- 21/11/2012
- Posted by: essay
- Category: Free essays
Let us give some fact about the companies that used outsourcing already. For example, according to Bosniak and others: “system designers in the United States working closely with the retailer may conceive the inventory-management software that helps use electronic product tags more effectively. But once the system has been mapped out, the actual software code can be written by programmers in India. All sorts of adjustments are being made in this complicated world”. (Bosniak and others, 2005) According to official fact presented in Hira & Hira we see that “in 2003, Delta Airlines outsourced 1,000 jobs to India, but the $25 million in savings allowed the company to add 1,200 reservation and sales positions in the United States. Large software companies Microsoft and Oracle have simultaneously increased both outsourcing and their domestic payrolls”. (Hira & Hira, 2005)
Here are some other facts about the outsourcing among different companies and Linder stated that in the United States: “In total, about 400,000 U.S. positions in information technology have gone offshore. Meanwhile, total U.S. employment rose from 129 million in 1993 to 138 million in 2003, mainly in services. It turns out that, contrary to much of the heated public discussion, the international movement of services is very positive to the American economy”. (Linder, 2004)
We can see that outsourcing is bringing great profits to companies. It is true that great deal of them is looking for opportunity to use an advantage of less paid labor. Taking a foreign outsourcing for saving costs could have non-positive results for a company. It could also decrease productivity of a company. Instead of investing costs in technologies and improve productivity in this way, a company tries to increase an unreal productivity by employing new people locally and send a work to less productive opportunities. It seems to be more productive just because local people could be paid fewer salaries easily. Some managers consider this way simple and acceptable.
If we remember that, some countries have no enough techniques and tools for people to work, we can see that outsourcing bringing profits because of low salaries that a company pays local people. At the same time, workers of a home country, for example, the Unites States of America, bringing income because they are using machines and it gives them an opportunity to do more works.
Some companies want to organize the foreign outsourcing especially for the purpose of saving money. Managers know that it is not possible to pay fewer salaries for American workers and they can decide to use foreign labor. Some countries are in the way of their development so there is lack of working places there. Many people are gladly ready to get a work in the local branch of a foreign company. Managers are paying such people much more less money than they pay for the same work in the home country of a company.
Is it unethical to pay cheap wages or are companies doing those workers a favor? Sometimes people from a developing country could work with hand tools but fact shows us that often it is more productive for a company than labor of those workers who are employed in the United States and using computer controlled machines. It is true that every single worker suppose to be paid according to his or her educational level and according to a kind of job he or she is doing. Some easy types of job are easy and they do not require a worker to have special skills or education. It is fair enough to pay that worker less then manager, for example. Nevertheless, some companies decide that salaries of their offshore workers could be less than salaries of the same specialist in the home country. It is not ethically because every country has its own law that declare people’s rights to get a job and salary that fit their charge. As we can see, workers from offshore branch of a company are doing the same work and taking up on themselves the same responsibility with those workers who are working in the home brunch of the company. It is not good if a company decides to pay workers from the foreign brunch less salary just because managers want to increase income of a company.
Another reason why it is not ethically to pay workers abroad salary that just enough to live on is that offshore branch of a company is also bringing profits. As we discussed above, foreign branches are often bringing even more money than home branch. It means that those workers are also educated and they have high level of education enough. They are also good and professional workers and such kinds of workers suppose to be paid conformably. Sometimes situation looks like a slavery. World history knows hundreds of years when one nation was serving to other nation and masters cared just about some food and some cloth for their workers. There was no way for those workers to increase their wealthy. At the same time people of “ruling nations” had more means than they really needed.
As we remember, slavery was abrogated and now everybody consider those time dark pages of world history. It is true that today everybody has a right to get an education and a good job. According to Ganesh we see that the problem is that in some countries there are no enough working places for all specialists (Ganesh, 2007). It is also hard to find a good job in developing countries, for example, in some African and Asian countries. American companies that decide to outsource could think that they are doing that countries a favor – a company brings a part of actives to a foreign country and giving extra working places for the local population. That is why the ruling body of a company can set a low salary for those workers just because they already have done enough for them. This way of thinking looks old-fashioned. It is the way of thinking that was common for so-called “ruling nations” of past.
Why it is unacceptable? First of all, because it is humbling the human dignity. According to human’s right, two different people who are doing the same work for the same company suppose to get the same salary even if they are doing those work from different countries. If not, it means that a company considers their foreign workers as a people of second quality. It is not ethically and also it is decrease the prestige of a company.
This problem is open now. Various organizations are working on laws that could provide a good conditions and good salaries for foreign branches of companies that decide to outsource. This practice showed itself as profitable and useful. That is why more and more companies in future will use this way of getting new markets.
For the conclusion it is necessary to mention that we hope some time international law will monitor outsource. It will help local workers who are employed by foreign companies to have good salaries and work conditions. Moreover, it will help different countries to become equal partners and show each other mutual respect.
Works cited
Bosniak, L. and others. Working Borders: Linking Debates about Insourcing and Outsourcing of Capital and Labor. Texas International Law Journal, Vol. 40, 2005.
Ganesh, S. Outsourcing as Symptomatic. Class visibility and ethnic scapegoating in the US IT sector. Journal of Communication Management, 11.1: 71-83, 2007.
Hira, Ron & Hira, Anil. Outsourcing America: What’s behind Our National Crisis and How We Can Reclaim American Jobs. AMACOM, 2005.
Krishnan, J. Outsourcing and the Globalizing Legal Profession. William and Mary Law Review, Vol. 48, 2007.
Linder, Jane. Outsourcing for Radical Change: A Bold Approach to Enterprise Transformation. AMACOM, 2004.
Leave a Reply
You must be logged in to post a comment.