Question : RESTRICTIONS ON OUTSOURCING OF IT SERVICES



(a) whether several States of USA have imposed restrictions on outsourcing of IT services to India;

(b) if so, the details thereof and the response of the Government thereto;

(c) the impact of such restrictions; and

(d) the estimated value of IT related services provided by India to different countries, country-wise?

Answer given by the minister

MINISTER OF STATE FOR COMMUNICATIONS AND INFORMATION TECHNOLOGY(SU THIRUNAVUKKARASAR)

(a),(b) and (c): US States of New Jersey, Washington, Missouri Connecticut have introduced legislative proposals for placing restrictions on contracting of state contracts to entities outside of US. None of these proposals have so far become a law. The Government in association with National Association of Software and Services Companies (NASSCOM) is constantly reviewing the situation. The Bill, if passed, may have a marginal effect on our exports to USA.

(d): The software exports from India, including IT related services to various countries for the last three years are as under:-

Year	Country	Software exports	Total software	(US $ Billion)	exports(in US$ Billion)
2000-2001 US/CANADA 3.71 8.2 EU 1.33 other countries 3.16 2001-2002 US/CANADA 4.91 10.0 EU 1.79 other countries 3.30 2002-2003 US/CANADA 6.13 12.7 EU 2.19 other countries 4.38