News Desk: Breaking News! Showing the dissatisfaction over the quality of the IT projects, the US state of Ohio has banned outsourcing of government IT projects to offshore locations including India.
The move is believed to be another blow to the Indian IT industry and outsourcing industry after the higher cost for visa, raising the fears: Will other US states follow Ohio?
The move came after Ohio Governor Ted Strickland issued an order, last month, stating the service delivery problems with offshore providers and questioned the quality of the services. He said, Outsourcing jobs does not reflect Ohio values and people of Ohio have been worst affected by the outsourcing.
As the Indian tech industry is largely benefited by the American firms, such move may affect Indian aspirants who are keen to move to the US with low wages and top-quality skills.
Tata Consultancy Services (TCS) is the only Indian company to operate in Ohio with 300 employees and gets $19 million in tax credit for creating local jobs. According to analysts, TCS will be badly affected due to such move by Ohio government. Other companies like Infosys and Wipro also raise their fear as they have outsourcing contracts with the US.
Earlier, the state of New Jersey had also tried to restrict IT outsourcing by passing a law in 2005.
However, it is reported that Last month, the US Congress had passed a controversial legislation increasing the fees for H-1B visa, which stands as a barrier to the outsourcing. Indian companies earn around $ 50 billion a year in revenue from export of IT and BPO services.
The move is believed to be another blow to the Indian IT industry and outsourcing industry after the higher cost for visa, raising the fears: Will other US states follow Ohio?
The move came after Ohio Governor Ted Strickland issued an order, last month, stating the service delivery problems with offshore providers and questioned the quality of the services. He said, Outsourcing jobs does not reflect Ohio values and people of Ohio have been worst affected by the outsourcing.
As the Indian tech industry is largely benefited by the American firms, such move may affect Indian aspirants who are keen to move to the US with low wages and top-quality skills.
Tata Consultancy Services (TCS) is the only Indian company to operate in Ohio with 300 employees and gets $19 million in tax credit for creating local jobs. According to analysts, TCS will be badly affected due to such move by Ohio government. Other companies like Infosys and Wipro also raise their fear as they have outsourcing contracts with the US.
Earlier, the state of New Jersey had also tried to restrict IT outsourcing by passing a law in 2005.
However, it is reported that Last month, the US Congress had passed a controversial legislation increasing the fees for H-1B visa, which stands as a barrier to the outsourcing. Indian companies earn around $ 50 billion a year in revenue from export of IT and BPO services.
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