Another anti-BPO Bill moved

Nasscom flays latest US attempt at curbing outsourcing

Connecticut-based Democratic Senator Christopher Dodd has introduced a legislation to ban the use of federal funds to buy goods and services produced by overseas workers.

The bill, dubbed the United States Workers Protection Act, will bar the federal government from buying goods or services produced directly by overseas workers or by domestic companies using foreign sub-contractors.

Privatisation efforts by the federal government or state programmes using federal funding will also be restricted.

"Workers in Connecticut and across the nation are first-rate. It is simply doesn't make sense to export their jobs and futures half way around the world to save a few pennies," Dodd said.

"This administration needs to get its priorities straight, and use taxpayer dollars to invest in America "" American workers and small business owners. This legislation is a step toward stopping the needless export of American workplaces," he added.

The National Association of Software and Services Companies (Nasscom) today said the proposed legislation was against the principles of free trade.

"Industry worldwide has flourished on the principles of free trade and such restrictions are not positive," Kiran Karnik, president, Nasscom, said.

Dodd has based the legislation on the following statistics: Since 2001, the US has lost 2.7 million manufacturing jobs.

Significantly, in Connecticut, more than 14 out of every 100 manufacturing jobs have been lost in the last three years. At present, 40 per cent of Fortune 1000 companies are into overseas outsourcing.

According to some reports, as many as 3.3 million US jobs may be sent overseas in the next 15 years, causing American workers to lose up to $136 billion in wages.

This is not Dodd's first crusade against outsourcing. Last year, Dodd and Congresswoman Nancy Johnson had introduced a legislation aimed at protecting American workers.

The USA Jobs Protection Act, as it is called, will aim to tighten loopholes that allow foreign workers to secure employment in the US.

Several legislation against outsourcing have already been introduced in the US Senate and states.

The US government's attempts to prevent US companies from outsourcing jobs to India and other low-cost locations are being seen as political moves aimed at placating Americans in an election year, when the unemployment situation has become a big campaign issue there.

BPO blues

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• Proposed legislation to ban the use of federal funds to buy goods and services produced by overseas workers
• Connecticut-based Democratic Senator Christopher Dodd has introduced the Bill
• The Bill has been dubbed the United States Workers Protection Act