Question

ETHICAL INQUIRY OF outsourcing in the United States?

Answer 1

Companies face a lot of problems of outsourcing when seeking to move workers to cheaper locations. Many of them have to do with indignation against outsourcing of employees while other issues have to do with the ethics of outsourcing activities at the vendor place. Many of the issues related to the ethics of offshore outsourcing activities include:

Poor work environment at vendor location: concerns about poor work environment and exploitative HR policies in the BPOs (Business Process Outsourcing) of developing countries may have been the reason why the earliest outsourcing vendors were identified as 'sweat shops.' Such issues are all but gone now, though, as more and more consumers visit vendor locations and see the reality of convenient, state-of-the-art work centres.
Drop in the standard of service: Most businesses that plan to outsource must bear in mind the standard demands of workers and shareholders.

Environmental issues: With the increasing understanding of the environment in the United States and the developing countries, outsourcing firms are worried that vendor firms may conduct processes that damage the environment.
Cultural differences: For any outsourcing company, the cultural differences between the two countries are always a cause for concern. Companies in the United States are deeply worried that in the country where they want to outsource they may have to deal with regulatory problems, bribery and language barriers.

Outsourcing hurts the local economy: Outsourcing has hit the headlines with a vengeance in recent years. There was an out-of-the-box attack against outsourcing, with the main reasons used including not helping the local economy, rising wages and losing local employment. Many critics raised the red warning flag that outsourcing would adversely impact future generations.
Legal liability: The problems of copyright and legal responsibility of the outsourcing company's work are ticklish concerns that need to be discussed.
Outsourcing may lead to intellectual theft: Another problem could be that the outsourcing company likes the company's ideas, copies them and begins its own activity