Hello, Bombay? Can I renew my license?

Have you telephoned your Internet service provider lately? If you have, chances are the person on the other end of the line was based in India. And they're not the only ones. Food stamp recipients and other users of state services are finding themselves in contact with overseas call centers, as well.

State agencies are following the business trend of sending information technology work to companies with overseas tech centers in places such as India, Russia, China and the Philippines. Consequently, seven states have introduced legislation prohibiting state agencies from using companies that do not employ American workers.

A side affect of globalization is hiring workers in cheaper labor markets. Manufacturers were the first to make such a move. Now, the improvement in communication technologies has made it easier for companies to ship service jobs abroad, as well.

Companies are setting up overseas call centers staffed with young professionals who demand a fraction of what their American counterparts are paid.

States are doing it too. And it is a classic policy dilemma for state government: cut state agency overhead costs or protect taxpayer-funded information technology jobs

Maryland Delegate Pauline Menes is the sponsor of legislation curbing state use of foreign workers. "I'm not so sure I see it as an appropriate tax-saving, cost-saving operation," she says. "If the jobs were given instate, you would pay more on the contract, but you would be helping individuals earn income on which we collect a tax."

States that have introduced legislation prohibiting agencies from sending work to companies that use foreign nationals or illegal workers are Connecticut, Florida, Maryland, Michigan, North Carolina, New Jersey and New York.