[IP] Tech CEOs: Hiring offshore workers helps U.S.
Delivered-To: dfarber+@xxxxxxxxxxxxxxxxxx
Date: Wed, 07 Jan 2004 18:21:21 -0800
From: Dewayne Hendricks <dewayne@xxxxxxxxxxxxx>
Tech CEOs: Hiring offshore workers helps U.S.
Protectionism not an answer, they caution
By Grant Gross, IDG News Service
January 07, 2004 <http://www.infoworld.com/article/04/01/07/HNcetoshire_1.html>
WASHINGTON - U.S. IT companies need to hire foreign workers in order to
stay competitive in the global market, but the U.S. government could also
help by passing laws that improve the country's education system and
encourage spending on IT products, says a report released by the Computer
Systems Policy Project (CSPP).
The 20-page report, titled "Choose to compete," calls on U.S. lawmakers to
avoid "protectionism" through limits on international trade and
collaboration, and instead to form a partnership with U.S. companies to
improve how the nation competes globally. "Because U.S. companies are
operating globally, they must hire qualified workers around the world to
meet customer demands and expand their capabilities -- a business model
that makes sense, given that increasing corporate revenues come from
abroad," says the CSPP, representing chief executive officers (CEOs) at
eight U.S. IT companies.
Jobs moved offshore return benefits to U.S. companies and, by extension,
U.S. workers, the report argues. "Much of the substantial revenue earned
abroad cycles back to Americans in the form of jobs and wages for workers,
investment in research and development, profits for shareholders and taxes
for the U.S. economy," the report says.
The report counters growing criticism from some worker organizations and
politicians who have questioned why U.S. companies hire foreign workers or
move jobs overseas when the latest U.S. unemployment rate stands at 5.9
percent.
"Thousands and thousands and thousands of white-collar jobs are going
overseas, chasing the cheap dollar in India, China, Malaysia and the
Philippines," U.S. Rep. Don Manzullo, an Illinois Republican, said at a
congressional hearing on offshore outsourcing in October. "That's the
reason for this hearing, because of the incontrovertible evidence that the
United States is on the verge of adopting the economies of Third World
nations."
But the CSPP's goal isn't to be defensive about hiring foreign workers,
said Bruce Mehlman, executive director of CSPP. Instead, the group wants to
spark a conversation about how the U.S. can stay competitive, with the CEO
members "interested in protecting the national interest."
"There is a sense from these CEOs that their companies are competitive and
will stay competitive," Mehlman added. "They want to make sure there are
good, thoughtful debates happening in Washington."
The CSPP report argues that the U.S. IT industry has raised worker
productivity and helped raise the standard of living in the U.S. CSPP
members, including chief executives of Dell Inc., IBM Corp. and
Hewlett-Packard Co., said they will counter arguments against offshore
hiring with a package of legislative proposals outlined in the report,
released Wednesday. The group of CEOs will present the proposals to
Congress and members of the Bush administration during CSPP's annual
meeting in February.
"As the U.S. encounters new global realities policy makers face a choice:
we can compete in the international arena or we can retreat," said Craig
Barrett, CEO of Intel Corp. and chairman of CSPP, in a press release.
"America can only grow jobs and improve its competitiveness by choosing to
compete globally, and that will require renewed focus on innovation,
education and investment."
The report, available online at
<http://www.cspp.org/reports/ChooseToCompete.pdf>, includes proposals for
Congress to:
-- Create a permanent, improved research and development tax credit.
-- Substantially increase federal spending for university-based research in
science and engineering.
-- Shorten tax depreciation schedules for IT equipment.
-- Pass a permanent moratorium on Internet-only taxes.
-- Set goals and fund a program to improve math and science skills among
U.S. students.
The report warns of attempts to put up trade barriers and limit hiring of
foreign workers. "These measures often backfire," the report says.
"Countries that resort to protectionism end up hampering innovation and
cripple their industries, which leads to lower economic growth and,
ultimately, higher unemployment. Furthermore, any trade barriers created by
the United States ... could lead to retaliation from our trading partners
and even an all-out trade war."
But organizations representing IT workers, including the Institute of
Electrical and Electronics Engineers-USA (IEEE-USA) have questioned how
moving jobs offshore helps unemployed IT workers in the U.S. In late 2003,
U.S. the unemployment rate for electrical and computer hardware engineers
was near 7 percent, according to the IEEE-USA.
"Their interest is in profits," Ron Hira, chairman of the IEEE-USA's
research and development committee, said of offshoring defenders during an
interview last month. "They don't feel a responsibility to their workforce.
Archives at: <http://Wireless.Com/Dewayne-Net>
Weblog at: <http://weblog.warpspeed.com>
-------------------------------------
You are subscribed as roessler@xxxxxxxxxxxxxxxxxx
To manage your subscription, go to
http://v2.listbox.com/member/?listname=ip
Archives at: http://www.interesting-people.org/archives/interesting-people/