Outsourcing receives a setback. The New York City Department of Education has stopped American companies from hiring teachers from countries such as India as they stated that it was quite difficult to conduct background checks in foreign countries. There was already a debate going on as to whether American companies could employ teachers from other countries for tutoring American children.
The companies argued that since there was no one to one contact between the student and the teacher therefore background checks was uncalled for. The officials were not willing to budge from their position as the rules require that teachers are required to give their SSN and finger prints which if thought over could only be given by teachers living in America.
Due to this a contract worth $2 million was cancelled which involved two hundred and fifty teachers for tutoring around two thousand children. This decision could act as a benchmark and also have an affect on other states employing this same method. I believe that this is an irrelevant ruling that could certainly affect the outsourcing business.
