State governments shift work offshore

Saturday, July 17, 2004

Virtually every state government shifts work offshore through state contractors. A new report provides a national analysis of offshore outsourcing of state government work. The analysis focuses on information technology and food-stamp call centers.

Read more. Download the report.

It's easy to reach the wrong policy conclusions from this report. We can move toward increasing regulation and restrictions (as this report suggests) -- a move that will ultimately fail. Or, we can take the insights of this report to underscore the real challenge: investing in brainpower.

While state legislators will spend hours trying to restrict outsourcing, they ignore a far more disturbing trend, the persistent decline of state investments in higher education. State and local tax fund appropriations for higher education (measured as a ratio of state personal income) has been declining steadily since the mid-1970's.

posted by Ed Morrison |

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