Offshore Outsourcing

Topics: Outsourcing, Offshoring, Offshoring Research Network Pages: 3 (772 words) Published: December 11, 2010
Laudon and Laudon (2007) stated, “If a firm does not want to use its internal resources to build or operate information systems, it can outsource the work to an external organization that specializes in providing these services” (p. 505). Many companies utilize offshore outsourcing to cut costs. “Based on this misconception, many companies have explored the opportunities in emerging countries, where inexpensive skilled labor might give rise to cost savings and productivity.” (Modarress & Ansari, 2007, p.165) Offshore Outsourcing Ethical Dilemmas

Offshore outsourcing can create an ethical dilemma. The dilemma is that because many companies utilize offshore outsourcing that it limits the availability of jobs for the home team. There are well-qualified individuals in the same country that companies operate that utilize offshore outsourcing. Many times these individuals are overlooked. They are being overlooked because outsourcing offshore offers a very low cost. If it saves money then any company will be interested in these types of outsourcing. It is unethical because the companies are not offering these job opportunities to the qualified individuals where they operate. As citizens of one country lose their jobs to another country, it raises concerns. Will it be more beneficial to keep the jobs in the home country or reflect large unemployment numbers and higher production costs? This creates an unbalance in feelings towards offshore outsourcing amongst individuals versus companies. Pellet (2007) stated, A confluence of factors is driving this trend, In a world where great ideas are quickly assimilated across global markets, continual innovation is crucial to competitive success” (p.37). Overall, the unethical dilemma of offshore outsourcing is it eliminates jobs that would normally be beneficial to qualified individuals of the country in which the companies operate. Restricting Offshore Outsourcing

Restricting offshore outsourcing really depends on...
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