US IT companies need to hire foreign workers to stay
competitive in the global market, according to a report released
by the Computer Systems Policy Project (CSPP).
The 20-page report, titled "Choose to compete", calls on US
lawmakers to avoid "protectionism" through limits on international
trade and collaboration and, instead, to form a partnership with US
companies to improve how the nation competes globally.
"Because US companies are operating globally, they must hire
qualified workers around the world to meet customer demands and
expand their capabilities - a business model that makes sense,
given that increasing corporate revenues come from abroad," said
the CSPP, representing chief executive officers at eight IT
companies.
"Much of the substantial revenue earned abroad cycles back to
Americans in the form of jobs and wages for workers, investment in
research and development, profits for shareholders and taxes for
the US economy," said the report.
The report counters growing criticism from some worker
organisations and politicians who have questioned why US companies
hire foreign workers or move jobs overseas when the latest US
unemployment rate stands at 5.9%.
"Thousands of white-collar jobs are going overseas, chasing the
cheap dollar in India, China, Malaysia and the Philippines," said
US senator Don Manzullo.
"That's the reason for this hearing, because of the
incontrovertible evidence that the US is on the verge of adopting
the economies of third-world nations."
But the CSPP's goal is not to be defensive about hiring foreign
workers, said Bruce Mehlman, executive director of CSPP. Instead,
the group wants to spark debate about how the US can stay
competitive, with the chief executive officers' "interested in
protecting the national interest".
"There is a sense from these chief executive officers that their
companies are competitive and will stay competitive," Mehlman
added. "They want to make sure there are good, thoughtful debates
happening in Washington."
The CSPP report argues that the US IT industry has raised worker
productivity and helped raise the standard of living in the US.
CSPP members, including chief executives from Dell, IBM and
Hewlett-Packard, said they will counter arguments against offshore
hiring with a package of legislative proposals outlined in the
report.
The group of chief executive officers will present the proposals
to Congress and members of the Bush administration during CSPP's
annual meeting in February.
The report is available online at
www.cspp.org/reports/ChooseToCompete.pdf
Grant Gross writes for IDG News Service