Lawmakers in Connecticut have passed a bill which requires companies bidding for state contracts to disclose where the work would get done. The bill is titled "An Act to Retain State Jobs," has been passed by overwhelming 125-25 votes.
So far, so good. Two points here,
1. Remember, this bill only considers bidding for state contracts. I would like to know out of total contracts how many are state contracts.
2. Now, if a company bidding for a state contract bids extraordinarily low because it outsources its work to Philippines (considering that quality is more or less same), can the concerned state government office (whatever the office is) cancels the bid because it was based on outsourcing? What about tax payer's money. Just to keep America's job in America will the governmental departments grant the contract to higher bidder?
I don't know I may be wrong. I am neither pro nor anti outsourcing. I get lot of hate mails from both the parties. But where I am doubtful is can you restrict the market dynamics by creating such laws? Water, as they say, always go downwards, you can not stop it, it will find its way.
There are also instances that companies directly do not outsource but get the work done by vendors. It's like 'A' company gives the work to 'B' company. Its 'B' company which is outsourcing the work to offshore countries. How can you stop that?
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