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ethics of outsourcing
what are the ethics of outsourcing
what are the ethics of outsourcing
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Analyze whether the United States should outsource software development from several ethical viewpoints.
Introduction
Always act in your own self interest -- ex-boss
Many Santa Clara computer engineering professors ask their students where they are working. I am always surprised at the great number of students who are not. If these students are representative of the Silicon Valley job market, then its outlook is bleak. Many of these students' ex-jobs have been outsourced to lower cost countries such as India and now the Philippines. Software outsourcing has been a boon for such countries, creating many well paying jobs and stimulating their economies. Software outsourcing may also be a net benefit to the United States economy while hurting these students greatly.
Many people in other professions fear that the outsourcing wave will spread to their jobs. This fear has focused renewed attention on this previously software and manufacturing jobs issue. Many of today's arguments for and against outsourcing are based on ethical viewpoints. Many Americans argue that American companies should be supporting Americans or that the playing field is not level. In contrast, American companies almost invariably argue that it is their ethical obligation to maximize shareholder value. Many Indians and Indian companies argue that outsourcing has been a net benefit to America and that this trade promotes a common good. Some Americans take the opposite view, seeing outsourcing as a detriment to common good.
Utility Viewpoint
Outsourcing makes businesses more competitive, increasing their exports and their profits and placing more investment surpluses in their hands which can be deployed to make more jobs -- Indian Prime Minister Atal Bihari Vajpayee (1)
The utilitarian viewpoint states that an ethical question should be decided on the basis of the greatest good. Opponents measure utility for American workers and by implication the American economy. They argue that the loss of jobs will lead to the gutting of the middle class and the ruination of an economy based it. They point to the first net loss of American jobs in a Presidential term since Herbert Hoover as evidence. American programmers, in particular, are facing the highest unemployment rates ever measured for the group (2) despite an improving economy. American corporations in favor of outsourcing measure utility for the overall U.S. economy. They argue that outsourcing allows resources to be freed for greater innovation and that outsourcing promotes trade. These, they argue will ultimately create jobs. Opponents counter that what jobs are being created tend to be lower paying service jobs.
For advocates of global business, the hope is that outsourcing will help lift the United State’s economic growth and development by lowering the input cost of services (i.e. labor and materials) and by opening new markets abroad. Mainstream economists believe that outsourcing will have ...
As the problem of job outsourcing becomes more of an issue in politics, elected officials like the President and Congress will no longer be able to ignore the dilemma. The war in Iraq has been at the forefront of the presidential race but the importance of outsourcing American jobs seems to have been slightly overshadowed. If the issue of outsourcing is not watched carefully and a definitive plan hammered out, a trickling down of negative effects may occur within the U.S. economy. However, there is a polarized opinion on the effects of this “phenomenon”.
Since the concept of outsourcing was introduced it has been a subject of debate between politicians and citizens of the United States. Remarkably, it was the United States who supported outsourcing and now it is the United States that feels its economic progress is being threatened by outsourcing. One may argue that the financial situations that existed two decades earlier are not the same as they are today, thus the change of time, business priorities of economies have also changed.
This report is extremely credible and qualified, as it was written by an author who is well-versed on the topic. The author was also the Assistant Secretary of the Treasury in the Reagan administration, making him even more authentic source. Throughout the article, the author discusses and examines the words of two other authors, Ron and Anil Hira, who are experts on the subject of American Outsourcing. These authors are also very credible; one is a professor at the Rochester Institute of Technology, and the other is a professor at Simon Fraser University. Additionally, the author refers to many case studies that were taken at different universities in order to justify his claims on why American Outsourcing is bad. The intended audience is
One of the hottest trends today for big corporations is outsourcing and offshoring. Outsourcing simply means a company based in one nation will hire from other nations in order to more efficient accomplish its goals. It makes sense on the part of the corporation, why pay a programmer in the US $80,000 a year when they can pay a programmer in India less than 1/10th of that salary, and make him a very happy man. This because even when he is earning 1/10th of the US salary, he is still earning more money than he ever hoped to get in that industry in India. It seems like a win-win situation1, but there is still a loser: The growing unemployed population of the US. As more jobs go overseas, more US citizens are finding themselves becoming obsolete.
Kibbe, C. (2004). Outsourcing” the good, the bad, and the inevitable. New Hampshire Business Review, 26(14), 1A.
Globalization along with the rise of information technologies, have led to changes in the global business arena. Outsourcing is when a business hires another entity to perform their functions. It can be on-shore (in the same country) and off-shore (in other country), but this paper will be based on off-shoring since the Global aspect has to be taken in perspective. First off the emergence of outsourcing will be discussed followed by the reasons and scope of outsourcing. Then the paper will focus on the benefits and drawbacks of outsourcing.
With the United States’ economy in a depression and our unemployment rate skyrocketing to record highs, job-outsourcing has moved to the top of the list of controversial issues. Froma Harrop’s essay New Threat to Skilled U.S. Workers and Thomas Friedman’s essay 30 Little Turtles discuss two different viewpoints of job-outsourcing, and their effects on society. Does our government really want to cut back on job-outsourcing, and what can society do to help the issue? Friedman’s standpoint on job-outsourcing shows how it is emotionally beneficial to other countries and Harrop’s factual standpoint shows job-outsourcing regulation, however, I feel that our citizens are unaware of the opportunities and our government is eager to send the jobs overseas.
In this paper, I will discuss the ethics of outsourcing manufacturing from my local community to a developing country. I will view this debate through three different frameworks: Utilitarianism, Pragmatism, and White’s biblical principles. I will also conclude my final view on outsourcing and the benefits of using a framework for making ethical decisions.
Outsourcing is when a company or business decides to contract part of their services that they do not do well to an outside company. There is two types of outsourcing offshoring and nearshoring. Offshoring is where a company outsources abroad and, nearshoring is outsourcing within the home country. The reasons that a company decides to outsource varies from company to company but, the most common ones are cost reduction, increasing globalization, growth , tax incentives, government support and access to new markets. However there are some key challenges that come with offshoring and those key challenges are quality and labor retention. ( Bacon, 2007 p 38-39). Asian outsourcing began as early as the 1960’s (Espana 2013 p 3). Some people argue that offshoring is good for the economy even though it’s a well know fact that offshoring has a negative effect on the economy, there is wage differences and the unemployment rate increase.
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 “Outsourcing: the good, the bad and the inevitable” focuses on United States (U.S.) job impact. Van Heerden’s 2010 speech “Making Global Labor Fair” focuses on human rights impact.
Kibbe, C. (2004, 07 09). Outsourcing: the good, the bad and the inevitable. New Hampshire Business Review, pp. 1A-21A.
Outsourcing raises an ethical issue, as so many blue collar workers, as well as well-educated white collar workers in the US have lost their jobs due to outsourcing. Especially, many who work in the field of technologically advanced services and software were exchanged for the workers in poorer countries for cheaper labor costs. Many of the multinational companies moved their manufacturing sectors to Mexico, China, or India. According to the article, "The Battle Over Outsourcing" (2004) by Bob Davis, et al. illustrates that many of the software programming work has been relocated to India over the years. Offshore outsourcing started with low-income jobs such as call center operators, and spread to high-paid computer ...
Outsourcing is, “practice of having certain job functions done outside a company instead of having an in-house department or employee handle them” (Entrepreneur.com 1).With every choice comes consequences some are benefeicial some are negative. Outsourcing benefits are saving money to expand business. Interviewed by CNN, Mike Scanlin, a small business owner, has saved half a million dollars due to outsourcing. Instead of paying someone $150 an hour in the U.S he pays people on the eastern hemisphere $15 an hour. There are many other business who have performed such task such as Allstate, AT&T, Coca-Cola, Expedia, and many more. Outsourcing also comes with a hard price: job loss. Techsunite.org states that outsourcing is a terrorist threat and that over 500,000 jobs have been outcourced since 2000 and over 250,000 were lost due to outsourcing. Outsourcing has been one of the top ten ways to lose a job since 2000. There has been over thousands of companies that outsource jobs abroad. Also, their are companies considering moving to the outsource method; which means more job lose. When people lose their jobs they lose their homes when intell makes them homeless. Large homeless rates make our american pride questionable. The question becomes are we really united or are we cheap? If all companies stopped outsourcing and kept all jobs here in the U.S the homeless rate would decrease dramastically.
Outsourcing has been around for many years. In this paper I will discuss some of the history of outsourcing, the goods things about outsourcing, and the bad things about outsourcing.