Beyond the US: Trade and Visa Uncertainty Puts Diversification on the Agenda for Indian SIs and MSPs

India’s systems integrators (SIs) and managed service providers (MSPs) face a strategic question as trade and immigration tensions with the United States continue: how to protect existing business while building growth opportunities less exposed to policy changes.
India has criticised the latest US measures affecting certain technology companies’ participation in the Permanent Labor Certification, or PERM, programme. The Ministry of External Affairs said the action did not advance the two countries’ shared ambitions and stressed the mutual benefits of skilled talent mobility. The distinction is important: PERM concerns employment-based green-card sponsorship, and its suspension does not, by itself, invalidate existing H-1B visas. The immigration developments coincide with unresolved trade negotiations. Finance Minister Nirmala Sitharaman has described India–US discussions as reaching a plateau, with limited room for further concessions. Continued uncertainty makes long-term planning more difficult for businesses with significant exposure to the American market.

For SI and MSP founders, the risks vary by business model. Companies exporting hardware need to assess product-specific tariffs, while providers deploying engineers to US customer sites must examine immigration requirements and staffing continuity. Businesses delivering services remotely from India should review customer concentration, contractual obligations and any dependence on overseas personnel. From a business strategy perspective, diversification needs to extend beyond delivery locations. Establishing another offshore centre may improve operational flexibility, but it does not reduce dependence on US demand if American customers still account for most revenue. Building customer relationships across the UK, Europe, the Gulf and Asia could broaden revenue sources, although each market brings its own regulatory requirements, procurement practices and entry costs.
Indian channel businesses can also strengthen their position through repeatable managed services and proprietary capabilities in cybersecurity, cloud operations and AI implementation. These investments could help founders build recurring revenue and reduce reliance on business models that require frequent movement of engineers across borders.

At the government level, India has preserved options for trade countermeasures. In May 2025, it notified the WTO of proposed counter-duties responding to US steel and aluminium tariffs. That notification, however, is not confirmation that the proposed duties were implemented. For the SI and MSP community, a constructive policy response would combine negotiations for predictable market access with practical support for overseas expansion. Trade missions, export guidance and assistance with international procurement and compliance could help smaller providers enter new markets. Any retaliatory action would also need to consider the costs borne by Indian businesses purchasing technology and equipment.

For founders, the immediate priority is to understand their exposure and strengthen delivery continuity. Over time, a broader customer base and distinctive technical capabilities could give Indian SIs and MSPs greater commercial resilience—and a stronger negotiating position.