The Ethical Dilemmas of Outsourcing By Steven Mintz Outsourcing the preparation of income tax returns overseas raises significant ethical issues. Reports of the scope and size of the outsourcing market vary greatly, but the largest outsourcing companies claim that thousands of returns were processed during the tax season. Estimates for the season indicate the total may now be well into the hundreds of thousands.
Gjergji Gega Introduction The controversy surrounding outsourcing has intensified in recent years. While proponents view it as improving business performance by shipping support functions overseas and thereby allowing direct employees to focus on complex and core business functions, detractors view it as robbing domestic workers of good jobs by relocating them overseas to lower paid and possibly less qualified foreign workers.
In the business world where cost and efficiency matter, corporations have begun to take advantage of the benefits realized by tapping into the foreign workforce Fisher, Wasserman, Wolf, Wears, Corporations have begun to realize the rewards of cost-savings, convenience, and efficiency through outsourcing work to foreign countries, such as India, the highly educated English-speaking country Fisher et al.
As outsourcing strategies have become increasingly popular, questions have arisen about the legal and ethical consequences of such practices Fisher et al.
Cost The recent downturn in the United States economy has driven numerous American corporations to begin outsourcing and off shoring work to countries such as India, China, New Zealand, South Korea, and other countries where the cost of labor is significantly lower Ahmed, India is the number one country for Western corporate outsourcing.
One of the main reasons jobs are outsourced to countries such as India and China is because they have a lower standard of living compared to other countries.
This means that the wages, safety and health laws are not as strict as they are in the United States or Western Europe. Since wages, safety and health laws are not as strict as they are in the United States; this is very attractive to American corporations.
Although outsourcing may be seen as a business savvy move, there are some negative consequences. A lot of people have criticized companies such as Apple, Microsoft and Sony partnering up with the controversial corporation Foxconn. In allegations that Foxconn, headquarters in China with production in southern China, is a tech sweatshop and a human rights violator Rundle, The unfair pay and treatment of employees can have a negative effect on the products that they are assembling.
For example, Chinese workers who assemble Xbox counsels took to a roof and threatened bosses with mass suicide over a dispute about pay Rundle, According to Gartner Group, the total IT outsourcing market totaled over 70 billion dollars in and projected to grow over billion dollars in More than 70 percent of Fortune Companies use outsourcing at various levels of their IT activities, including software development Ahmed, With the vast amount of profit that corporations such as Microsoft, Apple and Sony make, they have a responsibility to see that the workers that are manufacturing their products are treated equally.
Advantages of Outsourcing The many advantages outsourcing provides to the business world make it an attractive option to many companies. Looking at all the advantages of outsourcing below you can see why these benefits, the countries that jobs are being outsourced to but also corporations.
Outsourcing non-core activities such as administration and back-office operations helps to put the focus back on the core functions of the business, such as sales and marketing.
The lower cost of operation and labor makes it attractive to outsource. Since the service provider is responsible for managing the workforce, you save costs and can also pick up the nest people to run your core functions. Bucky, Disadvantages of Outsourcing There are a lot of benefits to outsourcing, such as less time and resources spent on employee training.
Also there is a down side to outsourcing that may have a great impact on the company.
This might lead to lower sales, bad public image and also bad business. This may result in delays inaccuracies in the work output. Risks such as bankruptcy and financial loss cannot be controlled.
Bucky, Conclusion Outsourcing is not a new phenomenon; it has been a business practice for corporations since the s. During the past decade, it has gained momentum and negative attention from the international community.
With the economy still trying to recover, corporations are fi nding new ways to save, cut costs and time. Only in recent years has the public been showed to what horrible conditions that workers from where all these jobs are being deported have to endure daily.
Their rights as human beings and workers are being exploited not only by corporations but their own government.
There will always be countries that will not be as developed as others, but that does not mean that corporation can exploit that vulnerability. Reference Rano Ejaz Ahmed Abstract.
This article argues that the English legislative regime is ineffective in regulating international surrogacy, particularly with regard to commercial. Outsourcing is the practice of hiring an outside firm or individual to perform contracted work as an alternative to paying employees to do it.
Many companies use outsourcing based on expertise and. Also the “job-insecurity” is a big drawback of this kind of job. This can also be one of outsourcing’s ethical issues from an employer’s point of view.
The Ethics of Outsourcing. In this day and age, more businesses are outsourcing not only manufacturing jobs, but service related ones as well.
Ethical Outsourcing is the Key to Long Term Success. S ince a long time ago, the basic tenet of business has been to do business with the people you like. Similarly, even today, consumers prefer some.
Concerns regarding ethics in outsourcing practices Security Concerns: The core concern of outsourcing ethics is confidential information security. Companies need to be concerned about the security systems in place and about the safety of electronic data storage.
The Outsourcing Dilemma. Corporate America has been using cheap overseas labor for years. Does it make sense for your company? Corporate America, of course, has been outsourcing overseas for.