Law Curbs Outsourcing of State Contract Work

Filed in archive Outsourcing News on February 6, 2005

Illinois Governor, Rod Blagojevich signed a law that requires companies bidding for state work to disclose any outsourcing plans. The state will then decide which companies will get contracts, and have the power to end contracts if companies outsource more than they disclosed.

Under the law, companies bidding on contracts are required to submit a report with any outsourcing information to the Department of Central Management Services. It was noted that companies that practice outsourcing would not be automatically banned from getting work. The law will take effect on July 1.

Senator Carol Ronen proposed the legislation because companies are increasingly shipping jobs to foreign countries. Ronen said, "[This is] an important first step to keep jobs in this state and in this country." Another sponsor, Representative Harry Osterman, said that the law shows Chicago's commitment to fight outsourcing. Osterman adds, "One bit of leverage we have is that as a state with a large budget, how we spend our money is important."

Tod Maisch, spokesman for the Illinois State Chamber of Commerce, said that business are pleased with the law. He said, "We're pleased that the Legislature took a careful look at an emotional issue and crafted a piece of legislation that employers can live with."