India to take up TCS deal with US

The Centre will take up with the US trade department the issue of the Indiana state government cancelling its $15 million infotech contract with Tata Consultancy Services.

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According to officials, the information technology department is collecting information on the issue, and a case will be made soon. The government is also engaging industry associations for the purpose.

The government is of the view that the World Trade Organisation should be used to block legislation and steps like these to stop outsourcing to Indian companies.

To prevent any move against outsourcing, the government also wants to set up a mechanism to monitor the status of regulations and legislation planned by other countries.

Indiana Governor Joe Kernan, a Democratic candidate for elections due in November next year, has ordered the state department of workforce to cancel its contract with Tata America International Corp, a subsidiary of TCS, for upgrading state computers processing unemployment claims.

Tata America International Corp won the contract over Accenture and Deloitte Consulting. During the project, as many as 65 contract employees were to work in the Indiana Government Centre alongwith 18 state workers.