Ted Strickland, Democratic governor of Ohio, issued an executive order banning the transfer of government IT and back office projects offshore.
According to Strickland, "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" prompted him to put a stop to outsourcing government projects to offshore locations.
While this anti-outsourcing move is not made specifically for Indian service providers, it is expected to affect India-based companies which handle big state-level government projects, and especially at a time when Indian firms are already dealing with concerns such as the bill on the increase in visa fees of IT workers coming to the US. "Ohio's ban on outsourcing can only be viewed as counter-productive to the US government thrust on reducing public deficit... It only reinforces our stand on discrimination," National Association of Software and Service Companies (Nasscom) said in a statement.