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Outsourcing - Essay Example

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Outsourcing begun in America in the 1970s but the industries that embraced the activity were not equipped to handle the results of…
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Outsourcing

Download file to see previous pages... The society relies on a moral responsibility to follow a system of values and promote human development. Repercussions of outsourcing are evident in America, and they are clearly unethical since American citizens are usually educated in America for the purpose of employment in the same region (Hira & Hira, 2008). Once a company outsources, these Americans face displacement from their jobs (Charara, 2012). Conversely, Asia will benefit since outsourcing leads to increased employment and training in its region. Outsourcing has also contributed to other immoral practices such as discrimination, sexual harassment, as well as wrongful termination of employees in US, Canada or Europe. Asian companies have realized the need to address such factors through devising appropriate insurance policies meant to cover factors such as data security, property, workers compensation, extortion, kidnapping as well as nationalization and all other forms of possible risks.
Presently, outsourcing has become common in America and it is a legal business activity. This is because firms need the freedom to conduct trade internationally besides being able to boost growth within America’s economy. Legal procedures that an outsourcing company follows demands signing of a contract that will cover an array of areas such as the risk of poor performance by the contactor, unforeseen charges, property damages or data loss. The client will also want clearly outlined procedure on how the business will run as well as the day-to-day management. Modes of handling termination or breach of contract are also necessary in the contract.
Positive business implications that are due to outsourcing involve acquiring competitive advantage in the market (Hira& Hira, 2008). This is achievable through costs’ reduction, improved quality, and exposure to advanced technology, availability of labor as well as the ability to combat ...Download file to see next pagesRead More
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