the fees charged are increasingly aligned with the average income of the locality rather than quality of service provided. At the same time, e-commerce platforms that initially seem to enhance convenience may lead to the gradual disappearance of local competition, eventually resulting in inflated prices.

The Impact on Workers

As a consequence of this entrapment, professionals often find themselves feeling inadequately compensated despite salary increases. This results in a relentless pursuit of promotions, longer working hours, and neglecting crucial aspects of personal health and relationships. The repercussions include heightened stress levels, escalating medical expenses, and deteriorating family dynamics.

Curiously, companies report enhanced productivity, governments enjoy increasing tax revenues, and private healthcare continues to flourish. Thus, the post posits that even with rising income, it remains a zero-sum scenario for the individual.

A Path to Financial Freedom

However, the Redditor presents a solution beyond mere critique. They advocate for “delayed gratification,” which involves resisting lifestyle inflation, ignoring societal pressures, and constructing a financial safeguard through liquid investments.

Upon achieving financial independence, the strategy becomes clear: location arbitrage. By earning a substantial income in a Tier-I city and subsequently moving to a Tier-II or Tier-III town, individuals can make their money work harder for them, altering the game dynamics to their advantage.

A recent Reddit post from a returnee in the US discussing everyday rudeness in India has gained significant attention, igniting a wave of emotional responses among readers. The post, titled “The general rudeness in India gets on my nerves,” was created by an individual who moved back to India after spending over a decade in the United States.

Having settled in the National Capital Region (NCR) three months ago, the user described their difficulties in readjusting to Indian life, particularly concerning what they referred to as a “deeply ingrained” culture of unprofessionalism and impolite behaviour.

In their account, they referenced experiences at a well-known clinic in Delhi and an Aadhaar enrollment centre, noting that manners were only observed after managerial intervention. Even a request from a neighbour regarding a security camera seemed to be interpreted as “aggressive,” raising what the user identified as a widespread issue concerning tone and attitude.

The user remarked that they grew up in smaller cities across India, where people tended to be more courteous and welcoming. They suggested that perhaps their time in the US had softened them, or that it simply highlighted that basic politeness should not be a luxury.

Despite continuing to practise habits acquired in the US, such as saying “thank you” or “hi,” the user revealed that these gestures often received blank stares, forcing them to adapt and develop a “thicker skin.”

This post resonated with many online, receiving hundreds of replies from both Indians and members of the diaspora.

One commenter expressed a similar realisation, stating, “For all my life, I didn’t grasp what people meant when they said Indians lack civic sense. However, after a year in the US, I noticed the stark contrast — especially during flights back home, where fellow passengers became pushy, skipped lines, and intervened unnecessarily.”

Another contributor attributed the issue to broader socio-economic conditions, explaining, “Life isn’t easy for most Indians — low wages, extended hours, and familial pressures influence how people engage. If we are fortunate enough to enjoy a peaceful life, all we can do is strive to spread that positive energy.”

Others reflected on the behavioural changes necessary to navigate life in India. “During my two-month visit, I discovered that unless one is assertive — or even rude — others take advantage. It’s a harsh truth. I couldn’t manage in a society where I had to fight for basic services daily,” one individual shared.

While the post sheds light on the dissonance many encounter upon returning to India, it also opens up a broader discussion about empathy, civic duties, and the emotional toll of urban living in various metropolitan areas of the country.

Why Indian Nurses Are Leaving Ireland

A moving open letter from an Indian nurse residing in Ireland, initially posted on Reddit, has gained significant attention, prompting a public discussion about the experiences of migrant healthcare professionals in Ireland. The letter, titled “Why We’re Leaving Ireland,” reflects the disappointment experienced by numerous Indian workers who once viewed Ireland as a promising destination, now anxious about their families’ safety.

The unnamed writer, representing himself, his wife, and the larger Indian community, expresses deep concern over the increasing racism and hostility they’re encountering. He states that they came to Ireland to contribute to healthcare, yet now fear for their safety while returning home after shifts. The defining moment for him was observing a group of Irish teenagers harassing an eight-year-old Indian girl “simply because she appeared different.”

Challenges Faced by Indian Healthcare Workers

The nurse, along with many others, arrived in Ireland to support its crucial healthcare system. Numerous professionals contributed tirelessly during the height of the COVID-19 pandemic, often facing significant stress and personal sacrifices. The writer mentions, “We missed important family events back home to remain here and fulfil our responsibilities. We adhered to all regulations and paid our taxes… We thought this was a nation of compassion.”

However, that perception, he argues, is rapidly diminishing. The nurse indicates that numerous Indian nurses within his network are actively contemplating leaving Ireland, with some exploring opportunities in Australia or planning a return to India. He articulates, “If we leave, it’s not due to a lack of affection for this country. It’s because this country has ceased to show love towards us.”

Recent Incidents Raise Concerns

The letter arrives amid multiple reports of racially charged attacks against Indians and other South Asian immigrants in Ireland. In recent months, local media outlets and community organisations have recorded cases of verbal abuse, physical confrontations, and discriminatory treatment — both in public spaces and institutions.

In June, an Indian student was the victim of an assault in Dublin, characterised by advocacy groups as racially motivated. July saw a disturbing viral clip depicting another Indian man being pursued by a group of young people, while onlookers did not intervene.

Although authorities claim these incidents are not widespread, they are being increasingly highlighted by the Indian diaspora, particularly on platforms like Reddit, where anonymous submissions reveal the anxieties and grievances of immigrant life in Europe.

Demands for Change

This viral post has incited hundreds of reactions from users across Ireland and internationally. Many Irish individuals expressed empathy and denounced the rise in xenophobia, while others urged the Irish government to take action to alleviate the growing unease within migrant communities.

Healthcare unions and civil rights organisations are now advocating for the government to implement more robust measures to ensure the safety and dignity of immigrant workers on the frontlines.

As the anonymous nurse poignantly remarked in his closing thoughts: “We are not here to create divisions. We arrived because we believed Ireland was a nation that valued all individuals. Please help us see that belief realised.”

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Indian Woman’s Emotional Struggle Over Diwali Work Policy

An Indian woman recently expressed her frustration on social media, revealing that she became emotional during a meeting with her manager when she was obligated to work from the office on Diwali. She shared her experience in a Reddit post, stating that she is employed by an American multinational corporation in a hybrid work arrangement.

The post said, “At the end of the day, we are merely perceived as inexpensive labour, but it is disheartening to think that organisational policies do not reflect our humanity.” She highlighted the disparity in vacation policies, noting that employees in America and Europe are able to enjoy extended breaks during significant holidays like spring break, Thanksgiving, and Christmas.

Additionally, she noted that all her team members were required to work from the office during Diwali, with only 1-2 individuals absent on different days. The woman revealed her hope of returning to her hometown to work remotely that week.

“However, I was informed that I could not go because there needs to be someone present in the office. We have worked throughout the year, saving our days off for this special occasion, but now management insists we must be onsite,” she expressed.

She also recounted a heated discussion she had with her senior manager regarding her situation. “I ended up having an emotional argument with my senior manager, passionately insisting that I needed to return home. This is my only chance to do so,” she shared.

Moreover, she mentioned a colleague who opted to cancel their planned leave to attend work, believing that this would minimise the repercussions they would face.

Fellow Reddit users resonated with her experience, stating that the culture in Indian MNCs often operates around a 24/7 framework. Many shared similar experiences of working under demanding managers.

One commenter stated, “This is essentially the norm in Indian MNCs. While I sympathise with your situation, it is unlikely that you will find any relief here, as everything operates on a round-the-clock basis.”

Another user added, “Most Indian managers do not focus on optimal resource utilisation or timely project execution. Instead, they boast about the constant deployment of resources, which seems to be a futile exercise.”

“It is not a reflection on you; rather, it is about the approach taken by your managers. I am an Indian working in Germany, and our small team in Pune is often praised by management for their dedication to working during weekends and holidays,” a user commented.

“Work can always be postponed, but family time is irreplaceable. I often use the analogy of an airplane, indicating that both the captain and first officer must understand each other; without the manager’s support, the team could face serious consequences,” another user remarked.

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Gurugram’s Infrastructure Crisis: A Sharp Critique by Suhel Seth

Gurugram, despite being home to some of India’s wealthiest enterprises, is described as having “slumlike” infrastructure. Author and entrepreneur Suhel Seth expresses a direct critique regarding the country’s civil engineering standards, referring to them as “the worst.” This statement was made during a podcast with ANI, where Seth did not shy away from voicing his concerns.

Critique of Civil Engineering in India

According to Seth, India’s civil engineers have severely underperformed. He maintains that technology has been largely disregarded within civil planning and infrastructure, indicating an alarming lack of concern for progress and innovation.

A Comparative Insight with China

Seth contrasted India’s approach with that of China, recalling an experience with the British Airways advisory board during a trip to Beijing before the Olympics. He noticed a significant portion of the airport was already being developed, planned for completion in 2040, in stark contrast to India, which he argues still relies on outdated planning methodologies established in 1947.

Focus on Gurugram: A City of Contrasts

Seth specifically targeted Gurugram as a representation of the failures in India’s infrastructure. He pointed out that major corporations such as Coca-Cola, EY, Hero MotoCorp, Apollo, Max, and Fortis have their headquarters there. Yet, the city fundamentally lacks even the most basic infrastructure features. Seth describes it as surreal that some of the wealthiest individuals live in poorly constructed environments.

The Myths Surrounding Gurugram’s Growth

He criticized the narrative surrounding Gurugram’s development, claiming it did not arise from strategic government policy but rather from corporate growth and back-office operations initiated by GE and Genpact. The city’s rise was not a result of urban planning but rather a corporate spillover.

Ongoing Criticism of the NCR

This is not the first time Seth has directed criticism at the National Capital Region (NCR). In a recent post on X, he humorously commented on the persistent flooding issues in the area, likening it to “two Venices” existing next to each other—Gurugram and Delhi. He branded Gurugram as “a shame on this country” during a discussion panel hosted by The Indian Express.

The Reality of Urban Living in Gurugram

Seth elaborated on the living conditions in Gurugram, alluding to the annual flooding faced by residents. He remarked that the city often resembles a waterlogged paradise without any governmental assistance during these events. He pointed to striking issues like rubbish accumulation and the disturbing fact that liquor shops outnumber functioning traffic signals in the city.

The Call for Action

Seth proposed a “non-hostile takeover” aimed at reinforcing basic governance and accountability within Gurugram. He lamented that India has turned into “a country of suffering and sufferers,” urging for innovative leadership and a crucial renovation of urban planning in the nation.