"If the legislation is passed as currently proposed, it would greatly limit the ability for many India-centric service providers to deploy specific resources in the US," Gartner VP and distinguished analyst Frances Karamouzis said. He added that costs for American enterprises with offshore outsourcing contracts would go up due to increased bill rates.

The proposal comes at a time when the USD 100-billion domestic IT industry is struggling to recapture the high double-digit revenue growth rates it witnessed a few years ago.

Currently, TCS gets about 52 per cent of its overall business from North America, while Infosys earns 63 per cent of its total revenue from the region. The US-based Cognizant, which has about 75 per cent of its 1.62 lakh employees in Chennai, gets 79 per cent of its total revenue from North America.

The bill also proposes to increase the wages of workers with H1-B visa permits, which may force companies to deploy fewer professionals on-site in foreign locations, Gartner said.

"This may also cause a supply and demand imbalance, resulting in potential service disruption for both users of offshore and those sourcing domestically," Karamouzis said.

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