India’s influence in the U.S. tech job market has grown significantly, with positions being shifted overseas through relocation, telework, and special visas. This change has pushed many Americans out of the tech sphere, reduced job opportunities, lowered salaries, and drained the U.S. of its technical prowess as companies seek cheaper labor abroad. These developments have sparked concern among American workers and policymakers who worry about the long-term impacts on the nation’s workforce.
At the White House AI Summit in July 2025, President Donald Trump took a firm stance against this trend. He called on American tech leaders to stop hiring abroad, specifically mentioning India and China as primary destinations for these jobs. Trump criticized large corporations for enjoying American freedoms while constructing factories in China, employing Indian workers, and hiding profits overseas.
The President’s message was clear: “End corporate outsourcing” and “bring jobs back from India and China.” To support this agenda, Trump revealed a 28-page AI Action Plan, featuring more than 90 policy initiatives aimed at reestablishing America’s prominence in AI and creating thousands of domestic jobs. The plan emphasizes accelerating permits for data centers and chip fabrication plants, training skilled trades for AI infrastructure, and limiting federal contracts to politically neutral AI vendors.
Alongside this, Trump signed three executive orders to boost AI development. These include a national strategy for AI advancement, a mandate for neutrality in federally funded AI projects, and increased support for American-made AI tools. These moves mark a significant shift from previous years of offshoring, potentially disrupting India’s thriving tech sector.
Trump concluded his remarks by emphasizing the need for “a new spirit of patriotism and national loyalty in Silicon Valley and beyond.” Data supports his concerns, showing that a senior developer in California might earn $150,000 or more, while the equivalent role in India ranges from $20,000 to $40,000. Research indicates that when offshore salaries are about 10% lower than U.S. levels, offshore employment grows 13.1 percentage points faster than domestic employment.
Outsourcing has evolved from the early 2000s wave of call centers to include high-skill roles like software development, finance, legal operations, and more. The pandemic expedited this change, with U.S.-headquartered multinationals expanding their offshore workforce by 32% since 2019, compared to a 16.7% increase in their U.S.-based teams. An estimated 300,000 tech jobs have been outsourced to India, playing a crucial role in the American tech ecosystem.
In fiscal year 2023, Indian nationals received 72.3% of the 386,000 H-1B visas issued, highlighting the U.S.’s reliance on Indian STEM talent. The top 30 H-1B employers brought in over 34,000 new workers in 2022, representing 40% of the total annual cap, while simultaneously laying off at least 85,000 American employees. This trend suggests that domestic workers are being replaced as companies expand their use of foreign labor.
Research reveals that 60% of H-1B positions are set at wage levels below the local median, with salaries for computer roles averaging 17% to 34% less than local pay. Major tech corporations, such as Amazon, Google, and Microsoft, utilize this program to hire at reduced rates, contributing to wage suppression. From 2019 to 2023, median weekly earnings for computer and mathematics roles increased just 0.27% after inflation, while those in engineering and architecture fell by 3.53%.
The practice of offshoring and replacing entry-level jobs, like junior analysts, associates, or developers, not only depresses wages but also weakens career growth, creating a “missing middle” in domestic skill development. In 2023, U.S. colleges produced 134,153 computer science graduates who were citizens or green card holders, yet the federal government issued over 110,000 work visas for the same field. This situation has intensified competition for entry-level positions, making it more challenging for American graduates to find employment.
While the debate over outsourcing continues, it’s clear that the current trajectory poses a significant challenge to the American workforce. The impact on wages and job availability is undeniable, and the call to bring jobs back to the U.S. is gaining momentum. As these dynamics unfold, the future of the U.S. tech industry hangs in the balance.
