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Tuesday March 25, 2003 at 9:13PM - Offshore Outsourcing World Staff

New Jersey Proposes Ban on Offshore Outsourcing

Bill number 1349,as reported on eweek raises some very contriversial issues. On the one hand, the unemployment rate in New Jersey, and many other places in this country is close to 6%. On the otherhand, the expenses associated with technology projects can be very high, especially to pay wages.

It always becomes a very sensitive issue when the jobs of workers is discussed. When the topic of outsourcing is raised on slashdot.org many passionate voices can be heard. However, while there will be short term pain, Americans should be more clear on the issues and the longer term results.

The first issue that the Senator voices is the potential for profit of the offshore outsourcers. She cites an instance, where an outsourcer underbid it's competitors, having knowledge that the work would be performed offshore. Then she makes the point, that it is unfair for this company to make such a profit.

This is, of course, a very dangerous statement. Unfair to make a profit? If laws are passed with inhibiting profit, then it is likely few qualified bidders take the enormous effort to win a government project

Also, a concern about Senator Turners argument, is that it looks to be a quick fix to a much larger problem. The quick fix, will surely increase her popularity, however, it will, as a whole weaken the country. There will be many new jobs for these workers to fill. These jobs, however, will not be simple programming jobs. They will not be to answer telephones. The market will dictate what these jobs are.

However, by artificially keeping workers in positions, at government expense they will not be given the opportunity to learn these new skills. In the meantime, Americans must accept reduced levels of service, while paying higher taxes

It is unfortunate that we have government officials who are so hungry for votes and popularity, that they will act so clearly against reason. Such internal clouded reason, is in fact, the biggest reason that we as citizens have to fear, not offshore outsourcing vendors.

related stories, by category:

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