Top outsourcing customers, such as Bank of America and several local governments in the US, are asking vendors, including TCS, Infosys and Wipro, to deliver more projects locally. They are also rescinding job offers to foreign workers in an attempt to address anti-offshoring sentiments and cope with legislative requirements of the Troubled Assets Relief Program (TARP).
Bank of America and other financial services organisations who have received funds under TARP need to ensure that they try and employ a local American workers before hiring a foreign worker from companies such as TCS, Infosys and Wipro. During past few months, at least five new outsourcing contracts had new clauses, which mandated that certain work be delivered onshore.
“Bank of America’s Merill Lynch integration projects are being delivered locally because of TARP requirements—on any other day, Infosys could have done a majority of these projects from India and elsewhere,” said a US-based person familiar with the bank’s outsourcing initiatives.
Source: The Economic Times (Delhi edition)