WORLDWIDE SOURCING Victoria E. Fimea, Esq. Senior Counsel, Litigation, ACLI Insurance and the Law...
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WORLDWIDE SOURCING Victoria E. Fimea, Esq. Senior Counsel, Litigation, ACLI Insurance and the Law 2004 New Orleans, Louisiana March 1, 2004 Why You Need to Know
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Transcript of WORLDWIDE SOURCING Victoria E. Fimea, Esq. Senior Counsel, Litigation, ACLI Insurance and the Law...
WORLDWIDE SOURCING
Victoria E. Fimea, Esq.
Senior Counsel, Litigation, ACLI
Insurance and the Law 2004
New Orleans, Louisiana
March 1, 2004
Why You Need to Know
Worldwide Sourcing“. . . Whether it is a boom to the U.S.
economy or not, the trend toward upscale outsourcing is a fact, and it is accelerating . . . You want a national security issue? Trust me, this threat to the long-term U.S. economy is a big one . . . We can grapple with this problem now, and try to develop workable solutions . . . Or we can ignore this fire in the basement of the national economy until it rages out of control.”
– Bob Herbert, Op-Ed Columnist, “Education is no Protection”, New York Times, Jan. 26, 2004, e-edition
“. . . ‘offshoring’ of U.S. service jobs is only ‘the latest manifestation of the gains from trade that economists have talked about’ for centuries . . . ‘[m]ore things are tradable than were tradable in the past and that’s a good thing’ . . . ‘when a good or service is produced more cheaply abroad, it makes more sense to import it than make or provide it domestically.’”
– N. Gregory Mankiw, Chair, White House Council of Economic Advisers, and quoting the Annual Economic Report of the President, as reported by Jonathan Weisman, Staff Writer, “Bush, Adviser Assailed for Stance on ‘Offshoring’ Jobs”, The Washington Post, Feb. 11, 2004, e-edition
Worldwide SourcingWhat is it?
More commonly referred to as outsourcing
Focus is on the offshore nature of the outsourcing
Fiscal economies
Worldwide SourcingWhy Should We Care?
Legislation is multiplying - state and federal
Public Relations issues
The functions being sourced
The Contracting Issues
From an in-house lawyer’s perspective, because
Worldwide SourcingLegislation – State and Federal
Condition of the U.S. economy makes this a hot button issueIf involved in legislation or government affairs, a new wave of challengesProposed legislation zeroes in on call centers and state contracts (government procurement)Proposed legislation also impacts immigration, national security, federal procurement, tax, trade, consumer rights, employee rights
Worldwide Sourcing Public Relations Issues
Publicity
Picketing
Boycott
Protection of Goodwill
Volatile issue
Election Year, condition of the U.S. economy
GAO Report to have preliminary findings available in early Spring 2004
Worldwide SourcingThe functions being sourced
Depends on the sector
White collar jobs
Call centers
Transcription
Claims processing
Portfolio management
Information technology (IT)
Tax preparation
Worldwide SourcingThe contracting issues
Will any of the legislation, if passed, affect your contractsYour company’s obligations – protect privacy
– protect proprietary informationVendor’s obligationLiability shieldTax reporting and complianceCompliance generallyIndemnificationJurisdictionLitigation/dispute resolution
Worldwide SourcingA topic blending and touching upon several issues
ACLI Contacts
Bruce Ferguson
- State Affairs - 202/624-2385
Victoria Fimea
- Constitutional Law Issues - 202/624-2183
Robbie Meyer
- Privacy Issues - 202/624-2184
Brad Smith
- International Issues/Trade - 202/624-2180
Dianne Sullivan
- Federal Affairs - 202/624-2106
Dianne Sullivan
- International Issues/Trade - 202/624-2180
