Nasscom in dismay at cancellation of TCS' US contract

By siliconindia staff writer   |   Monday, 24 November 2003, 08:00 Hrs
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NEW DELHI: Software industry association Nasscom on Saturday expressed dismay at a US state agency's cancellation of a $15.2 million contract with Tata Consultancy Services, saying the move inhibited free trade in the sector.

"Nasscom feels that such move, which inhibit free trade in the sector, are not in keeping with the increasing trend towards globalisation", Nasscom said in a statement.

Citing research as having already established that free trade in IT services was of mutual benefit to all parties and that offshoring had led to substantial gains to the US economy, Nasscom said it would continue to engage in dialogues with US policy makers and opinion makers.

Indiana’s Governor Joe Kernan, a democrat, has ordered the state department of workforce to cancel its contract with Tata America International, a subsidiary of Tata Consultancy Services, to upgrade state computers processing unemployment claims, according to a report published in 'Indianapolis Star'.

Kernan said that the agency's request for competitive proposals had been put together and advertised in a way that "virtually knocked Indiana companies out of the running".

A spokeswoman for TCS was quoted as saying that "this is a decision for the state of Indiana to make, and TCS will comply.

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