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Friday, April 16, 2004

Economic Development - WSJ Outsourcing Story Features Indiana/India Contract

A story today on page A4 of the Wall Street Journal (not freely available online) begins with this lead:

When India's largest software company won a $15 million contract to upgrade the processing of Indiana's unemployment claims, public outrage prompted the state Senate to vote to ban future outsourcing of state contracts to other countries. But then the business community swung into action to derail the bill. The result: A watered-down version was introduced in the state's lower house and eventually died.
Later in the story:
Spearheading the attack is the Coalition for Economic Growth and American Jobs, formed late last year by the U.S. Chamber of Commerce, the Business Roundtable, the American Bankers Association and other powerful business groups. The coalition's success shows how hard it is for state politicians to defeat a well-funded and well-organized business lobby, even when populist anger is high. Among its tactics: enlisting big employers to say they would be hurt by the restrictions; warning that taxpayers' costs would go up if outsourcing were curbed, and trying to run out the clocks on the legislative sessions.

Posted by Marcia Oddi on April 16, 2004 02:35 PM
Posted to Indiana economic development