WASHINGTON-The $328 billion omnibus spending bill passed by the Senate Thursday includes a provision forbidding offshore outsourcing by government contractors in certain cases, a move that could hurt wireless and technology firms that do business with some federal agencies.
The outsourcing amendment, championed by Sens. George Voinovich (R-Ohio) and Craig Thomas (R-Wyo.), is limited to the departments of treasury and transportation and other government agencies. The outsourcing restriction applies only to public-private competition and is valid only through fiscal 2004 fiscal, which ends Sept. 30.
Outsourcing, including both manufacturing and services, has become an election issue as U.S. jobs-particularly those in the tech sector-increasingly move overseas where labor is cheaper and regulations governing worker rights, health and safety, and environmental protection are less stringent than here.
“You’ve got concerns about employment, but you cannot wall off government from the global technology base,” said Stan Soloway, president of the Professional Services Council. PSC represents high-tech government contractors.
