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Business It Outsourcing – Ethical Issues

Ethics is a very important aspect of any business. Without ethics a business is as good as dead. Businesses that do not embrace good ethics do not have a long lifespan. Ethical issues may differ from one profession to another. However ethics is generally the same in all the professions. Business it outsourcing also has a few ethical issues. They include the following;

Very many companies face ethical dilemma when outsourcing IT services to overseas countries such as India and China. They do this because these countries have qualified people who offer quality services at a low price. Most Americans feel that outsourcing is unethical because it leads to loss of jobs. However the companies that outsource the services defend themselves by saying that if they refrain from outsourcing, they would not be competitive and that could lead to business closure which will definitely lead to more job losses. Hence instead of shutting down their operation because they can’t keep up with the competition, they opt to outsource the services, lay off a few employees and remain competitive in the industry.

Another ethical issue in business it outsourcing is work environment. Some outsourcing companies threaten their employees when they ask questions. They also subject them to harsh working conditions such as working in a crowded office that may lack proper ventilation. The remuneration is also very low for these employees. The labor force in the countries where these outsourcing companies operate from is so high such that there is excess supply of labor. You should ask questions such as employee compensation before hiring the services of an outsourcing company. That way you will know whether the employees are threatened or not.

There are some business that lay off employees harshly or without prior notice. This usually happens immediately if they find out that they can get the same services at a lower cost. Businesses should make the employees comfortable during the layoff process. You should also explain to them why you have decided to outsource the services. That way they will leave the company without much drama. They will also remain loyal to your company. You should also ensure that there is transparent communication between the management and the employees. That way they will not keep guessing about the security of their job. These are the main ethical issues in business it outsourcing. Abiding by them will help improve the image of your company.

Daven Michaels Author of the book Outsource This!

9 Responses to “Business It Outsourcing – Ethical Issues”

  1. Jennifer says:

    I came to this page to find out if 123 Employee was an ethical company that treated its employees well. I did not come to this page to read about business ethics of outsourcing in general.

    Can you tell me about how the employees at 123 Employee are treated and compensated? Before using your companies services I would like some detailed information about this.

    Thank you,
    Jennifer Luth

  2. Angie says:

    Technology is crucial to outsourcing and I must say I was impressed by what I saw in the Philippines during my last visit, high speed broadband and a horde of highly skilled people… just impressive

  3. Isabelle says:

    Good information Daven.


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    Well done,Daven!!!!

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