Ethics of Outsourcing Essay - 1500 Words

Ethics of Outsourcing What is ethics and how is it related to todays world of business? Merriam-Websters Online Dictionary defines ethics as the discipline dealing with what is good and bad with moral duty and obligation. In todays globalized society, it seems as though monetary profits are valued higher than making ethical decisions. Outsourcing has become an unavoidable result of globalization. From General Motors to IBM, we can experience the effect of outsourcing in many different sectors of our lives. Outsourcing has brought many economic advantages, and it has greatly enhanced productivity and growth of industries across countries. However, despite such benefits, outsourcing also generated a variety of social, political,†¦show more content†¦Among many of the multi-national corporations, IBM has been one of the pioneers of outsourcing in the IT industry. William M. Bulkeley (2004) explains in the article New IBM Jobs Can Mean Fewer Jobs Elsewhere, that IBM purchased Daksh eService in 2004 t o absorb 6,000 Daksh employees to expand IBMs India-based workforce. Truthfully speaking, the primary goal of most multi-national corporations is to acquire financial benefit. For that matter, thousands of US workers replaced to cheaper laborers in China or India help the outsourcers to reduce the manufacturing costs. However, the ethical issue springs from the fact that not everybody benefits from the offshore outsourcing. The estimated 200,000 service jobs shipped abroad means the extensive number of US workers who lost their livelihood. Although outsourcing has become a fast developed trend around the world, it became a threat to American workers. However, in business, the ethical issues are often neglected to create economic gains. After all, international business has opened huge markets for the United States products and has provided customers with new and cheaper goods. Bulkeley (2004) argues that IBM engrosses about $15 billion a year from outsourcing, which is 17% of the to tal revenue. With the advancement in shipping and telecommunications, it is easier than ever before to sell products and services across the world. IfShow MoreRelatedOutsourcing Ethics604 Words   |  3 Pagesoutsource job functions. Outsourcing allows companies to grow and expand their business around the world. Many have attributed outsourcing to lowering operating costs, a method to increase expertise and gain additional technology, and as a way to improve efficiency and services. These advantages can help a company gain a competitive advantage over industry participants. When a company strategically plans to outsource ethical consideration must be acknowledged; especially when outsourcing is offshore. AsRead MoreMGMT 310 Unit 3 IP1098 Words   |  5 Pagesï » ¿ Unit 3 – Outsourcing American InterContinental University Abstract While faced with competitive markets and globalization, companies are always looking for ways to improve their overall cost and pricing structure. It is becoming increasingly more difficult to maintain quality levels of service while providing good and services at rates where companies can remain profitable. As companies compete in a global market, several challenges are prevalent. As the business worldRead MoreEssay on Ethical Implications of Outsourcing1164 Words   |  5 Pagesof Outsourcing Shawn Schneider University of Phoenix Michael Osby MGT216 May 18, 2009 Ethical Implications of Outsourcing For several years, many companies have turned to outsourcing income tax preparation and income tax return filing to companies in other countries to improve performance. The act of outsourcing a company’s tax preparation is reasonable if the company is confident with the servicing company which is contracted; by outsourcing oneRead MoreOutsourcing: Lets Get It Right Essay1208 Words   |  5 Pagesreceived by the consumer in good conscience, void of human ethics violations, regardless of where the product or service originates; and consumers should not patronize companies that cannot ensure this trust. This paper provides rhetorical analyses of two presentations pertaining to outsourcing. Neither particularly opposes outsourcing, yet each provides information addressing two different outsourcing concerns. Kibbe’s 2004 article â€Å"Outsourcing: the good, the bad and the inevitable† focuses on UnitedRead MoreThe For A Specialist Laborer804 Words   |  4 Pagesemployees, environment and one’s own particular wellbeing than outsourcing labor at the Internet. Hence, it can be stated that the outsourcing transformation is bringing millions, perhaps billions of low wage individuals onto the world platform. If one think of outsourcing from the capitalist lenses, it becomes easy to disregard moral concerns linked with outsourcing. On one hand, the developing nation tend to get advantage from outsourcing through increased training and employment, while companiesRead MoreEthical Issue And The Ethical Dilemma882 Words   |  4 PagesLeadership Ethics Introduction In this week’s assignment, we have been asked to identify an ethical issue presented in the Devise Products Unlimited (DPU) case study. First we will discuss the issue and the ethical dilemma it creates. Next we will look at possible recommendations for the DPU CEO to handle this issue. The Ethical Issue First, let’s start by looking at what the ethical issue that DPU is facing. The issue that I have chosen to focus on is issue two from the case study:Read MoreOutsourcing And Its Advantages For A Company1225 Words   |  5 PagesEXECUTIVE SUMMARY Outsourcing can have more disadvantages for a company if the company does not take major precautions before proceeding. The purpose of this report is to (1) identify major IT outsourcing risks. (2) How to minimize the risk to out rule the disadvantages. There are many steps to successful outsourcing; here are the main ones gathered from the research. †¢ Be discreet when selecting your vendor , analyse there previous work †¢ Consult with an attorney before signing the contract †¢ MakeRead MoreOutsourcing A Business Is A Risky Affair1445 Words   |  6 Pages Outsourcing Rohit Negi Introduction: Companies are increasingly urged to rethink their sourcing strategies, choosing between in/out, Domestic/international sourcing. Several motivations (e.g. cost reduction, flexibility, access to new technologies and skills, focus on core activities) are encouraging them to outsource and/or localize their (ITRead MoreBusiness Ethics Essay1496 Words   |  6 Pagesï » ¿LAW ETHICS IN THE BUSINESS ENVIRONMENT 6e Test Bank Revisions for the 7th edition by Eric D. Yordy, The W. A. Franke College of Business at Northern Arizona University CHAPTER 1 Law, Ethics, Business: An Introduction Questions 1. Select the best definition of ethics: a. a fairly clear cut set of guides for decision making. b. a set of relatively unclear principles regarding what we must do. c. a set of relatively unclear principles regarding what we should do. d. religious viewsRead MoreCross-Cultural Perspectives: Evaluating the Ethical and Social Responsibility of Software Outsourcing at Oracle1116 Words   |  4 PagesEvaluating the Ethical and Social Responsibility of Software Outsourcing at Oracle Introduction The ethicacy and social responsibility involved with the development of an effective software outsourcing strategy is a dilemma many American software companies are facing today. More specifically, the ethics of paying for software to be developed in third world nations including India, Pakistan and China for use in the United States, potentially in companies whose role is critical to national defense