Offshoring: Reduce Risk When Gov't Threatens Restrictions

By Michael Overly, Matt Karlyn and Julie Kim, CIO
The focus, at all levels of government, on economic recovery and job growth has spurred proposed state and federal legislation that takes aim at offshore outsourcing.

For example, four proposals pending in Congress would define new rules for how companies use outsourcers. Three focus on offshore call centers, while a fourth would discourage offshoring by ending various tax benefits received by companies doing business overseas. Meanwhile, state lawmakers have proposed prohibiting companies that send business out of state or offshore from receiving government contracts and other financial benefits.

While none of the bills seem likely to become law soon, CIOs considering outsourcing business operations such as call centers should anticipate the affect that this type of legislation could have on the costs of outsourcing and include provisions in their outsourcing agreements to address the potential impact.


Source:http://www.networkworld.com/news/2010/091310-offshoring-reduce-risk-when-govt.html?page=3
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