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Ohio Governor first woos, then bans outsourcing

Governor Ted Strickland says outsourcing jobs 'does not reflect Ohio values'. Strickland's views on outsourcing are harsh but he wants them to invest in his state too.

india Updated: Sep 08, 2010 14:48 IST

The US state of Ohio has banned state agencies from hiring any firm that sends work offshore -- a move that could be copied by other American states.

Ohio Governor Ted Strickland, in a recent order, said outsourcing, was a threat to jobs and an IT security risk. The website reports Strickland, in his order, said the purchase of offshore services "has unacceptable business consequences".

“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," Strickland wrote in his order. "It is difficult and expensive to detect illegal activity and contract violations and to pursue legal recourse for poor performance or data security violations."

"Outsourcing jobs does not reflect Ohio values," Strickland said.

Computerworld reports that Strickland has ironically also courted offshore companies to invest his state. Tata Consultancy Services, India's largest IT services company, said in 2007 it would build its North American Delivery Center in Milford, Ohio, after the state offered about $19 million in tax credits and other incentives.

Last month, the US Congress had passed a controversial legislation increasing H-1B visa fees. Indian companies earn an estimated $ 50 billion a year in revenue from export of IT and BPO services.

ht epaper

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