Tennessee buys American.

• Position: Trends And Transitions - Brief Article

The controversy over offshore outsourcing of state government contracts produced its first law in May. Tennessee passed legislation authorizing preference points for American companies when awarding state contracts. The law gives advantage to companies that operate within the United States and hire American workers for data entry and call center work.

Preferences are not new for state procurement officers. The Tennessee legislation is significant, however, because it is the first offshore outsourcing bill to make it through both chambers of the...