Large companies, specifically the ones with revenues surpassing $1 billion in the US, may soon have to reveal how much of their processes are being outsourced to offshore locations once the house bill ‘Outsourcing Accountability Act’ proposed by Rep. Gary Peters (D-M) and co-sponsored by Reps. Tim Bishop (D-N.Y.) and Jerry McNerney (D-Ca.) is ratified. The firms will also be obligated to indicate their domestic and offshore employment activities, as well as a detailed report that shows which countries their outsourced employees come from.
Furthermore, the bill is set to lessen the ambiguous employment figures declared by renowned companies such as IBM, Pfizer, and Apple. All of them publicly share the number of employees, but not the exact number of those who are working overseas. Also, from 2000 to 2009, 2.9 million jobs were lost in the US, while 2.4 million were created abroad.
According to Peters, this will not make things harder for companies as they already have the needed information, and it is impossible for them to not know where they send their pay checks.
Moreover, a report posted August of last year showed that companies that do not disclose exact data are also appealing for tax breaks under the impression of creating jobs, but since lawmakers are presented with vague figures, they cannot monitor which companies are actually creating jobs.
General Electric (GE) and Wal-Mart are some of the large companies that have shared the exact numbers of employees who are working abroad. For GE, the number of US-based employees decreased from 54 percent in 2000 to 46 percent in 2010.
Peters added that correct data will help consumers who want to support American workers easily identify these companies and provide more information for investors.