Obama's "Buy American" Policy Forces Government Outsourcing Changes

Share Article

Four billion dollars of taxpayer stimulus funding is heading to the public sector for outsourcing and officials aren't waiting for "Buy American" legislation to start the spending, according to a recent poll by The Black Book of Outsourcing and Brown-Wilson Group. Almost all of the economic recovery monies are heading to American-based tech companies, revealed the study of public sector administrators The results were submitted last week at the Conference on Economic Recovery in Washington, DC.

The Black Book of Outsourcing

Four billion dollars of taxpayer stimulus funding is heading to the public sector for outsourcing and officials aren't waiting for "Buy American" legislation to start the spending, according to a recent poll by outsourcing researchers Brown-Wilson Group. The study of government administrators confirmed that almost all of the economic recovery monies will go to US technology firms. The results were submitted last week at the Conference on Economic Recovery in Washington, DC.

State and local governments were surveyed to qualify a proletarian definition for "Buy American" that will meet or exceed expected oversight mandates as well as the protectionist sentiments of elected officials and US taxpayers.

The vast majority (90%) of state and local government officers polled agree on four main qualifiers for stimulus-resultant outsourcing under the "Buy American" technology and outsourcing suppliers:

  • US Domiciled Headquarters, and
  • At least 50% of the outsourcer's total employment comprised of American citizens, and
  • The capability to provide 100% of the initiative services via American citizen employees     including no more than 15% H1-B visa workers to the project, and
  • The resources to operate the entire initiative on American soil.

The survey by outsourcing data and polling firm Brown-Wilson Group and authors of "The Black Book of Outsourcing" shows that 96% of public sector respondents agree that "Buy American" is their only outsourcing purchasing option, regardless if the technology projects are part of the stimulus funded initiatives or not, based on taxpayer sentiment. Procurement policy changes may also redirect some current projects from outsourcing firms as offshore contracts are scrutinized.

"The public sector is highly motivated to utilize outsourcers to innovate their technologies and aren't waiting for protectionist legislation to direct their vendor selections. Constituent sentiment is demanding the use of American suppliers as technology unemployment exceeds ten percent in some parts of the United States. We're seeing government's lead in determining US preferred vendors spreading to the private sector, as well", said Douglas Brown, a partner of Brown-Wilson Group.

The top ten major outsourcing firms that ranked highest in client satisfaction and user experiences, by the annual Black Book user polls, and meet the new public sector criteria for "Buy American" are in order: Ciber ACS, CSC, Unisys, Perot Systems, Northrop Grumann, EDS-Hewlett Packard, SAIC, Lockheed Martin and BearingPoint.

To avoid the creation of bigger bureaucracies and make sure the stimulus funds are used prudently yet expediently, governments report the likely acquisition of consultant advisement prior to any acquisition of outsourcing services. In fact, governments predict their use of outside advisors to grow three-fold in the coming years. The American-based outsourcing advisory services firm EquaTerra scored highest among in public sector outsourcing advisement consultants.    

"While popular opinion seems to suggest that outsourcing among public sector organizations may decline in times of high unemployment rates, the converse is actually true. State and local governments believe outsourcers can help them improve service, build capacity quicker than if the organizations attempted to do so in house, and to obtain needed expertise and staff", said Brown.

The entire study can be downloaded at http://theblackbookofoutsourcing.com/resourceslinks.htm.

# # #

Share article on social media or email:

View article via:

Pdf Print

Contact Author

Scott Wilson
Visit website