Offshore Outsourcing Battle Heats Up

The New Jersey State Legislature has reportedly tabled a closely watched bill that would have prevented the overseas outsourcing of N.J. state government IT projects.

Introduced into the N.J. legislature about four months ago, the bill was drafted by State Senator Shirley Turner to ensure that government funds be used to employ U.S. workers, rather than workers based in India or other typical outsourcing recipient countries. The bill was passed unanimously by the New Jersey State Senate and was then sent to the New Jersey State Assembly on Dec. 16.

The bill, however, has reportedly been sent back to Senator Turner for revisions by a committee of the Assembly.

Indian news accounts credit lobbying efforts by the ITAA (Information Technology Association of America) and by Nasscom (the National Association of Software Services Companies), Indias industry association of IT software and service companies, with convincing Turner that the bill would have negative repercussions on U.S. industry and that its wording should be changed to drop mentions of outsourcing and of India. Turner could not be reached to confirm or deny this account or to say if she planned to revise the bill.

The bill may be doomed to failure or to being watered down, but it will have left a legacy: At least three other states are now considering similar legislation, including Connecticut, Missouri and Wisconsin.

Meanwhile, backlash against domestic IT job loss to overseas companies has taken a different tack in New York. The New York Software Industry Association, a high-tech organization in New York City, is organizing a “Buy NY” campaign to re-establish the citys brand as a strong technology market and to increase the number of high-tech jobs in the area.

The NYSIAs mission is to promote the hundreds of IT companies in New York City and to remind buyers that they dont have to look outside of the five boroughs for quality products.

The campaign will consist of a one-day Buy NY event, a manifesto and a city council resolution about which NYSIA has not provided details.

The Buy NY event will bring together technology vendors and IT buyers from the government, private and not-for-profit enterprises on March 21 at the New York Marriott, in Brooklyn.

The manifesto urges buyers to include one or more New York IT producers or vendors on their evaluation lists.

Those interested in exhibiting or purchasing at the Buy NY event can e-mail buyny@nysia.org. More information is available at www.nysia.org.

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