Public Policy Priority Issue Update

Congress Funds Major Offshoring Study

Washington (23 November 2004) — A small provision of great importance to engineers is contained within the massive omnibus appropriations bill passed by Congress over the weekend of 20-21 November. The provision will fund a two million dollar study of offshore outsourcing (offshoring) and its effects on the country. The study will be the largest and most comprehensive study of offshoring undertaken.

A scarcity of data has prevented anyone from speaking authoritatively about the effects and consequences of offshoring. No one knows, for example, how many jobs have been lost to offshoring, or which types of jobs have been lost. The new study should answer these fundamental questions, enabling policy makers and engineers to better respond to offshoring.

The study proposal was written and championed by Congressman Frank Wolf (Va.-10) who was concerned about the lack of information surrounding what he saw as a serious issue. The study was originally proposed by Dr. Ron Hira, chair of IEEE-USA’s Career and Workforce Policy Committee.

In early April, Dr. Hira conducted an online interview with The Washington Post in which he decried the lack of good data on offshoring. Congressman Wolf read the interview and contacted Dr. Hira about his concerns. Later that week, Dr. Hira and IEEE-USA staff met with the Congressman to discuss what steps should be taken to correct the problem.

Congressman Wolf is chair of the Commerce, Justice, State and Judiciary Subcommittee of the House Appropriations Committee, and was therefore perfectly positioned to create and fund the study. Mr. Wolf added $2 million to the appropriations bill for his committee, and then fought for the study throughout the entire budget process.

IEEE-USA expects the study to take at least two years to complete. While the Wolf study is not a solution to the offshoring problem, it will provide an objective understanding of the offshoring phenomena, and will make eventual legislative solutions both more likely and more effective.

Contact:

Vin O'Neill
IEEE-USA
Phone:  202-785-0017
Email: v.oneill@ieee.org

Last Update:  15 May 2007
Staff Contact: Vin O'Neill, v.oneill@ieee.org