US state Ohio bans outsourcing of government IT projects
08 Sep 2010
The US state of Ohio has banned outsourcing of government IT projects to offshore destinations including India.
The move would hit Indian companies whose revenues from the US account for more than 50 per cent of their total revenues. Many Indian companies had shifted focus to the government sector following the recession and the move may likely end up throwing a spanner in the new strategy.
According to Kris Gopalakrishnan, CEO of India's second largest IT company Infosys, the company was concerned by the move.
In a statement to NDTV, Gopalakrishnan, said the move amounted to putting up a protectionist barrier.
Unemployment has reached a record high of 9.6 per cent in the US sparking concerns about the pace of recovery in the largest economy in the world.
US president Barack Obama had only last moth cleared a new law proposing a steep hike in certain categories of H-1B and L-1 visa fees. The Indian government had threatened to take the US to the World Trade Organization (WTO) over the new law on grounds of unfair targeting of Indian companies.
