Ethical Responsibilities When Outsourcing

On February 18, 2012, in Outsourcing, by Business Development Group
Outsourcing enables businesses to find qualified contract labor at costs often substantially lower than hiring and training employees themselves. As outsourcing shows benefits, companies somehow face ethical dilemmas when choosing outsourcing as a business model.

Outsourcing enables businesses to find qualified contract labor at costs often substantially lower than hiring and training employees themselves. As outsourcing shows benefits, companies somehow face ethical dilemmas when choosing outsourcing as a business model.

A number of industries outsource services such as call center, customer service or transcriptions. Corporations outsource services instead of hiring in-house professionals in order to save money and remain competitive. Outsourcing enables businesses to find qualified contract labor at costs often substantially lower than hiring and training employees themselves. As outsourcing shows benefits, companies somehow face ethical dilemmas when choosing outsourcing as a business model.

Work Environment

As the drive to keep prices low, outsourcing businesses, especially those overseas adheres in treating workers fairly. Reports of hiring minors, offering very low hourly wages, forcing workers in working long hours or forcing employees to work in unsuitable environments such as small, crowded offices with no proper ventilation. It is very essential to inquire about the outsourcing company’s compensation, scheduling and local laws determining whether the outsourcing company treats their employees ethically.

Offshore Outsourcing

In some instance, businesses faces an ethical dilemma when choosing to outsource overseas. Companies often outsource services to foreign countries such as The Philippines, China or India, known as offshore outsourcing, because these countries supply qualified computer professionals at low costs.

Investments

Sometimes, businesses once they find out they can receive the same services for less money by outsourcing. Businesses may help company employees feel more comfortable with the process by explaining their business decision to outsource. Transparent communication keeps employees from wondering if their job is on the line, if and when they may get their job back, provides advance notice to, and allows the employee to receive due compensation for the job.

1 Response » to “Ethical Responsibilities When Outsourcing”

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