Indiana lawmakers oppose anti-outsourcing Bill
Tuesday, December 2 2003 17:37 Hrs (IST)
New York: Amidst the mounting backlash against outsourcing in the United States, lawmakers in Indiana
State opposed a Bill to ban non-US citizens from doing Government contract works, as they felt the law
would affect overseas investment prospects.
The Bill was introduced after Governor Joe Kernan cancelled a $ 15 million outsourcing contract won by
an American subsidiary of Tata Consultancy Services (TCS) for upgrading the computer system of a
State agency.
During a debate yesterday (Dec 1, 2003), a majority of lawmakers, both Republicans and Democrats, on
the Senate's panel on technology and economic development, opposed the Bill as they felt it goes too
far and could have unintended consequences as the State seeks overseas investments.
They are now trying to "limit the scope" of the Bill and find "better ways" to help State companies to win
contracts for Government.
"In it's current condition, I think it's pretty dead," Senator Vi Simpson, a Democrat and a member of the
panel, was quoted by 'Indianapolis Star' as saying.
In the hope of reviving the Bill later, the Senate panel's chairman David Ford did not seek a vote. He
said a modified Bill could be debated in January after the General Assembly begins its 2004 session, the
report said.
The Bill's author, Senator Jeff Drozda, said he filed it because he opposes Indiana spending public
money to create jobs for low-paid workers from other countries.
Drozda criticized the $ 15.2 million contract State officials signed in August with Tatas to upgrade State
computers used to process unemployment claims.
TCS America won the Department of Workforce Development contract after its proposal came in $ 8.1
million lower than the next-most-competitive bid.
Tatas had said they would hire local subcontractors and do some local recruiting, but most workers
would be Indians.
"This is a real significant issue for American workers," Drozda told the committee, adding, "These
companies don't pay taxes. It doesn't help our economy one bit."
Several panel members suggested limiting the scope of the Bill or finding a better way to help Indiana
companies compete for State work.
Kernan's deputy chief of staff, Tom McKenna, said Drozda's concerns could be taken care of through
changes in the State's contracting procedures.
PTI
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