New York: As the backlash against outsourcing mounts in the United States, a State Senate plans to hold a hearing from today (Dec 1, 2003) on why a $ 15.2 million outsourcing contract was awarded to an Indian software firm to upgrade State computers processing unemployment claims.

The Indiana State Senate probe would also look into a Bill that would require that contracts for services entered into by a State agency must specify that only US citizens and those authorised to work in the US (Green Card holders) can be hired.

This follows State Governor Joe Kernan's decision this week to terminate the four-year contract awarded to the Tata Consultancy Services' (TCS) US subsidiary to upgrade the State computer network processing unemployment claims. Kernan's predecessor Frank O'Bannon had cleared the contract weeks before his death on September 13.

Senator Jeff Drozda, who had proposed the Bill that would require all State-related work to be done by US citizens said, "I want to send a message to other states", engaged in outsourcing and awarding of work contracts to foreign companies.

The Bill is expected to be taken up by the State legislature's Economic and Development and Technology Committee in January and its outcome would be closely watched by different States, who are also under pressure to enact similar legislations.

Commenting on the cancellation of the deal with TCS, Kernan said, "After discussing how we can provide better opportunities to Indiana companies and workers, we concluded that this contract did not fit in that framework."

PTI