One of India's largest software company, Infosys Technologies has shown its concern over the decision of the US state of Ohio to ban outsourcing.

This, said the company, will have serious impact on the Indian companies.

Talking to media, Infosys CEO & Managing Director Kris Gopalakrishnan said that the company will be negatively impacted because of this.

While Infosys has taken up the initiative of creating huge domestic demand by also looking at setting up of domestic Delivery Center in the US, this should not have created job losses as they were saying.

Meanwhile, in a directive the state of Ohio has banned IT and back-office projects to be sent to offshore companies saying that this is causing high rate of unemployment in the country.

Said Ohio governor Ted Strickland in an order, "There are pervasive service delivery problems with offshore providers, including dissatisfaction with the quality of their services and with the fact that services are being provided offshore."

This is going to be yet another to the Indian IT industry which is facing low cost trouble from other regions as well.