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Ohio Governor bans outsourcing

September 13
01:44 2010

WASHINGTON Running behind in opinion polls, Ohio Governor Ted Strickland of Democratic party, who till now was going out of his way to woo Indian companies, has banned outsourcing, arguing that this undermines economic development and has unacceptable business consequences for his state.
“Outsourcing jobs does not reflect Ohio values,” Strickland said in a statement after he signed an executive order banning outsourcing.
Reacting to the order, the Indian IT sector, which gets 60 per cent of its export revenue from the US, termed the move as discriminatory and said it amounts to a trade barrier.
The move, which comes ahead of US President Barack Obama’s visit to India in November, follows a controversial legislation that increased H-1B and L1 visa fees, hitting India’s over USD 50 billion IT industry. The Indian industry will take up the issue with its US counterparts and seek government’s support to flag it with the American authorities.
“Nasscom is leading a delegation to the US later this month and will be taking this up with relevant officials in the US,” the apex body of the IT and ITES industry said in New Delhi.
Seeking re-election in the November gubernatorial polls, Strickland acknowledged that he is running behind his Republican opponent John Kasich.
By pushing such protectionist measures, his campaign believes that he would be able to win over crucial votes in the run-up to the November elections.
As per the latest opinion polls, Strickland is running behind 12 percentage point against Kasich.
Earlier, Strickland had made special efforts to attract Indian companies to Ohio.
In 2007, TCS said it would build its North American Delivery Centre in Milford, an Ohio city, after Strickland offered about USD 19 million in tax credits and other incentives. TCS now has some 400 employees working here.
Signaling an apparent change of heart, Strickland said Ohioans have been among the hardest hit by more than a decade of unfair trade agreements and the trickle-down economic policies that promoted off-shoring jobs at the expense of Ohioans who work for a living.
“We must do everything within our power to prevent outsourcing jobs because it undermines our economic development objectives, slows our recovery and deprives Ohioans and other Americans of employment opportunities,” he said.




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