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Updated on March 21, 2005 |
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Many Faces of Outsourcing, Part 2
Blue chip technology companies and other large U.S. companies are disturbed by the surge of anti-outsourcing sentiment. Ela Dutt spoke to Harris Miller, president of the Information Technology Association of America.
Blue chip IT firms dismiss outsourcing fears, but call for renewal in the U.S.
By Ela Dutt
Report
Chief executives of leading high technology firms last month belied concerns that outsourcing was the problem facing the U.S. economy. Rather, they said, the U.S. must get its act together on education and competitiveness. They called on policymakers to partner with them to establish new policy priorities that will increase U.S. growth and competitiveness, ensure its technology leadership and help create new American jobs.
Of late, India has become the flogging horse for legislators and talking heads as the place where most American IT jobs were being lost and been the leading cause for lawmakers to introduce legislation around the country to prevent outsourcing from government contracts.
The Computer Systems Policy Project (CSPP), an organization that represents top IT firms like IBM, Intel, Motorola, HP and Dell to name a few, says that in the face of growing competitive challenges and the need for decisive action to ensure U.S. economic security, it was offering preliminary recommendations to policymakers in Washington to strengthen all sectors of the U.S. economy. Their preliminary proposals are outlined in a report released by CSPP titled ‘Choose to Compete: How Innovation, Investment and Productivity Can Grow U.S. Jobs and Ensure American Competitiveness in the 21st Century.’
“As the U.S. encounters new global realities policymakers face a choice: We can compete in the international arena or we can retreat,” said Craig Barrett, CEO of Intel Corp. and chairman of CSPP. “America can only grow jobs and improve its competitiveness by choosing to compete globally, and that will require renewed focus on innovation, education and investment.” Trade protectionism was not the answer, the report says. More than 60 percent of the revenue of U.S. IT firms comes from outside the country, the report says, as IT companies strive to produce high quality but affordable products that are changing everyday lives of Americans.
In its report, CSPP observes that successful and productive U.S. companies must engage in business worldwide to capitalize on opportunities and respond to competitive challenges. “Emerging markets present tremendous opportunities for growth and fuel the innovation, entrepreneurship and productivity that are critical components to domestic business and economic growth,” the report says.
CSPP says it hopes to work with Congress and the Bush administration in developing a proactive competitiveness agenda to sustain economic leadership and job growth in the United States in the 21st Century. “This report is intended to begin the discussion, and the CSPP CEOs intend to reach out aggressively to public and private leaders in 2004 to define, enact and implement needed policies,” the release from CSPP said.
In the report, the executives appeal to policymakers to join them in crafting comprehensive initiatives and specific policies in three areas: Promoting and strengthening our innovation pipe-line; Encouraging investment in technologies and infrastructure that promote competitiveness and fuel entrepreneurship; Improving education and training for American students and workers.
“As a nation we must renew our investment in competitiveness, just as businesses must do,” said Carly Fiorina, chairman and CEO of HP. “Today we’re calling on our national leaders to partner with the private sector to develop a competitiveness agenda that maintains the processes and discipline that made the U.S. the leading technology exporter it is today. With the right framework in place, we can continue to innovate, boost productivity across all sectors of the economy, and maintain that leadership.”
The CEO members of CSPP ---- Michael Dell of Dell, Joseph Tucci of EMC, Carly Fiorina of HP, Sam Palmisano of IBM, Craig Barrett of Intel, Ed Zander of Motorola, Mark Hurd of NCR and Larry Weinbach of Unisys ---- will bring this message to policymakers on Capitol Hill and throughout the Administration in February when they visit Washington for their semi-annual meeting, according to CSPP. At that time, it says, the CEOs will encourage lawmakers to define, enact and implement the policies needed to sustain U.S. economic growth and competitiveness. CSPP also plans to work with other private sector groups to prepare and release educational information in 2004 that offers further guidance and recommendations for policymakers.
“The economic and competitive challenges that U.S. industry and American workers face are real,” said Joseph Tucci, President and CEO of EMC Corporation. “The United States must be proactive on innovation, investment and improving education for American workers in order for U.S. companies to compete successfully in today’s global marketplace. Only through strategic, concerted actions can the IT industry and government address the challenges and find solutions to maintain global competitiveness and sustain economic leadership and job growth in America.”
Founded in 1989, CSPP is the IT industry’s leading advocacy organization. The CSPP CEOs visit Washington twice annually to meet lawmakers about issues of importance to the high-tech industry including trade, spectrum, digital rights management, export controls and privacy.
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