Outsourcing

In a world of globalization, US companies are constantly seeking strategies to become more effective and competitive. Important objectives of companies are to reduce costs to stay ahead of the competition, thus enhancing profits. Outsourcing has become the main cost-cutting strategy in the 21st century. There has been a controversial subject as many have blamed outsourcing for the fallen American Economy and the decrease to many American jobs.

There have been numerous policy proposals by both the government and by leading companies for this controversial move towards outsourcing. Over the past few years, Governor Arnold Schwarzenegger faced a number of proposed bills that were aimed at controlling the off-shoring of California jobs and services and that would become law without the Governor’s veto. (SB 888-prohibiting the off-shoring of essential state homeland security work, AB 1829-prohibiting state agencies or local government from contracting for services to be performed by workers outside the U.S., and SB 1492-prohibiting health care businesses from transmitting personally identifiable information outside the U.S. without authorization.) Governor Schwarzenegger vetoed all of these bills. By vetoing the bills, the Governor determined that rather than saving jobs, the bill “would actually be detrimental to our economy and the creation of new jobs in this state,” as well as negatively impacting state and local competition, implementation of more efficient government purchasing systems, and prices paid by government entities for services. There is also an argument that these sorts of bills restricting trade violate the constitution and our foreign trade agreements. I agree with Governor Schwarzenegger’s decision and also believe Maryland should follow suite. Since we have