Ohio?s outsourcing ban worries IT companies

Bangalore : The country?s second largest software firm, Infosys, has expressed concern over the United States? Ohio government?s ban on outsourcing government Information Technology projects to offshore destinations like India.

The American state?s governor Ted Strickland had hit on outsourcing IT as not just detrimental to the jobs of American people but also as a security threat, saying the strategy had ?unacceptable business consequences? including ?unacceptable data security, and thus privacy and identity theft risks.”

The ban is likely to adversely affect Indian companies, which also include India?s top software company Tata Consultancy Services, that have shifted their priority to the government sector following the recession.

Kris Gopalakrishnan, Infosys CEO said that even though this was indeed a concerning development, but the company was focused on creating a domestic centre in the U.S. therefore it would not be affected.

As unemployment rates in the U.S. continue to alarm American policy makers, it would not be unsurprising to see a few other states follow suit.