It is not a secret that the mere mention of the word "Outsourcing" incites significant debate. In fact, in every US presidential election, outsourcing is always a hot topic as Presidential nominees keep promising the preservation of American jobs in lieu of outsourcing. At the same time, businesses always look towards ways of making a profit, and outsourcing, by and large, helps them achieve their goals. Although a global phenomenon, there are certain arguments against outsourcing which do make sense, including:
Companies that outsource have often had to face resistance and complaints about a drop in quality when moving jobs. In the early days, outsourcing was seen as a cost-saving measure, with an expectation of low-quality output. Things have changed drastically since then. Outsourcing relationships now define quality as one the main deliverables, among others.
One of the pitfalls of failed outsourcing relationships is not being able to identify the right partner for a company's outsourcing needs. There are a few so-called outsourcing providers who charge rock-bottom prices that have attracted companies. While a few of these sweatshops might succeed in the short term, companies dealing with them have had bitter experiences with low quality output, mismanagement of resources and security issues, etc.
Below-par work environments and shoddy HR policies are two other reasons that critics often quote to describe how 'body shops' have sprung all across India to meet outsourcing demands from the West.
Companies that outsource work have very little control over how their partners are functioning on the other side of the world, and many global organizations such as Foxconn and Nike have had serious blows dealt to their images by partnering with clients who employed children and women in excruciating conditions without paying them equal to the effort provided.
Often times, companies have found themselves at the receiving end of legal or copyright issues by outsourcing their work to a less-than-reliable offshore service partner. There are many legal repercussions associated with outsourcing confidential work such as HR practices, payroll, secure transactions, etc. If not cleared with your lawyer team and unless bound by specific clauses, there is always a high probability of legal repercussions that your company can ill-avoid.
The ethical dilemma in offshore outsourcing therefore arises from a single, important question - Should you outsource? Ever since outsourcing caught on in Western countries, there has been some opposition to it. A loss of jobs in the host country has been touted as the main negative effect of outsourcing.
While the argument is valid, companies have outsourced many of their functions to stay competitive in a fast paced market. Organizations hire specialized companies, not necessarily outside of their country, to outsource many tasks that could be better handled by a vendor. The biggest benefit of outsourcing is that not only does it save costs for a company, but also gives it access to resources and skill-sets that wouldn't have been possible locally.
Outsource2india has built a reputation for educating customers about both the advantages and disadvantages of outsourcing. Our ability to work with a business's goals rather than focus on specific projects has helped us forge strong relationships with customers across the globe. Our processes comply to international guidelines, and we are more than happy to take you through our facilities so you can gather a first-hand experience of what it is to work with a truly international service provider and avoid costly outsourcing risks.
Contact us right away if you have any queries about outsourcing, and our representatives will gladly help you out!