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Rethinking outsourcing

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Another anti-outsourcing bill has been introduced in Congress, even as more companies are finding their own reasons to pull some outsourced IT jobs back in house.

The Stop Outsourcing and Create American Jobs Act, introduced June 29 by Rep. Tim Bishop, D-N.Y., aims to discourage corporations from using tax haven countries to create jobs overseas. The bill would increase penalties for illegal transactions involving tax haven countries, and it would allow federal agencies to ask potential contractors about their outsourcing practices and give preference to those that haven't outsourced any jobs within the last year.

The Government Accountability Office estimated in 2008 that 83 of the 100 largest public corporations operate subsidiaries in tax haven countries. "Rewarding good corporate citizens who create American jobs will ensure the economic recovery reaches Main Street," Bishop said upon unveiling the legislation.

Meanwhile, a number of large corporations, including Delta Air Lines and Chrysler, have repatriated some of their outsourcing projects, reports Stephanie Overby at CIO.  Some analysts anticipate that more companies will follow their lead, partly because it is becoming clearer which IT tasks are best suited to outsourcing and which aren't.  

Taking back outsourced jobs--or insourcing--is not necessarily easy or cheap, however, Overby writes. Outsourcing arrangements can be complicated to undo, requiring companies to untangle shared assets, train new personnel and transfer software licenses, among other things. Before deciding to replace an outsourcer with in-house talent, IT executives should ask themselves nine questions, including how long the process will take, whether business leaders are on board and what terminations penalties are in store.

For more:
- see the Stop Outsourcing and Create American Jobs Act press release
- see Stephanie Overby's article at CIO

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