Online Forum: Join the Discussion

AeA Position
There are no systematic data on the actual number of U.S. jobs being off-shored, including the federal government. While the magnitude of offshore outsourcing is unknown, some workers are being hurt by this trend. AeA has released a white paper explaining in great detail the changes occurring in the global economy. The paper - Offshore Outsourcing in an Increasingly Competitive and Rapidly Changing World: A High Tech Perspective - explains these larger forces and to recommend ways in which the U.S., and particularly its high-tech industries, can successfully confront them.

The paper makes the following conclusions about the offshore outsourcing issue:

1. The magnitude of offshore outsourcing is unknown.
2. A weak international and domestic economy and productivity improvements are the primary cause of the lost jobs over the last three years—not outsourcing.
3. Changes in the international marketplace are posing far more significant new competitive challenges for U.S. companies than is offshore outsourcing.
4. The United States experienced a similar anxiety to offshore outsourcing in the late 1980s and early 1990s when there was a common view that Japan was going to take over the world. It didn’t.
5. We should not forget that the United States remains an immensely attractive location for foreign direct investment and "in-sourcing" by foreign companies, employing 6.4 million Americans.
6. Although some people will be hurt, offshore outsourcing is likely to be a long-term benefit for the United States.
7. If protectionist legislation should emerge from the states or Congress, high tech, as the largest exporter, stands to lose the most.

The paper concludes with a series of recommendations designed to make the high tech industry more competitive in the changing global market.

Legislation
The response of policymakers nationwide to the trend of offshore outsourcing has been to introduce legislation that attempts to stop this trend. More than 20 states are or have considered legislation to ban or limit offshore outsourcing. In Congress, the Senate has already passed legislation to prohibit companies from fulfilling federal contracts using offshore outsourced labor. While this legislation is designed to protect American jobs, ultimately these proposals may cost U.S. workers their jobs if countries retaliate. As the nation’s largest exporter of products and services, no sector of the U.S. economy stands to lose more than high-tech if ill-advised legislation brings retaliation.

AeA is working AeA is working in both state legislatures and Congress to promote legislation that will help the U.S. economy grow and create jobs and to oppose legislation that could trigger retaliation by foreign countries against U.S. high-tech products and services.

Federal Legislation

AeA members can join the AeA SPAN State Off-shoring Working Group, which is lobbying against state offshore outsourcing legislation and to promote positive legislation that will help create jobs for U.S. workers. The group meets by conference call every Monday to discuss the latest legislative activity and the actions needed. AeA lobbyist from 13 states as well as government relations employees from throughout the country participate in these calls. For more information contact Matthew Page.