The state of offshoring

State legislators have introduced a series of bills during the past two years regarding global sourcing, or offshoring, of state government work. The bills cover limitations that range from encouraging agencies to give work to local contractors and prohibiting them from sending projects overseas.

The following sample of bills introduced this year includes three that are now law. Most states have multiple bills under consideration. Details about those bills and others introduced in previous years that are still under debate can be found at the National Foundation for American Policy's Web site (www.nfap.net/researchactivities/globalsourcing).

Alabama

Recent legislation encourages state and local agencies to use Alabama-based professional services. It does not restrict or place mandates on procurement decisions. Proposed legislation would:

  • Prohibit state contractors from sending work overseas.
  • Require operators of overseas call centers to identify themselves as being overseas.

Arizona

Proposed legislation would:

  • Prohibit state contractors from sending work overseas.
  • Restrict overseas call-center and data-transfer contracts.
  • Ban state contracts for foreign call centers.

California

Proposed legislation would:

  • Prohibit state contractors from sending work overseas.
  • Restrict contracts for overseas call centers and the processing of personal data and health care information.
  • Require that contractors notify California's Employment Development Department of their outsourcing plans.

Connecticut

Proposed legislation would:

  • Prohibit state contractors from sending work overseas.
  • Restrict contracts for overseas call centers and the processing of personal data and health care information.
  • Restrict development assistance for outsourcing companies.
  • Ban state contracts for foreign call centers.
  • Set a preference for all work being performed in-state.

Idaho

Proposed legislation would:

  • Set employment preferences for state residents.

Indiana

Recent legislation sets preferences for in-state contracts. Proposed legislation would prohibit state contractors from sending work overseas.

Louisiana

Proposed legislation would:

  • Prohibit state contractors from sending work overseas.
  • Set preferences for in-state contractors.
  • Allow agencies to reserve the right to reject non-U.S. bidders.

Maryland

Proposed legislation would:

  • Require agency officials to consider whether a contractor might send work overseas (passed but not yet signed).
  • Prohibit state contractors from sending work overseas.

New York

Proposed legislation would:

  • Prohibit state contractors from sending work overseas.
  • Restrict call-center contracts to companies that will perform the work in the United States.
  • Restrict development assistance for companies that send work overseas.

Tennessee

Recent legislation requires that preference be given to U.S.-based contractors. Proposed legislation would:

  • Prohibit state contractors from sending work overseas.
  • Restrict call-center contracts to companies that will perform the work in the United States.

West Virginia

Proposed legislation would:

  • Restrict call-center contracts to companies that will perform the work in the United States.
  • Impose a seven-year ban on state contracts and assistance to companies that outsource work overseas if more than 100 jobs will be lost as a result of the outsourcing.

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