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CWA Wants Government Action on Tech Outsourcing

CWA is pressing Congress to authorize an investigation by the General Accounting Office into the growing number of U.S. information and technology companies that are shifting U.S. technology jobs overseas.

Numerous tech and information companies have been involved in the transfer of U.S. work overseas, including AT&T, Microsoft, Bank of America, Dell, Eastman Kodak, IBM Corp. General Electric Co.'s medical services division and Hewlett Packard, Bahr told members of Congress.

In a letter to key members of the Senate and House, including Sens. Edward Kennedy (D-Mass.) and Byron Dorgan (D-N.D.) and Reps. Marcy Kaptur and Dennis Kucinich (D-Ohio), CWA President Morton Bahr asked for an immediate investigation into the outsourcing of skilled technology jobs.

"The American public was told not to worry about the loss of manufacturing jobs as they would be replaced with high-tech service jobs" he said. "Not only was this flawed logic at the time, but now that very premise is challenged. If high-tech jobs are moving overseas, what will sustain the American economy?"

As reported in a recent issue of Business Week, a growing number of U.S. companies are sending upscale jobs overseas, including basic research, chip design, engineering, financial analysis and more. Shifting the high-tech, high-skilled work is a serious threat to the job security and wages of tech workers in the United States, the Washington Alliance of Technology Workers/CWA said.

WashTech, CWA Local 37083, has set up a section on its website to help tech workers and others e-mail elected officials, express their concerns about the loss of tech jobs and call for a government investigation.

WashTech focused attention on a briefing last summer by a top Microsoft executive at which the company encouraged managers to "pick a project and outsource today." By shifting work overseas, Microsoft could get "quality work at 50 to 60 percent of the cost," or "two heads for the price of one," the executive said.

The business news magazine cited Microsoft's outsourcing to China and India and its establishment of research centers in both countries.

WashTech pointed to a study by Forrester Research Inc. estimating that American employers will move about 3.3 million white-collar service jobs and $136 billion in wages overseas in the next 15 years, up from $4 billion in 2000.

For more information and reports on IT outsourcing, go to www.washtech.org or www.techsunite.org.