Outsourcing

Outsourcing may be defined as the practice of transferring production or services that were once performed in-house to an external source. The outsourcing organization is most commonly a for-profit [Page 1556]enterprise, although governmental agencies are increasingly outsourcing services. Global offshoring refers to the practice of sourcing production or services to multiple offshore locations. While labor savings can be substantial, improvements in efficiency, productivity, and quality drive much of the demand for highly skilled, offshore workers. Typically, such globalizing strategies enable multinational corporations (MNCs) to meet increased demand and offer goods and services to customers at lower prices while enhancing profits.

Ethical issues regarding global outsourcing may be usefully separated into public policy questions concerning the establishment of a just regulatory policy and questions regarding the ethical ...