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California okays bill banning offshoring

Submitted by Karthik on 27 August, 2004 - 00:37

Despite stiff opposition from local businesses, the California senate has passed a controversial Bill banning state agencies from contracting services to companies that use overseas labour.

California is one of the 34 states where legislation has been introduced, to restrict work on state agency contracts from being performed overseas, or impose regulations on offshoring practices to safeguard the security of medical & financial data.

With the Assembly expected to concur, governor Arnold Schwarzenneger faces a choice between vetoing the measure to please business lobbyists or signing it to appeal to a populist demand for job protection, San Jose Mercury reported on Tuesday.

IndiaTimes has this story.