Indian IT companies and industry associations are increasingly alarmed by a proposed rule from the US Federal Communications Commission (FCC) that seeks to restrict the use of offshore call centers by American firms. The rule, released on March 26, aims to address consumer protection and national security concerns by potentially capping the share of calls that can be routed to foreign centers and requiring workers at those centers to prove proficiency in American Standard English. The FCC has indicated a possible 30% cap on call volumes directed to offshore centers, but this figure remains open for public comment until May 26. Indian technology industry body NASSCOM plans to contest these proposals, arguing that the distinction should be made between trusted providers and bad actors, rather than between onshore and offshore operations. NASSCOM's vice president, Shivendra Singh, emphasized that overly broad restrictions could lead to unintended consequences, such as higher prices and lower service quality. The FCC's proposals come as Indian IT firms are already facing challenges from US policies, including increased visa fees and proposed taxes on services payments to foreign entities. These developments could significantly reshape the outsourcing landscape, which has been vital for India's economy.