Andhra Pradesh, India’s Chief Minister K Rosaiah aired concern following the issuance of an executive order banning outsourcing of government IT and back office projects by Ohio Democratic governor Ted Strickland. Hyderabad, the capital of Andhra Pradesh, is home to more than 2000 software outsourcing companies that get contracts from the US and the UK.
“A majority of the world’s top 500 companies outsource work to India, and a major part of it comes to Hyderabad. The Ohio ban is just the beginning. The US government is likely to cut incentives to companies outsourcing IT projects to India and more states and companies may decide against outsourcing. It would become difficult for the IT industry to survive here if outsourcing is banned,” Rosaiah said. He added that this anti-outsourcing move will have an effect not only to Andhra Pradesh but also India as a whole.