Offshoring in State Government

Filed in archive Outsourcing News on July 26, 2004

Does government exist to provide for certain essential services, or does it exist to employ people, even at higher-than-necessary costs?

A very important question is asked by the Mackinac Center for Public Policy.

Currently, Michigan, along with 36 other states are considering whether or not to ban the use of government funds (aka 'tax dollars') in ways that could send jobs offshore.

Clearly, this is a Complicated question. On the one hand, it has been proven that some services can be provided very effectively in offshore locations for half the cost that it would cost for the same exact service in Michigan.

On the other hand, a state benefits when it's own citizens are employed. In addition to collecting payroll tax dollars, strong employment will reduce the burden on state funded welfare programs.

For this question, there are no easy answers.