Backlash against outsourcing a matter of concern: TCS

By siliconindia staff writer   |   Monday, 01 December 2003, 20:30 IST
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NEW DELHI: Having lost a $15 million contract in Indiana state, Tata Consultancy Services has said the increasing backlash against outsourcing in the US was becoming a matter of concern. "It (the government IT contract) is big market for Indian companies. If this sort of things happens, obviously it is going to restrict our choice to compete in that market. The initial impact is not there. But looking at the long term view of the market, it is something we need to worry about and engage with governments to ensure that we can do something, Phiroz Vandrevala, executive VP, TCS, said. As far as TCS was concerned, he said, cancellation of a $15 million contract over three years, could be made up by the company. "We bid on a contract and we won that. If someone wants to cancel it, we will see what recourse we need to take. This is a government related issue. We expect our government and industry association like Nasscom to respond to it. A single company is not going to take that up," he said The contract had been cancelled not because TCS did not perform but because of a statutory change, he added.