BANGALORE, September 8, 2010 -- Infosys software company, expressed concern over the Ohio state government's move to ban IT outsourcing to offshore locations such as India. Infosys CEO & Managing Director Kris Gopalakrishnan said, "We are concerned with the recent news from US about banning offshore outsourcing by Ohio State government departments."
"Infosys' initiative in the Public Services sector is focused on creating a domestic Delivery Center in the US hence this should not be affected."
Yesterday we reported that the Governor of US state Ohio, Ted Strickland, termed outsourcing not only a threat to jobs but an IT security risk.
According to a news report in ComputerWorld, the governor's criticism of offshore outsourcing is part of a recent order to the state agencies prohibiting them from hiring any company that sends work offshore.
The order to the state agencies said that the purchase of offshore services "has unacceptable business consequences," and among them were "unacceptable data security, and thus privacy and identity theft risks." The order further added, "There are pervasive service delivery problems with offshore providers, including dissatisfaction with the quality of their services and with the fact that services are being provided offshore,"
The executive order came after a Texas-based company Parago Inc, hired by Ohio agencies to administer a rebate programme for new energy-efficient appliances, used call center workers in El Salvador. This made Strickland pass the order "to ensure that public funds are not expended for offshore services," says the news report.
Another US state New Jersey also moved to block offshore outsourcing after a vendor reportedly used offshore labour for call center support.
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