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Outsource at Your Own Risk

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May 2004 -- Outsource at your own risk is the message some states are sending to companies looking to go abroad in order to save some money.

Last week, Tennessee Gov. Phil Bredesen signed a bill that rewards companies for not outsourcing, making it the first state in the country to do so. Both New York and California have taken measures to prevent companies who outsource form using public funds, the Volunteer State is the first to outright reward companies for choosing to keep their white-collar jobs here.

"The best work at the lowest cost has to be the primary standard," Gov. Bredesen said. "We want to support businesses who are supporting us ... this bill seems to be the parallel way of dealing with that, at the state level."

More than 35 states are considering anti-outsourcing bills, and a recent study indicates just how many American jobs will be lost to outsourcing in the next 10 years -- making politicians and constituents alike take notice. According to the report, published by Forrester Research Inc., more than 3.3 million American jobs will be lost to outsourcing by 2015.

Ironically, vocal opposition by politicians as well as extensive coverage in the media are both cited by the report as reasons for the recent surge in outsourcing. The report also says that a "second wave" of outsourcing will form where smaller, tech-orientated companies will follow the lead of large corporations in searching overseas for cost-cutting measures.





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