New York, Dec 02: Amidst mounting backlash against outsourcing in US, lawmakers in Indiana State opposed a bill to ban non-US citizens from doing government contract works, as they felt the law would affect overseas investment prospects. The bill was introduced after Governor Joe Kernan cancelled a USD 15 million outsourcing contract won by an American subsidiary of Tata Consultancy Services for upgrading the computer system of a state agency.

During a debate yesterday, a majority of lawmakers, both republicans and democrats, on the Senate's panel on technology and economic development, opposed the bill as they felt it goes too far and could have unintended consequences as the state seeks overseas investments.

They are now trying to "limit the scope" of the bill and find "better ways" to help state companies to win contracts for government.

"In it's current condition, I think it's pretty dead," Senator Vi Simpson, a democrat and a member of the panel, was quoted by Indianapolis star as saying. Bureau Report