http://www.thestreet.com/story/10854776/ohio-ban-threatens-indian-it-firms.html
Ohio governor bans outsourcing; India Inc. cries foul
By Karvy Global
Indian IT giants Infosys Technologies(INFY), Wipro(WIT) and Patni Computer Systems(PTI) face a challenge in the form of an outsourcing ban by the state of Ohio, particularly if it inspires other states to limit foreign outsourcing of government work.
In executive order last month, Ohio Governor Ted Strickland banned outsourcing of government IT and back-office projects to offshore locations such as India. The news comes as Indian IT companies are dealing with higher visa fees in the U.S.
“There are pervasive service delivery problems with offshore providers, including dissatisfaction with the quality of their services and with the fact that services are being provided offshore,” Strickland said in the executive order. The governor added that offshore outsourcing not only threatens jobs, but carries associated privacy and identity theft risks as well, according to Computer World.
The ban comes after it was discovered that Parago Inc., a Texas-based company hired by Ohio Department of Development to monitor a rebate program for new energy-efficient appliances, used call center workers in El Salvador. This prompted Governor Strickland to pass this order, in a bid to pre-empt further use of public funds for offshore services.
Amanda Wurst, a spokesperson for Strickland, told Computer World Friday that the state of Ohio upholds the policy that public funds should not be spent on offshore services.
Tata Consultancy Services (TCS) is the only Indian company operating in Ohio, where it employs 400 people. The company receives tax credits and other incentives worth $19 million for creating local jobs. In fact, in November 2007, Governor Strickland had asked TCS to open a delivery center in Ohio. TCS reports that it has 10,700 foreign employees, and of that number, 7% are Americans.
Commenting on Tata, Wurst told Computer World, “The governor worked hard to bring Tata Consultancy to Ohio, where the company is making investments and creating jobs for Ohio workers. That’s called insourcing, for which the governor makes no apologies. Similarly, he makes no apologies for his longstanding opposition to the outsourcing of Ohio jobs.”
Ohio Governor Ted Strickland has banned outsourcing, arguing that this undermines economic development and has unacceptable business consequences for his state. Bravo it is a very good start the outsourcing not only needs to be baned in Ohio yet all fifty American States must follow in the foot steps of Governor Strickland’s foot steps.
“Outsourcing jobs does not reflect Ohio values,” Strickland said in a statement after he signed an executive order banning outsourcing. Reacting to the order, the Indian IT sector, which gets 60 per cent of its export revenue from the US, termed the move as discriminatory and said it amounts to a trade barrier. As a matter of fact Outsourcing jobs does not reflect AMERICAN VALUES
The move, which comes ahead of US President Barack Obama’s visit to India in November, follows a controversial legislation that increased H-1B and L1 visa fees, hitting India’s over USD 50 billion IT industry. Nothing is free in America if you want to travel to THE GOOD OLD USA to conduct your business then you have to pay for it.
My Comments:
Ohio Governor Ted Strickland has banned outsourcing, arguing that this undermines economic development and has unacceptable business consequences for his state. Bravo it is a very good start the outsourcing not only needs to be baned in Ohio yet all fifty American States must follow in the foot steps of Governor Strickland’s foot steps.
“Outsourcing jobs does not reflect Ohio values,” Strickland said in a statement after he signed an executive order banning outsourcing. Reacting to the order, the Indian IT sector, which gets 60 per cent of its export revenue from the US, termed the move as discriminatory and said it amounts to a trade barrier. As a matter of fact Outsourcing jobs does not reflect AMERICAN VALUES
The move, which comes ahead of US President Barack Obama’s visit to India in November, follows a controversial legislation that increased H-1B and L1 visa fees, hitting India’s over USD 50 billion IT industry. Nothing is free in America if you want to travel to THE GOOD OLD USA to conduct your business then you have to pay for it.
