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Reps Smith and Inslee Request GAO Study on Offshore Outsourcing


From: Dave Farber <dave () farber net>
Date: Wed, 23 Jul 2003 12:51:24 -0400

I happen to agree with the need for such a study . I car see a book in five years "the china that can say nr" --substitute many nations for china


Date: Wed, 23 Jul 2003 09:21:15 -0700 (PDT)
From: Travis Winfrey <winfreyt () yahoo com>
Subject: Reps Smith and Inslee Request GAO Study on Offshore Outsourcing
To: dave () farber net

WashTech News

July 18, 2003

Reps Smith and Inslee Request GAO Study on Offshore Outsourcing

By David Beckman

'We need to know where jobs are going to be.'

-- Rep. Adam Smith (D-Wash.).


A Washington state congressman requested a federal study
yesterday that would attempt to determine to what extent
the rising trend of offshore outsourcing is affecting
the loss of U.S. tech jobs.

Rep. Adam Smith (D-Wash) delivered a written request
late Thursday morning to General Accounting Office
Comptroller General David Walker in Washington, D.C.
Smith said in a news release yesterday that he wants the
GAO to investigate the impact offshore outsourcing has
on U.S. high-tech workers, aerospace engineers, and
various levels of state and federal government workers
whose jobs have been sent offshore. Fellow Washington
state congressman Jay Inslee co-signed the request.

Smith said that in light of the nation's high
unemployment rate, the United States needs to develop a
new jobs and industrial plan and determine a focus for
the "New Economy."

"We need to know where jobs are going to be," said
Smith, who represents Washington's 9th District.

While government programs invest in retraining
unemployed workers, it is not clear whether there will
be jobs for those workers to fill, Smith said.

"Offshore outsourcing (of information technology
services) has become increasingly common for U.S.
organizations, generally because of the perceived cost
savings and to enhance competitiveness in the global
economy," Smith said.

But Smith said he is concerned that retraining and
educational programs may be training people in the
United States for jobs that are being sent overseas.

The recent practice of moving service and development
work to countries such as India, Russia, and the
Philippines has been employed ever more widely by
companies such as Microsoft and Boeing in order to slash
domestic labor costs. The magnitude of the effect on
domestic jobs and on the U.S. economy has so far not
been measured.

"Part of the problem with the issue is just tracking and
understanding it," says Stan Sorscher, research director
for the Society of Professional Engineering Employees in
Aerospace (SPEEA). "We're analytical people by nature.
Seeing the actual data would be much more helpful in
understanding the impact."

The rate of unemployment in Washington state has
concerned Smith for some time, said Smith's
Communication Director Katharine Lister, especially when
constituents complained that offshore outsourcing is
responsible for the loss of many of the state's
information technology jobs.

"We've been working the GAO (request) for a couple of
months now," Lister says. She says the reason Smith
assumed a low profile on the issue until now is that the
congressman "tends to labor under the radar screen."

Inslee assumed a somewhat higher profile. He met with
representatives from SPEEA and the Washington Alliance
of Technology Workers, or WashTech, on June 6 in
Seattle. The groups asked to meet with Inslee to discuss
remarks he reportedly made while on a visit to India.
Press reports said Inslee told Indian government and
tech industry officials that measures before Congress or
state legislatures intended to curb offshore outsourcing
"would not go anywhere."

They also asked Inslee to initiate a GAO study on the
effects of offshore outsourcing. Inslee said he would
investigate making such a request.

Two weeks later, however, Inslee said he was unsure
whether he could build support for such a study.

"I'd like to say we could do that, but I don't have a
thousand investigators to be running that type of
assessment," said Inslee, whose congressional district
includes parts of King, Kitsap, and Snohomish counties.
According to Washington state employment reports, more
than 80,000 jobs have been lost in that region since
2001.

According to the GAO's congressional protocols, any
member of Congress can make requests for GAO
investigations. The requests are usually made in the
form of a letter addressed to the GAO's comptroller
general.

http://www.washtech.org/wt/printer.php?ID_Content=4590


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