[biztech-discussion] Fw: New report on state government offshoring

  • From: "Mike Bradley" <mbradley@xxxxxxxxxxxx>
  • To: "NWU-BizTech" <biztech-discussion@xxxxxxxxxxxxx>
  • Date: Wed, 14 Jul 2004 13:32:37 -0700

FYI, Phil is a long-time NWU member, he's the National Book Grievance
Officer and fomer chair of the Book Div.

= Mike Bradley

----- Original Message ----- 
From: "Philip Mattera" <pmattera@xxxxxxxxxxxxxxxxx>
To: <Recipient list suppressed>
Sent: Wednesday, July 14, 2004 1:30 PM
Subject: New report on state government offshoring

> Washington, DC, July 14, 2004--A report issued today by the Corporate
> Research Project of Good Jobs First spotlights the growing degree to which
> state governments are contracting with foreign outsourcing firms for
> contracts and are funneling millions of state taxpayer dollars offshore.
> The report, entitled "Your Tax Dollars at Work...Offshore," found that
> every state has engaged foreign vendors to perform state work offshore.
> research was commissioned by the Washington Alliance of Technology Workers
> (WashTech), a local union of the Communications Workers of America that
> supports workers in the information technology sector. The full text of
> report is available at www.goodjobsfirst.org.
> The report found that 18 offshore outsourcing firms are aggressively
> state government contract work -- primarily in information technology -- 
> at least 30 states. The 18 firms have captured about $75 million in state
> contracts so far and are seeking more, in part by hiring former government
> officials and by making state electoral campaign contributions.
> Marcus Courtney, president of WashTech, noted that while the offshoring of
> private sector work is receiving growing public attention, there is a real
> need to document the extent of offshore outsourcing by states for
> information technology work related to social service programs and other
> state functions. "As state legislatures continue to take up this issue,
> need the hard facts of how offshore contractors are positioning themselves

> to target the work of state governments," he said.
> Philip Mattera, director of the Corporate Research Project and Research
> Director of its parent organization Good Jobs First, stated that this is
> the "first national study of a subject that has been generating intense
> controversy in many states. It is important for states to know where the
> work they have contracted is being performed, and many states have no idea
> that this work is sent offshore."
> Often, state governments are not even aware that they are sending work
> offshore, the study found. In many cases, state governments awarded
> contracts to U.S. firms, believing that the work would be performed
> domestically, only to find that the work was subsequently subcontracted to
> an offshore vendor.
> In other cases, states assume they are dealing with a domestic company
> because a U.S. mailing address is used.  Offshore vendors typically use
> addresses for sales and marketing purposes, while the contract work is
> performed offshore.
> The study also looks at the large number of states that operate food stamp
> call centers offshore.
> ------------------------------------
> Philip Mattera
> Research Director & Director of the Corporate Research Project
> Good Jobs First
> (202) 626-3780 ext. 32
> pmattera@xxxxxxxxxxxxxxxxx
> www.goodjobsfirst.org
> www.corp-research.org

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