To: lurqer who wrote (32902 ) 12/17/2003 3:22:46 PM From: laura_bush Respond to of 89467 State jobs moving to workers overseas Bill would ban contractors from this kind of outsourcing Wednesday, December 17, 2003 By JOHN COOK SEATTLE POST-INTELLIGENCER REPORTER The Boeing Co. is building its next generation jetliner in Everett, thanks in part to a multibillion dollar tax package from the state. But the same state government that worked hard to preserve the Boeing jobs is contracting with companies that are sending information technology projects and call center work to lower-cost operations in India. That irony was not lost on some politicians yesterday, who said they plan to introduce legislation next month that would prevent state contracts from being awarded to companies that take the work overseas. In the past two years, the Washington State Health Care Authority and the state Department of Social and Health Services have signed contracts with U.S. companies that then hire Indian subcontractors to do the work. In addition to those projects, the state Department of Corrections is currently in negotiations with a company to send part of the agency's $20 million Offender Management Network Information system to India. The outsourcing issue has some labor groups and politicians steamed, who believe it is undercutting the long-term mission of state government. "I think it is terrible, it is just that simple," said Rep. Zack Hudgins, D-Tukwila, a former Amazon.com employee who plans to introduce legislation with Rep. Sandra Romero, D-Olympia, early next year. "We are trying to create jobs in the state and we are trying to keep Boeing here and at the same time we go to the lowest bidder (on state contracts) and they take the jobs overseas." Five other states are considering similar legislation, according to the Seattle labor organization WashTech. More than 300,000 U.S. jobs are expected to be outsourced overseas by 2005, according to a BusinessWeek report. Roy Lum, deputy director of the state Department of Information Services, which oversees the largest technology projects in the state, admits that some government work is occurring offshore. But he said there is no state policy that prohibits the practice. "For us, we are going where we can get the best value for the taxpayer's dollar," said Lum, adding that the state also buys software from foreign companies such as SAP. "If it is lower cost and comparable or better quality -- to me that is where I would personally go." That's exactly what occurred at the Health Care Authority, which provides access to health care for more than 500,000 residents in the state. In mid-2000, the Health Care Authority was looking for a vendor to help replace two old insurance eligibility and accounting computer systems. Last year, the government agency signed a $3 million contract with Healthaxis -- an Irving, Texas, company whose motto is "OutThink. OutSource. OutPerform." Healthaxis outbid PeopleSoft, Oracle/Physmark and Deloitte & Touche by submitting an offer that was a third of the cost of its competitors. It did this by including a plan to outsource much of the work to Satyam Computer Services in India. Continues.......seattlepi.nwsource.com