When President Obama addressed the nation in his State of the Union, he stressed that tax breaks should be eliminated for American companies who ship work offshore and instead include tax advantages for organizations creating jobs locally. This assertion constructed the idea that the federal government was in pursuit of anti-off shoring legislation.
In an article for CIO.com, Stephanie Overby provides insight into how organizations can protect themselves from what she describes as “potential protectionist legislation.” According to Overby, states cannot outright ban offshore outsourcing operations by private companies, but that there are several who are attempting to enact laws that will slow its pace.
Overby suggests that organizations can protect themselves from anti-off shoring legislation by making “change in laws” provisions in contracts for compliance purposes. In addition, Overby suggests to include a “benchmark clause” in the event that modifications need to be made to services as prompted by legislation. Overby also recommends for outsourcing clients to work with provides with significant operations in the U.S. in case they are asked to move work onshore.
In an IMF Web Forum, Martin Gardocki from Rural America Onshore Sourcing, discussed the rural alternative in the total cost of outsourcing. Rural America Onshore Sourcing is responsible for finding and aggregating rural talent to provide customers with contract assistance as required for their businesses.