Outsourcing in a nutshell is the practice of hiring people from outside the company to perform general or specific tasks. This has been deemed a viable option for companies looking to grow their business but are limited with their available capital and resources. It has been recognized as a competitive strategy, however, there have been concerns about the ethics of this practice.
Although many companies have taken advantage of this option, the gray areas are still being explored and globalization has a lot to do with it.
Scratching the Surface
Outsourcing is a simple process altogether. You hire an individual to perform contracted services whether this person is residing within your country or on a different continent. The advantage of outsourcing lies in the fact that you can grow your staff with quality process operations all the while balancing it with affordability. In general, outsourcing doesn’t necessarily compromise business ethics because you simply just contract tasks rather than hire-full time staff to do them. It’s like having an office extension without the extra overhead.
The Patriotic Sentiment
The mere utterance of “outsourcing” has led to a lot of controversies over the past years with some people believing that companies have a moral obligation to protect citizens from losing their jobs to foreign workers. Many political candidates have touted this as their advocacy saying they have what it takes to preserve the economy and boost domestic employment.
Outsourcing is free enterprise that has taken over the global economy. Globalization is not something many have been able to warmly embrace yet if you look at a lot of companies who have come to terms with this, they now openly speak of a multitude of values they have gained from importing talent. Whether you find globalization good, bad or inevitable, there are ways one can come to terms with ethical outsourcing.
The Sweat-Shop Stigma
At the very core of outsourcing is the stigma of the Sweat Shop. This is what most people associate outsourcing with since the whole concept was born. A sweatshop is basically running manufacturing facilities in foreign countries where workers receive unfair wages and are forced to work in poor conditions. But these are also relative to western standards and laws.
If a company wants to maintain an image of good business and fair employment practices there are certain high-quality standards that have to be met. The way a company treats its outsourced workers tells a lot if the company is indeed a top provider. Such pressure is placed on companies who choose to outsource as many believe a business should promote employment over low-cost contractors.
Other Concerns In Outsourcing Practices
At the very core of outsourcing is the stigma of the Sweat Shop. This is what most people associate outsourcing with since the whole concept was born. A sweatshop is basically running manufacturing facilities in foreign countries where workers receive unfair wages and are forced to work in poor conditions. But these are also relative to western standards and laws.
If a company wants to maintain an image of good business and fair employment practices there are certain high-quality standards that have to be met. The way a company treats its outsourced workers tells a lot if the company is indeed a top provider. Such pressure is placed on companies who choose to outsource as many believe a business should promote employment over low-cost contractors.
Security is one of the main concerns about outsourcing. When confidential information is exchanged, infallible security systems and data storage need to be in place.
Service Quality is always feared to be compromised when outsourcing services offshore. Companies who dare go offshore need to generate a track record of vendor reliance and technical competencies to ensure smooth business operations beyond different time zones.
Environmental Issues are never too far from the list of implications when outsourcing offshore. Vendor companies need to comply with environmentally sound processes that will measure up to periodic audit standards.
Poor Work Environment is always a major concern in outsourcing especially when vendors are located in developing countries. Aside from stringent standards being imposed in offshore locations, offshore vendors are also subjected to periodic HR policy reviews.
The Alternative Solution: Ethical Outsourcing
Ethical outsourcing can come in different avenues. A company involved in manufacturing ensures its products are sourced and obtained responsibly and sustainably. Workers are treated fairly and enjoy equal opportunity benefits, and environmental and social impacts are both seriously taken into consideration in every project. What’s more, many companies who outsource offshore, have made their employment packages quite attractive. Whether they set up their own office spaces in the vendor location or hire an agency that provides both office space and service, companies know better to acquire vendors who offer competitive salaries and workspaces that are designed in such a way that outsourced employees feel they are highly valued assets of the company.
These days, companies that outsource offshore have taken it up upon themselves to maintain a competitive advantage in providing not only a good working environment for their employees. Maintaining high employee retention rates is a telltale sign that outsourcing vendors are doing things the right way. Employees are offered generous benefits and incentives that come with their local industry standard salaries and wages on top of other company treats, events and tokens provided year-round.
Leading players in the industry who outsource their services offshore are tuned into these best practices to address ethical outsourcing:
Data Privacy and Confidentiality Measures:
Firewall-protected networks, encrypted servers, and Virtual Private Networks are just some security measures companies have in place to protect its customers as well as its employees.
Open And Clear Communication:
When clear lines of communication are established, transparency drives productivity through trust and confidence. Policies and regulations should always be clearly defined and understood on both ends.
Legal Matters:
Every legal aspect involved in outsourcing relationships needs to be covered in detail through Service Level Agreements. Non-Disclosure Agreements with employees and third-party service providers need to be established clearly to ensure both parties are secured and protected by law.
Employee Selection:
A company’s reputation is only as good as the people who work for the business. To ensure the company, its employees and its customers are working together towards a common goal, a thorough background check of employees should always be conducted as part of the selection process. It is of utmost importance that each chosen employee is honest, responsible and adheres to ethical work policies.
Key Take Aways
Ethical outsourcing is the key to long-term success. The basic tenet of business was merely to do business with people, but today– consumers prefer companies and brands that employ transparency in their business practices and have a good reputation for treating employees fairly and with integrity. This principle generally applies to all companies today whether they choose to outsource offshore or not. If you’re looking to grow your business and want to explore the cost-efficient benefits of outsourcing, EVS Staffing is your gateway to growth. Schedule an appointment with us and let one of our virtual agents tell you more about how we employ ethical outsourcing in all our projects and partnerships.