Andhra concerned over impact of Ohio’s decision on IT sector

September 12th, 2010 - 12:17 am ICT by IANS  

Barack Obama Hyderabad, Sep 11 (IANS) Andhra Pradesh Chief Minister K. Rosaiah is concerned over the impact of the decision of US’ Ohio state, to ban outsourcing to India, on the state’s Information Technology sector.
The chief minister has urged the central government to take up the issue with the United States and ensure that the Indian IT industry and people do not suffer.

In letters addressed to Foreign Minister S.M. Krishna, Commerce Minister Ananda Sharma and IT and Communications Minister A.Raja, Rosiah said raising invisible trade barriers on the eve of President Obama’s visit to India in November did not augur well for relations between the two countries.

He expressed surprise over the decision of Ohio state to ban the outsourcing of government information technology and back-office projects to locations such as India

Rosiah noted with concern US President Barack Obama’s speech indicating that incentives to companies outsourcing the IT projects would be withdrawn, said a statement from the chief ministers office.

Rosaiah observed that more than half of the worlds top 500 companies outsource work to India, which has become the world’s back office.

Particularly, Andhra Pradesh, in recent years, has become an IT hub providing employment to more than two lakh employees in various Indian and multinational companies. Any hasty decision on US side to ban outsourcing would be detrimental to the interests of all our IT qualified graduates, the chief minister apprehended.

Rosaiah, who discussed the possible impact on the state with IT advisor C.S. Rao, said the Ohio ban seems to be a precursor to more and more states in the US falling in line. Obama’s latest statement endorses the same, he added.

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