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The 2025 HIRE Act (Halting International Relocation of Employment Act) is a proposed US law aimed at discouraging offshoring by imposing a 25% excise tax on any payment from American companies to foreign workers or service providers whose work benefits US consumers. It also disallows usual tax deductions on these payments and would channel the revenue into a Domestic Workforce Fund for apprenticeships and reskilling. Though still uncertain if it will pass, the bill signals a shift in Washington’s stance on global labour arbitrage.
For Global Business Services (GBS) and BPOs that rely heavily on lower-cost labour in markets like India, the Act could significantly raise costs, complicate compliance, and force strategic shifts. Scenarios include forced reshoring of work, increased compliance burden, contractual workarounds, and a domestic talent shortage that the US workforce may struggle to fill. GBS organisations are urged to scenario-plan, map their offshore exposure, and build stronger domestic workforce strategies rather than dismiss the proposal.
Like the earlier FATCA law that quietly reshaped global finance, the HIRE Act could similarly transform how services are delivered globally. The piece positions the Act as both a threat and a wake-up call for GBS leaders to engage with policy and adapt their operating models.
