The US imported nearly $120 billion in software services from India alone in FY26, pushing America’s share of India’s software exports to 54.1%, while the US spent $80.3 billion on telecommunications, computer, and information services overall in 2025 and President Trump extended a $100,000 fee on new H-1B visa applications through September 2027. India’s total software services exports crossed $239 billion in FY26, up 9.5% year-over-year, according to a Reserve Bank of India survey released this week.
Software Services Imported by US 2026
Software Services Imported by US refers to the money American companies and consumers pay to foreign providers for computer programming, IT consulting, cloud hosting, technical support, and related digital work, a category the Bureau of Economic Analysis (BEA) tracks under “telecommunications, computer, and information services.” This figure sits within the broader US services trade account, which also includes travel, transport, financial services, and intellectual property charges, but the computer services line has become one of the fastest-growing categories precisely because so much software development, IT outsourcing, and technical support work can now be delivered remotely from anywhere in the world. Unlike goods imports, which show up as physical shipments at ports, software services imported by US companies typically arrive as invoices from offshore development teams, outsourcing firms, and cloud providers based in countries with large, English-proficient technical workforces.
India and Ireland dominate this trade for very different reasons. India built a decades-long IT outsourcing industry around cost-effective software development and business process work, exporting the majority of its software services output directly to US clients. Ireland, by contrast, hosts the European headquarters and cloud infrastructure of many major US technology companies, meaning a large share of its computer services trade actually reflects intra-company transactions between American multinationals and their own Irish subsidiaries. Understanding Software Services Imported by US in 2026 requires tracking both this country-level trade data and the immigration policy environment, since a large share of these services have historically been delivered by temporary visa holders working inside the US rather than purely through offshore contracts.
Interesting Facts About Software Services Imported by US in 2026
| Fact | Detail |
|---|---|
| US Software Imports from India (FY26) | ~$120 billion, 54.1% of India’s total software exports |
| India’s Total Software Exports (FY26) | $239 billion, up 9.5% year-over-year |
| US Telecom/Computer/Info Services Imports (2025) | $80.3 billion |
| Growth from 2024 | +10.6% (from $72.6 billion) |
| Total US Services Imports (2025) | $895.4 billion |
| India’s Share of Approved H-1B Petitions (FY2024) | 71% |
| New H-1B Visa Application Fee | $100,000, extended through Sept 21, 2027 |
| Software Exports Delivered Off-Site (India, FY26) | 91.7% |
The scale of Software Services Imported by US activity reflects just how deeply embedded offshore technical talent has become in the American economy. The $80.3 billion the US spent on telecommunications, computer, and information services in 2025 represents one of the more consistently growing lines within the broader $895.4 billion total services import bill, expanding every year since at least 2021, when the category stood at just $58.9 billion. That growth has occurred even as immigration policy toward the workforce delivering much of this work has tightened dramatically, creating a genuine tension between rising demand for offshore technical services and rising barriers to bringing that talent onshore.
The immigration side of this story reached a new inflection point just this week: President Trump signed a proclamation on September 18, 2026, extending the $100,000 H-1B application fee first imposed in September 2025 for another full year, through September 21, 2027. Because Indian nationals represented 71% of all approved H-1B petitions in fiscal year 2024, this policy bears disproportionately on the country that also supplies the largest share of America’s offshore software services. Major Indian IT firms have already responded by sharply curtailing their H-1B usage, with Tata Consultancy Services reportedly filing for only about 500 new visas in its most recent fiscal year, down from more than 11,000 in FY2021 and over 5,500 active holders in 2025.
Total US Software Services Imports Overview 2026
US Telecom/Computer/Information Services Imports (2021-2025)
2021 ████████████████████████████░░░░░░░░░░░ $58.9B
2022 █████████████████████████████░░░░░░░░░░ $60.7B
2023 █████████████████████████████████░░░░░░ $66.1B
2024 ████████████████████████████████████░░░ $72.6B
2025 ████████████████████████████████████████ $80.3B
$0 $20B $40B $60B $80B
| Year | Imports (Telecom/Computer/Info Services) | Change |
|---|---|---|
| 2021 | $58.9 billion | — |
| 2022 | $60.7 billion | +3.2% |
| 2023 | $66.1 billion | +8.9% |
| 2024 | $72.6 billion | +9.8% |
| 2025 | $80.3 billion | +10.6% |
Source: US Bureau of Economic Analysis, International Transactions Accounts
US imports of telecommunications, computer, and information services, the BEA category that most directly captures software services purchased from foreign providers, reached $80.3 billion in 2025, continuing an unbroken upward trend since at least 2021. The growth rate has actually accelerated in recent years, climbing from 3.2% between 2021 and 2022 to 10.6% between 2024 and 2025, a pace that outstrips growth in many other major services import categories. This acceleration lines up with the broader trend of US companies expanding cloud infrastructure spending, offshore software development, and IT support contracts even as overall economic growth has moderated.
Within US export data, the same broad category showed exports growing even faster in percentage terms in 2024, up $11.9 billion, reflecting that the US remains a net exporter of many high-value computer services, such as cloud platforms and enterprise software, even while importing large volumes of lower-cost development and support labor from countries like India. This dual pattern, exporting sophisticated platform services while importing labor-intensive development and support work, is one of the defining features of how software services trade actually flows between the US and the rest of the world.
US Total Services Imports Statistics 2026
US Services Imports by Category (2025, Selected)
Total Services Imports ████████████████████████████████████ $895.4B
Telecom/Computer/Info Services ███░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░ $80.3B
(9.0% of total services imports)
| Metric | Value |
|---|---|
| Total US Services Imports (2025) | $895.4 billion |
| Increase from 2024 | +$54.5 billion |
| Total US Services Imports (2024) | $814.4 billion |
| Telecom/Computer/Info Services Share of Total | ~9.0% |
Source: US Bureau of Economic Analysis, U.S. International Trade in Goods and Services, Annual 2025
Total US imports of all services categories combined reached $895.4 billion in 2025, an increase of $54.5 billion from $814.4 billion in 2024, according to BEA’s annual trade release. Within that total, telecommunications, computer, and information services accounted for roughly 9% of all services imports, a smaller slice than categories like travel, transport, or “other business services,” but one of the fastest-growing segments in percentage terms. The US actually runs an overall surplus in cross-border commercial services trade, exporting $1.1 trillion against importing roughly $815 billion in 2024 alone, meaning software services form a rare deficit-leaning category within an otherwise services-trade-surplus economy.
This distinction matters for understanding the political debate around outsourcing and offshore IT work. Because the US remains the world’s largest cross-border exporter of commercial services, representing 12.8% of the global $8.8 trillion total in 2024, policy discussions about software services imports tend to focus less on the overall trade balance and more on domestic labor market effects, particularly the use of temporary work visas to deliver these services onshore rather than purely through offshore contracts.
Top Countries Supplying Software Services to the US 2026
Top Sources of US Commercial Services Imports (2024, All Categories)
United Kingdom ████████████████████████████████████ $92.2B (11.3%)
Canada ████████████████████████░░░░░░░░░░░░ $56.8B (7.0%)
Bermuda ███████████████████████░░░░░░░░░░░░░ $55.8B (6.8%)
Mexico ███████████████████░░░░░░░░░░░░░░░░░ $45.1B (5.5%)
$0 $30B $60B $90B
| Country | US Services Imports (2024) | Share of Total |
|---|---|---|
| United Kingdom | $92.2 billion | 11.3% |
| Canada | $56.8 billion | 7.0% |
| Bermuda | $55.8 billion | 6.8% |
| Mexico | $45.1 billion | 5.5% |
Source: US International Trade Commission, Recent Trends in U.S. Services Trade, 2026 Dashboard
Looking at all commercial services combined rather than the computer-services category alone, the United Kingdom was the single largest source of US services imports in 2024, at $92.2 billion (11.3%) of the total, followed by Canada ($56.8 billion, 7.0%), Bermuda ($55.8 billion, 6.8%), largely reflecting insurance and reinsurance services, and Mexico ($45.1 billion, 5.5%). These figures cover the full range of services categories, including financial services, insurance, travel, and transport, not computer services specifically, since the US government does not publish a single consolidated country-by-country breakdown limited only to the telecommunications, computer, and information services line.
For the software and IT services subset specifically, industry and partner-country data point to a different leaderboard than the all-services ranking above. Historical BEA-sourced data shows India held as much as 42% of the US computer and data-processing services import market as far back as 2012, when that category totaled $23.8 billion, and India’s own trade data confirms it has maintained that dominant position since, a pattern explored further in the following sections on India and Ireland specifically.
India’s Software Services Exports to the US 2026
India's Software Exports by Destination (FY26, RBI Survey)
United States ████████████████████████████████████████ 54.1% (~$120-129B)
Europe ████████████████████████░░░░░░░░░░░░░░░░ 31.8%
of which UK ████████████░░░░░░░░░░░░░░░░░░░░░░░░░░░░ 15.4%
| Metric | Value |
|---|---|
| India’s Total Software Exports (FY26) | $239 billion, up 9.5% year-over-year |
| US Share of India’s Software Exports (FY26) | 54.1%, up from 52.9% in FY25 |
| US-Bound Software Exports (FY26) | ~$120 billion (reported), ~$129 billion (implied by share) |
| Europe’s Share | 31.8%, including the UK at 15.4% |
| USD Share of Invoicing Currency | 72.6% |
| Software Exports Delivered Off-Site | 91.7% |
| RBI Survey Coverage | 7,569 software-export companies surveyed, 2,363 responded |
Source: Reserve Bank of India, FY26 Software Exports Survey, released September 2026
A newly released Reserve Bank of India survey shows India’s total software services exports crossed $239 billion in FY26, up 9.5% year-over-year, with the United States accounting for 54.1% of that total, a share that has climbed from 52.9% in FY25. That US share translates to roughly $120-129 billion in US-bound software services depending on the specific base figure applied, making the United States by a wide margin India’s single largest software services customer, well ahead of Europe’s 31.8% share, of which the United Kingdom alone represents 15.4%. This increase in US concentration is notable precisely because it occurred in the same fiscal year the $100,000 H-1B fee took effect, suggesting that at least so far, the fee has not measurably reduced the dollar value of software work flowing to US clients, even as it has reshaped how that work gets delivered.
The RBI survey, which covered 7,569 software-export companies with 2,363 responding, also found that 91.7% of India’s software exports were delivered through off-site mode, meaning work performed remotely from India rather than by staff physically present at a client’s location, and that the US dollar remained the dominant invoicing currency at 72.6% of transactions, followed by the euro (9.6%), the Indian rupee (6.3%), and the British pound (6%). That overwhelming off-site delivery share is itself a significant data point for understanding the H-1B story: it confirms that the vast majority of India’s software services business with the US already happens without visa-dependent, on-site staffing, meaning the fee’s disruption falls on a comparatively narrow, if historically important and high-visibility, slice of the overall trade relationship.
This deep dependence on the US market is precisely what makes 2026’s H-1B visa fee extension so consequential for India’s IT sector, even if the aggregate export figures have so far held up. The industry’s traditional model relied heavily on flying Indian engineers to US client sites on H-1B visas to manage projects on-site, a practice that built decades of client trust and embedded relationships between Indian outsourcing firms and American corporations. With that channel now costing $100,000 per new application, analysts widely expect the industry to accelerate its multi-year shift toward delivering even more work remotely from India itself, a transition covered further in the H-1B section below. That onshore presence has also made Indian professionals one of the largest skilled-worker populations living in the US, a trend detailed further in the report on the largest foreign-born group in the US.
Ireland’s Software Services Exports to the US 2026
Ireland's Computer Services Exports vs. Total Services (2024)
Computer Services Exports (Global) ████████████████████████████████ €278.7bn
Total Services Exports to US ██████░░░░░░░░░░░░░░░░░░░░░░░░░░ €62.3bn
| Metric | Value |
|---|---|
| Ireland’s Computer Services Exports (Global, 2024) | €278.7 billion |
| Ireland’s Total Services Exports to the US (2024) | €62.3 billion |
| Ireland’s Services Trade Surplus (2024) | €59.7 billion, up from €18.6bn in 2023 |
| Ireland’s Services Imports from the US (2024) | €217.8 billion |
Source: Ireland Central Statistics Office (CSO), International Trade in Services 2024
Ireland presents a different picture from India’s outsourcing-driven model. Computer services exports totaled €278.7 billion in 2024, Ireland’s single largest services export category by a wide margin, and Ireland’s overall services exports to the US rose to €62.3 billion that year, up from €52.8 billion in 2023. Much of this reflects the European headquarters and cloud infrastructure operations of major American technology companies based in Ireland for tax and regulatory reasons, meaning the “export” figure captures intra-company service flows moving back to US parent companies as much as it captures independent commercial software contracts.
Ireland’s overall trade relationship with the US in services is notably lopsided in the opposite direction from the goods trade relationship: while the US runs a large goods deficit with Ireland, Ireland actually imported €217.8 billion in services from the US in 2024, driven substantially by a €24.2 billion increase in royalty and licensing payments, the fees Irish-based subsidiaries pay to their US parent companies for intellectual property rights. This two-way flow of computer services and royalty payments between the US and Ireland illustrates how the “software services imported by US” category can obscure more complex corporate structures than a simple country-to-country trade ranking might suggest.
H-1B Visa Fee Impact on Software Services Imports 2026
H-1B Visa Policy Timeline and Impact
Sept 2025 ████████████████████████████████████████ $100K fee first imposed
June 2026 ██████████████████████████████░░░░░░░░░░ Federal judge strikes down order
Sept 2026 ████████████████████████████████████████ Fee extended through Sept 2027
| Metric | Value |
|---|---|
| H-1B Fee | $100,000 per new application |
| Effective Date | September 21, 2025; extended September 18, 2026 |
| Extension Period | Through September 21, 2027 |
| India’s Share of Approved H-1B Petitions (FY2024) | 71% |
| China’s Share | ~12% |
| H-1B Registration Drop, Large IT/Outsourcing Firms | -92% |
Source: White House proclamation, September 18, 2026; USCIS FY2024 H-1B data; The Week, September 19, 2026
President Trump signed a proclamation on September 18, 2026, extending the $100,000 H-1B application fee for another 12 months, through September 21, 2027, keeping in place one of his administration’s most significant skilled-immigration policies despite a federal judge in Massachusetts having ruled in June 2026 that the original order exceeded the administration’s authority. Because beneficiaries born in India represented 71% of all approved H-1B petitions in fiscal year 2024, with China a distant second at roughly 12%, the policy’s impact concentrates heavily on the same country that supplies the largest share of America’s offshore software services. White House data shows H-1B registrations from large IT companies and outsourcing firms have fallen 92% since the fee took effect, with the administration framing this as evidence the policy is successfully shifting demand toward higher-paid, higher-skilled applicants rather than lower-cost outsourcing placements.
Tata Consultancy Services, India’s largest IT exporter, illustrates the scale of the shift: the company filed for only about 500 new H-1B visas for US-bound employees in its most recent fiscal year, down from 5,500 active visa holders in 2025 and from 11,212 total applications in FY2021. Industry analysts at Forrester project that maintaining existing H-1B-dependent staffing models would cost the largest IT service providers an additional $500 million annually in fees, a burden expected to accelerate three trends already underway: increased onshore hiring of US-based staff, expanded nearshore delivery centers in Latin America and Canada, and a deeper shift toward remote delivery from India itself, which would show up as increased software services imports rather than in-person visa-based staffing. For a broader view of how this fits within US wage and labor market data, the report on average salary statistics in the US provides comparative context on technology-sector compensation trends during this period of visa policy disruption.
Outlook: Reshoring, Nearshoring, and Remote Delivery Trends 2026
| Expected Trend | Direction |
|---|---|
| Onsite IT Service Cost Increase | +2-3% (estimated) |
| H-1B-Dependent Staffing | Declining sharply |
| Offshore/Remote Delivery from India | Increasing |
| Nearshore Delivery Center Investment | Increasing |
Source: Forrester Research, “The Long-Term Impact of the $100,000 H-1B Fee,” 2026
Forrester’s analysis of the H-1B fee’s long-term effects projects a 2-3% increase in onsite IT service delivery costs as providers curtail visa-dependent staffing models, a cost that will likely be passed through to the US businesses that rely on these contracts. Rather than simply absorbing the cost of $100,000-per-visa staffing, most large IT service providers are expected to accelerate investment in local US hiring, expand nearshore delivery hubs, and lean more heavily on automation, while simultaneously routing more actual development and support work through purely offshore contracts delivered from India, Eastern Europe, or the Philippines rather than via visa holders physically present in the US.
This shift carries an important, somewhat counterintuitive implication for the software services imported by US trade data described throughout this report: policies designed to reduce reliance on foreign labor working inside the US could, paradoxically, increase the dollar value of software services formally recorded as “imports,” since offshore contract work delivered remotely counts as a services import in BEA’s accounting framework, while a worker physically present in the US on an H-1B visa delivering the same work does not generate a comparable services trade entry. As Indian and other outsourcing firms adapt their delivery models over the coming year, this report’s core import figures, currently at $80.3 billion and rising, may continue climbing even as the on-the-ground presence of foreign IT workers inside the United States declines. This services-specific dynamic sits alongside the much larger goods trade imbalances the US runs with its major partners, covered in greater depth in the report on US trade deficit by country statistics.
Frequently Asked Questions
How much does the US spend on software services imports each year?
The US imported $80.3 billion in telecommunications, computer, and information services in 2025, up from $72.6 billion in 2024, according to the Bureau of Economic Analysis.
Which country supplies the most software services to the US?
India is the dominant supplier. A Reserve Bank of India survey released in September 2026 found the US accounted for 54.1% of India’s $239 billion in FY26 software exports, roughly $120 billion in US-bound software services, up from a 52.9% share in FY25.
What is the H-1B visa fee in 2026?
The H-1B visa application fee is $100,000 for new petitions, a policy first imposed in September 2025 and extended by President Trump on September 18, 2026, through September 21, 2027.
How many H-1B visas go to Indian nationals?
Indian nationals represented 71% of all approved H-1B petitions in fiscal year 2024, according to USCIS data, far ahead of China’s roughly 12% share.
Has the H-1B fee reduced visa usage by IT outsourcing firms?
Yes. White House data shows H-1B registrations from large IT companies and outsourcing firms fell 92% after the fee took effect, and Tata Consultancy Services reduced its new H-1B filings to about 500 in its most recent fiscal year, down from over 11,000 in FY2021.
What is the total US trade deficit or surplus in services?
The US actually runs an overall surplus in commercial services trade, exporting $1.1 trillion against importing about $815 billion in 2024, though software and computer services specifically remain a deficit-leaning category.
How does Ireland’s software services trade with the US differ from India’s?
Ireland’s computer services exports largely reflect intra-company transactions from US tech firms’ European headquarters based in Ireland, while India’s exports stem primarily from independent IT outsourcing and consulting contracts with US clients.
What is India’s total IT and software industry worth?
India’s IT and business process management industry is valued at approximately $283 billion, according to Nasscom, with the sector projected to approach $350 billion by 2026.
Will the H-1B fee increase the cost of IT services for US companies?
Forrester Research projects onsite IT service delivery costs could rise 2-3% as providers shift away from H-1B-dependent staffing toward local hiring, nearshoring, and offshore remote delivery.
Could the H-1B fee actually increase recorded software services imports?
Potentially, yes. Work that shifts from being delivered by an H-1B visa holder physically present in the US to being delivered remotely from an offshore location would newly count as a services import in US trade data, even though total demand for the work has not changed.
Disclaimer: The data research report we present here is based on information found from various sources. We are not liable for any financial loss, errors, or damages of any kind that may result from the use of the information herein. We acknowledge that though we try to report accurately, we cannot verify the absolute facts of everything that has been represented.
