IT professionals slam US decision to forbid outsourcing of government projects

Written by: Nitsi
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Bangalore, Sep. 9 (ANI): Slamming the decision of the US state of Ohio to forbid outsourcing of Information Technology (IT) projects by government departments, IT industry professionals here termed the move 'discriminatory' and 'protectionist'.

Ohio's governor Ted Strickland issued an executive order banning the spending of public funds for outsourced services.

"Now, with this they have actually proven to what extent they can go for protectionism. It is high time that the Commerce Ministry raised a complain to WTO (World Trade Organisation)," said R. Karthik Shekhar, Secretary General of Union for Information and Technology Enabled Service India.

However, others said that the State Government projects were too few to really impact the total revenue.

"Immediate, short-term impact may not be very significant as very small portion of the total revenue of Indian I.T. (Information Technology) comes from government projects, and that too from state government projects," said Anand Bhat, Director of Way2goals Software India Private Limited.

The measure is being seen as a setback to Indian IT companies, which have been tapping opportunities in the US across sectors. By Jaipal Sharma (ANI)

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