Both are facing growing pressure from new rivals selling cheaper services.
The proposal will impact US-based companies like IBM, Hewlett Packard, Microsoft and Oracle that have overseas operations in countries like India.
Most large American companies earn more than 50 per cent of their revenue from markets outside the US and will be affected by the proposed tax reforms. Business groups in the US had assailed the proposal, arguing it would subject them to far higher taxes than their foreign competitors must pay and ultimately endanger US jobs. Global companies that earn profits in India are subject to a tax rate of 33.9 per cent and the impact of the proposed reforms on them would be marginal.
Even as the H1-B cap for the year was reached for regular and 'advanced degree' students, the Department of Homeland Security announced an extension of the Optional Practical Training period up to 29 months.
Trump signed executive orders on August 6 that would prevent TikTok and WeChat from operating in the US as they threatened America's national security and economy.
Their plan to build a product portfolio will discourage global software vendors such as Oracle, Microsoft and Fidelity, among others, from building a strategic relationship with these big Indian IT firms, reports Debasis Mohapatra.
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