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Bill against outsourcing to come up before US Senate

If approved, the Bill will be the first federal law that limits outsourcing.In graphics: Outsourcing backlash

business Updated: Jan 23, 2004 12:08 IST

In a boost to the opponents of outsourcing of high-tech jobs to countries like India, a $328 billion spending bill aimed at prohibiting government contractors from shifting work overseas would come up before the US Senate this week.

The provision, if accepted by the Senate, is likely to become the first federal law that limits companies from performing contracted work outside the US ever since outsourcing became a potent political issue an year ago.

The chamber of commerce and other business groups said the move would undercut the ability of US companies to compete with their overseas rivals, media reports said.

"There are a lot of ramifications of this--practically, politically and economically," said Stan Soloway, president of the Professional Services Council, which represents IBM and other contractors.

"We should be taking time to step back and look at this issue before rushing forward," he said.

Meanwhile, more than 150 corporate executives, many paying $1,400 a head, listened intently for tips on how to move jobs overseas at a conference on 'offshore outsourcing' which opened this week, reports said.

First Published: Jan 23, 2004 08:40 IST