Washington: Outsourcing of hi-tech jobs to India, China, Russia, the Philippines and elsewhere has become an issue which is being debated in the Democratic primaries and in the US Congress, with current Democratic frontrunner in the Presidential race, Senator John Kerry, calling companies which outsource "Benedict Arnolds".

The name refers to an American "traitor" who defected from the ranks of American revolutionaries to join the British colonists.

Kerry was quoted by 'Contra Costa Times' on the West Coast as denouncing the Bush administration for "rewarding Benedict Arnold CEOs who move profits and jobs overseas".

Kerry had also introduced a Bill in November that would require call centre operators to disclose their physical locations to consumers with the aim of discouraging the practice.

Howard Dean, the former Vermont Governor who is fighting to continue in the Presidential race, has told audiences that America needs a President "who doesn't think that big corporations who get tax cuts ought to be able to move their headquarters to Bermuda".

Income can be transferred by American corporations to Bermuda without being subjected to higher American taxes.

The 'Contra Costa Times', which credited Bush for an economic recovery, however, questioned job growth, claiming only 1,000 jobs were created in December, a fraction of the 300,000 new jobs projected by the Bush administration.

"As the temperature rises over disappointing job growth, the controversial practice of 'offshoring' has worked its way into the rhetoric of the Presidential campaign trail," it wrote.