Indian trade body objects to Ohio offshore outsourcing ban

The move by Ohio follows a hike in U.S. visa fees, raising Indian fears of protectionism

India's National Association of Software and Service Companies (Nasscom) on Wednesday described Ohio's ban on offshore outsourcing as discrimination against Indian outsourcers.

An executive order from Ted Strickland, the Democratic governor of Ohio, has banned the expenditure of public funds for offshore purposes.

State officials must at all times remain focused on initiatives that create and retain jobs in the U.S. in general, and in Ohio in particular, specially during Ohio's continuing efforts to recover from the recent global recession, the order said.

Nasscom said that it was studying the legality of such a bill being passed by a state government. The trade body is leading a delegation to the U.S. later this month and will be taking the issue up with relevant officials in the U.S. It will also seek support from Anand Sharma, India's minister for industry and commerce, who is visiting the U.S. at the same time.

The move by Ohio has alarmed Indian outsourcers as it comes a few weeks after the U.S. passed legislation that increased visa fees to pay for border security.

U.S. President Barack Obama signed into law last month a $US600 million bill for increased surveillance of the U.S.-Mexican border to prevent illegal immigrants. The funds for these measures are to be raised from an increase in visa fees paid by tech workers brought into the country by companies with more than 50 staff, and in which more than 50 per cent of the staff are on these visas.

Indian outsourcers move staff in large numbers temporarily from India to the U.S. to work on clients' projects. Although the total additional cost to Indian outsourcers from the hike in visa costs is only about $US200 million, the move by the U.S. has led to fears of increased protectionism in the U.S. in the run-up to midterm elections in the country.

The Indian government said at one point that it may approach the World Trade Organization (WTO) to object to the hike in visa charges.

India's second-largest outsourcer, Infosys Technologies, said on Wednesday that it was concerned about the Ohio decision. Infosys' initiative in the public services sector is however focused on creating a domestic delivery center in the U.S., which should not be affected, the company said.

Like Infosys, a number of Indian outsourcers have acquired companies in the U.S. or expanded operations there, both worried about U.S. protectionism, and also because they need skilled U.S. workers for high-end work that requires a local presence.

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags outsourcingservicesoffshoringInfosys TechnologiesNASSCOM

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

John Ribeiro

IDG News Service
Show Comments

Essentials

Brother MFC-L3745CDW Colour Laser Multifunction

Learn more >

Mobile

Exec

Sony WH-1000XM4 Wireless Noise Cancelling Headphones

Learn more >

Budget

Back To Business Guide

Click for more ›

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Tom Pope

Dynabook Portégé X30L-G

Ultimately this laptop has achieved everything I would hope for in a laptop for work, while fitting that into a form factor and weight that is remarkable.

Tom Sellers

MSI P65

This smart laptop was enjoyable to use and great to work on – creating content was super simple.

Lolita Wang

MSI GT76

It really doesn’t get more “gaming laptop” than this.

Jack Jeffries

MSI GS75

As the Maserati or BMW of laptops, it would fit perfectly in the hands of a professional needing firepower under the hood, sophistication and class on the surface, and gaming prowess (sports mode if you will) in between.

Taylor Carr

MSI PS63

The MSI PS63 is an amazing laptop and I would definitely consider buying one in the future.

Christopher Low

Brother RJ-4230B

This small mobile printer is exactly what I need for invoicing and other jobs such as sending fellow tradesman details or step-by-step instructions that I can easily print off from my phone or the Web.

Featured Content

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?