Congressman Jay Inslee (D-Wash.): "U.S. won't stop outsourcing to India"

siliconindia ^ | Wednesday, May 28, 2003 | IANS

[Willie Green]

For education and discussion only. Not for commercial use.

U.S. companies will continue to outsource jobs to India to cut costs despite a move by some American states to curb flight of government contracts, said Congressman Jay Inslee.

NEW DELHI: "People are worried about job security in the U.S. and therefore it is not terribly surprising to find a few people who will oppose outsourcing to other countries," said Inslee, a member of the Democratic Advisory Group on hi-tech issues.

"Some people may support the promulgation of legislation to ban outsourcing but the majority of U.S. industry and policymakers are not in support of creation of new trade barriers," Inslee, who is on a visit to India, told IANS in an interview.

"I don't think it (a ban on outsourcing) is going to happen. We want to keep our doors open. I believe any effort to restrict market access will adversely impact the U.S. economy. The policy of protectionism will not take us anywhere.

"For any economic growth to occur, a country needs to add more value to its products without increasing the cost and outsourcing to India helps U.S. companies do exactly that," added the Congressman.

The Indian government has reacted sharply against four American states -- New Jersey, Maryland, Connecticut and Washington -- reportedly proposing to ban outsourcing of government contracts to companies outside the U.S.

Commerce Minister Arun Jaitley said the move was against the principle of market access and India was placed on "high moral ground" to take it up at the World Trade Organisation (WTO) negotiations.

The New Jersey Senate had unanimously cleared a bill on December 16 preventing public enterprises in the state from outsourcing work, specifically to India. State Senator Shirley Turner had proposed the bill.

The bill prohibited public enterprises from shifting their call centres abroad for "cheap labour" with a view to creating more jobs for Americans as the unemployment rate in the U.S. had soared.

The bill was taken up for discussion by the Senate Committee in February this year but couldn't be passed and has now been put on hold. It is now likely to be discussed in the Senate next month.

Close on New Jersey's heels, other states like Washington and Connecticut are also reportedly mulling a ban on outsourcing contracts to India.

Inslee, a representative from the First Congressional district of Washington, however said there was no move in his state to introduce a bill that would make outsourcing difficult.

"Ours is a trade-oriented state and we will not take any step that goes against the principle of market access. Our ability to access other markets will diminish if we ourselves block access to the U.S. market. Trade is a two-way street."

India's vast pool of English-speaking and cheaper manpower, educational system and training programmes have helped transform the country into a global outsourcing superpower over the last few years.

India's software exports grew by 29 percent to $7.5 billion in the year to March 31, 2002, with some 60 percent going to the U.S.

The country's rapidly growing business process outsourcing (BPO) industry has virtually turned it into an electronic housekeeper to the world, taking care of a host of routine activities for multinational giants.

More than a quarter of Fortune 500 companies like General Electric, American Express, British Airways, HSBC and Citibank are shifting their back office operations to India.

Inslee, who is a part of the Congressional Caucus on India and Indian Americans, said Indian technology companies and professionals in the U.S. have played a very important role in the American economy.

"Indians in the U.S. have created tremendous intellectual capital and helped in the growth of the knowledge economy."

[MonroeDNA]

From the same site, unionist.org:

__________________________________________

The message below will be sent on your behalf

Subject:



Dear [ Decision Maker ] ,

(Edit Letter Below)
I am writing because I am increasingly concerned about the escalating practice of moving U.S.-based information technology and other computer service jobs abroad.

I understand from the Washington Alliance of
Technology Workers and Forrester Research that over the next 15 years 3.3 million U.S. service industry jobs and $136 billion in wages will likely move offshore to countries such as India, Russia, China, and the Philippines. The IT industry is already leading the initial exodus, with legal, accounting, and other sectors to follow.

The IT sector in particular has bolstered the middle and upper-middle class in this country by providing family-wage jobs and opportunities to many people who work in IT or related support jobs and businesses, small and large. Whether in highly visible corporations like Microsoft, or as part of other businesses such as an insurance company, IT work has fueled the aspirations of many local communities as well. It is in large part responsible for wealth creation in our country.

What is the future of our country if so many of our jobs, including government IT jobs, are moving offshore? It looks to me like a race to the bottom.

My issue is not with IT workers in other countries, but with the practice of moving these jobs abroad with no apparent concern for U.S. workers, many of whom are highly trained and are now out of work.

Because this emerging issue is so important to our future, I urge you to support calls for an immediate congressional investigation into IT offshoring. We need to look much more closely at the ramifications of this disturbing trend -- on U.S. workers, the communities in which they live, and the future economic and technological security of this country.

For your research, I've included the following links:

Perilous Currents in the Offshore Shift
http://www.businessweek.com/magazine/content/03_05/b3818051.htm

A new report projects federal spending on information technology outsourcing services will increase from $6.6 billion to nearly $15
billion by fiscal 2007.
http://www.washingtontechnology.com/news/1_1/outsourcing/19754-1.html

The New HP Way: World's Cheapest Consultants
http://www.forbes.com/2002/12/05/cz_qh_1205hp.html

Forrester Research reference
http://itmanagement.earthweb.com/career/article.php/1503461

___________________________________________

Willie Green, unionist plant, you are busted. See tagline.

[MonroeDNA]

ping to above

[Black Agnes]

Um, given that the congresscritter in question is a dim I think destruction of the USA is probably top on his agenda. The more unemployed and 'outsourced' people in the country the more future dim voters. Also helps with 'redistribution of the wealth' to the poor countries (er, I mean to the companies that outsource then pay the little brown and yellow men peanuts) Easy.

[MonroeDNA]

"Mr Top Quack feels secure that he'll be able to hold onto his position in the ... ...I'VE GOT MINE CLUB ( so screw the rest of those 'little people') "

Are you jealous? Or practicing class envy? Hmmm...who practices class envy? See tagline.

[MonroeDNA]

BTW, I can see that "usefull idiots" can still be recruited. Just now where near the same percentages. Congratulations, anyway.

[Campion]

Most importantly, you do not understand the value of education

Let's see, a B.A. from a top university, election to Phi Beta Kappa as a junior; an M.A. from an Ivy League school; an M.S. from another fine university ... all of them with GPA's just below 4.00 ... but I don't understand the value of education.

I'm gonna hurt myself laughing.

By the way, you used "it's" incorrectly, and misspelled "enriches," and "experience".

Any time you'd like to discuss the fine points of organic pharmaceutical synthesis, data structures, Russian history of the immediate prerevolutionary era, or Thomistic philosophy ... this uneducated fool will be glad to oblige.

[MonroeDNA]

see above.

[Campion]

I think destruction of the USA is probably top on his agenda. The more unemployed and 'outsourced' people in the country the more future dim voters.

No more calls, please ... we have a winner!

[grb]

Let me know when you pay less dollars for something outsourced. Are your insurance rates going down?
I'm not looking for the Goverment to protect my job from outsourcing. The part I want to stop is the infux of H1-b's and H1-l's. This is the result of Goverment intervention. Since when is the goverment a third world employment agency, I must have missed that part of the constitution. The purpose of these visas is to fill jobs where americans cannot, These companies have found ways around that while the government looks the other way. That's where this is all wrong.

So skip the marxist bullshit because I want to keep my job from aliens the are here because you think the government should subsidize your lifestyle

[sit-rep]

I don't think it (a ban on outsourcing) is going to happen. We want to keep our doors open. I believe any effort to restrict market access will adversely impact the U.S. economy. The policy of protectionism will not take us anywhere.

"For any economic growth to occur, a country needs to add more value to its products without increasing the cost and outsourcing to India helps U.S. companies do exactly that," added the Congressman.

This guy is a piece of shit. Who does he think he is talking to?

It is time to gather your equipment and march on to the battlke field!!!

[sit-rep]

Take two...

I don't think it (a ban on outsourcing) is going to happen. We want to keep our doors open. I believe any effort to restrict market access will adversely impact the U.S. economy. The policy of protectionism will not take us anywhere.

"For any economic growth to occur, a country needs to add more value to its products without increasing the cost and outsourcing to India helps U.S. companies do exactly that," added the Congressman.

This guy is a piece of shit. Who does he think he is talking to?

It is time to gather your equipment and march on to the battlke field!!!

[grb]

So isn't the goverment subsidizing you by allowing H1-b's and H1-l's into the country. The purpose of these visas is to fill jobs where americans cannot or will not. These people work for substandard wages and where I live they all work for the major insurance companies. (sarcasm on) Let me know when your insurance rates go down. (sarcasm off)

[MonroeDNA]

"Am I the only one wondering why the self-described conservatives on this board are either ingorant of the essense of capitalism or hate it openly? "

Sleeper freepers, for real, and useful idiots. The honest ones would say they have been duped, like Earnest Bourgnine said ("I was duped"), after he realized he was supporting Marxists around 40 years ago, in Hollywood.

Read "Regan's War", and it all comes clear. The pattern is easily recognizable. Read it, and spread the word. For real.

[CIBvet]

Why would any sane person be envious of a PREDATORY Capitalist.

I find their character defects of selfishness and greed, simply disgusting.

[Willie Green]

This guy is a piece of shit. Who does he think he is talking to?

It's obvious he doesn't care about the interests of his constituents at home.

[MonroeDNA]

From the union website:

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Current Advocacy Campaigns from WashTech

Fight Against Secret Outsourcing
June 03, 2003 Leggo My Ergo!
February 11, 2003
Contact Rep. Inslee about IT offshoring
May 30, 2003 Tell Congress to Study IT Offshoring
January 24, 2003
Give WA Workers Warning of Mass Layoffs
February 27, 2003

____________________________________

Marxists start with the unions. Class envy, us-against-them, we-deserve-more.

That is the agenda.

[TopQuark]

You may indeed be versed in the areas you have mentioned. I do not know what's in one's head: I referred only to what you said. And, you did not even attempt to apply education to the topic at hand. To the contrary, your statements are indeed contrary to the basic tenets of education. I did not call you names, nor did I attempt to judge you as a person: I reacted to your actions --- words, in this case.

Have a good evening.

[TopQuark]

We subsidize the Indians. How many billions in aid do we give India?

Not many.

And, what does this have to do with the issue at hand?

[MonroeDNA]

From the same site:

______________________________

Take Action!
Contact Rep. Inslee about IT offshoring

Representative Jay Inslee of Washington state says he does not think that offshore outsourcing of U.S. tech jobs is a problem. On a recent tour in India, he told Indian reporters and business leaders that he believes any U.S. state or federal legislation that aims to limit the transfer of U.S. jobs overseas will not go anywhere. He also discounted concerns about such offshoring among U.S. tech workers, saying, "People are worried about job security in the U.S. and therefore it is not terribly surprising to find a few people who will oppose outsourcing to other countries."

We think there are more than a few of us who oppose the wholesale shipment of tens of thousands of good IT jobs abroad, especially jobs that are paid for by U.S. taxpayer-funded projects. Please send a message to Rep. Inslee and help us to let him know that this is an issue of concern to consituents in his district, hundreds of thousands of IT workers throughout the United States, and millions of U.S. citizens.

Your message will be emailed to Rep. Inslee. While we have provided a sample letter, we encourage you to modify and customize this message, or swap it out with one of your own. Details about your own experiences in the tech industry will make your letter more powerful.

_____________________________________

(letter coming up!)