OUTSOURCING
Joel Gomez
Florida International University
CGS 3095 Section November 2015
Abstract
Whether or not to outsource?. This topic has been in major debate as it has massive ethical effects around the world. This paper will not only go in depth into the pros and cons of outsourcing, but it will also discuss the ethical effects that it has on the world and what should be considered in the future.
• Introduction
Outsourcing is a major trend that continues to grow within companies to reduce the cost of products and services(). Although this maybe a short term effective way in doing so, this practice has raises ethical concerns such as job displacement, social cost and the …show more content…
Outsourcing has given companies a way to reduce the cost of operations, labor wages and also taking advantage of the reduce corporate tax rates(). For example a US company contracting employees from India to handle services can pay the employee a fraction of the price that they would pay an employee based out of the US.
Another reason why companies have elected to outsource is because it has given them the opportunity access and hire world talent to handle their services; if a company is not an expert with a specific area such as IT and human resources (HR) they can contract an outside company to handle these services at a reduced rate. These key components listed leads to another main reason which is flexibility. Outsourcing provides companies flexibility to expand or downsize when it's …show more content…
Although there are many positive reasons as to why companies have decided to start outsourcing certain jobs there are many negative results to this practice. A company that decides to outsource certain services runs a significant danger of exposing confidential information to other third-party companies; sensitive information such as payroll, internal services and intellectual property rights become accessible to foreign labor workers. This access to sensitive information runs a great danger since the employee overseas does not have to abide by the same laws that are applied back in the
Joel Gomez
Florida International University
CGS 3095 Section November 2015
Abstract
Whether or not to outsource?. This topic has been in major debate as it has massive ethical effects around the world. This paper will not only go in depth into the pros and cons of outsourcing, but it will also discuss the ethical effects that it has on the world and what should be considered in the future.
• Introduction
Outsourcing is a major trend that continues to grow within companies to reduce the cost of products and services(). Although this maybe a short term effective way in doing so, this practice has raises ethical concerns such as job displacement, social cost and the …show more content…
Outsourcing has given companies a way to reduce the cost of operations, labor wages and also taking advantage of the reduce corporate tax rates(). For example a US company contracting employees from India to handle services can pay the employee a fraction of the price that they would pay an employee based out of the US.
Another reason why companies have elected to outsource is because it has given them the opportunity access and hire world talent to handle their services; if a company is not an expert with a specific area such as IT and human resources (HR) they can contract an outside company to handle these services at a reduced rate. These key components listed leads to another main reason which is flexibility. Outsourcing provides companies flexibility to expand or downsize when it's …show more content…
Although there are many positive reasons as to why companies have decided to start outsourcing certain jobs there are many negative results to this practice. A company that decides to outsource certain services runs a significant danger of exposing confidential information to other third-party companies; sensitive information such as payroll, internal services and intellectual property rights become accessible to foreign labor workers. This access to sensitive information runs a great danger since the employee overseas does not have to abide by the same laws that are applied back in the