US To Stem Outsourcing

Filed in archive Outsourcing News on January 24, 2005

The Bush administration plans to push tax incentives to curb outsourcing by US companies. This move hopes to prevent US telecommunications and computer companies from outsourcing operations to foreign countries where costs are lower.

Jamie Chandler, lecturer at the New York City University, said that legislative measures against outsourcing are a priority for Bush's second term. Chandler said that increased outsourcing to countries like India, China, and the Philippines has worried american workers. (The campaign against outsourcing is believed to have contributed to Bush's reelection.)

However, Chandler said that this might not be enough for companies such as IBM and American Express to pull out outsourcing operations from foreign countries. He said, "American companies are trying to lower costs and they focus on the bottom line."