Sources said the Indian companies have been asked to submit a progress report of the current projects outsourced to them by the US government. The contracts will be reviewed over a period of four months, sources added.
The US government contracts account for about 3.2-3.5% of exposure to Indian tech giants.
At present, Cognizant, Tata Consultancy Services and Infosys are among Indian firms working on US government contracts.
This is yet another move in Trump’s efforts to try and keep jobs at home in keeping with his election pitch of ‘Buy American, Hire American’.
In April, Trump had signed an executive order to tighten the rules of the H-1B visa programme to stop "visa abuses".
The H-1B is a non-immigrant visa that allows US companies to employ foreign workers in speciality occupations that require theoretical or technical expertise in specialised fields. Indian technology companies depend on it to hire tens of thousands of employees each year for their US operations.