Monday, 2 August 2021

How do you ethically outsource?


In short, outsourcing

Most people in companies are familiar with the concept of outsourcing, where one company outsources the process to another company. This is a very common practice that allows the core of your business to continue to focus on your core goals. From the broadest point of view, anyone who uses postal services is outsourced. Of course, members of your company can get in your car and deliver your products in person, but this will be very inefficient and expensive. By outsourcing this process to others, you can ultimately save money, time and hassle. Other typical outsourcing tasks might include data entry, technical support, batch editing, or product manufacturing In fact, any task can be outsourced from anywhere in the world.

The potential benefits of outsourcing for small businesses

Outsourcing enables companies to obtain the expertise they need when they need it, while maintaining the integrity of their core business. This avoids retraining or reallocating resources within the main company. Hours of support. (Overseas outsourcing) One of the most popular forms of outsourcing is outsourcing. The difference in labor costs and economics means that you can usually save a lot of money when performing tasks in places like India or China, but as we will see, if not handled properly, this can have a negative impact on your brand image.


Although outsourcing is a widely used practice, there are still critics, some of whom may be your customers. There is a view that companies that outsource to countries with lower labor costs due to the economic downturn are opportunistic and are profiting from the misfortune of others. This outsourcing is considered unethical, and in this case, making money takes precedence over the well-being of workers. When the term outsourcing is used, it usually quickly follows the term sweatshop, where workers are paid very little and work under difficult and sometimes dangerous conditions. Although these practices still exist, even today, many companies that practice outsourcing are aware of this stigma and strive to assure customers that workers are well paid and working conditions are good.

Other customers may criticize international outsourcing on the grounds that the jobs are not retained in the company’s territory and therefore are a burden on the local economy. It is for this reason that some companies put all their interests in the same country, such as call centers, instilling the confidence that this brings to them. As always, even in small businesses, it’s important to understand your customer base and why it’s coming to you. For example, if it is your reserve price, the problem of outsourcing to low-income countries may not be a problem. If your customers come to you because of your high ethical standards and the support of local companies, cheap outsourcing may lose this habit

Ethical outsourcing

The Code of Ethics in Ethical Outsourcing describes how your business is outsourced. By taking responsibility for workers in poorer regions and countries beyond mere wages, you are supporting the economy, education, and the overall well-being of workers... which is a good thing. When it comes to ethical outsourcing, there is no real definition of what ethics is. It is your customers who ask you to be responsible for your own ethical standards. Many large companies have closed down due to reports of poor worker conditions.

The advantage lies in being able to inform customers of this work and inspire confidence. If you are responsible to your employees, then needless to say, you are also responsible when dealing with customers.

 Why outsourcing in an ethical way

When considering the pros and cons of ethical outsourcing, it is important to determine why you are doing this. Sadly, lofty goals are rarely mixed with business ideals, especially for small businesses. Some larger companies are engaged in charity work, although in most cases it is just a public relations activity. In the authors opinion, the best way to understand is that you want a great job, and you want to do it cheaply.

But you want it to be done fairly so that everyone benefits, including your customers prices, your outsourcing subcontractor’s salaries, and your business profit margins. Its business model is not based on greed or reduction, but a reliable and responsible company that cares about employees and customers.

They are improving peoples opportunities while also enhancing their image as a caring and responsible company. Of course, convincing your customers that this is an unstable route.

On the one hand, he is very humble and rarely talks about it, but for using low-paid workers in poor countries as the foundation of his business empire, making him an evil and ruthless overlord, or, if you are open, he You will be criticized for your belief that you support people from low-income countries who have fewer jobs and training opportunities.

You seem to be a conceited and conceited good doer... But all this is beyond the scope of this article. However, these are just some pitfalls when considering any outsourcing. Let us understand more deeply that outsourcing may not be a panacea that people usually think of as saving time and money. How ethical outsourcing can negatively affect your business Of course, ethical outsourcing can also negatively affect your business. The term ethics is very subjective, just like your client’s own ethics. Although you can see that supporting workers in low-economy countries and supporting their development is a good thing, there is no doubt that some customers will continue to see it as opportunism, no matter how it is disguised. Similarly, your control over subcontractors is not absolute, and your goals will be different.

You will want to improve your business model to increase efficiency, such as reducing working hours and getting the same results, and your outsourcing subcontractors want as much working time as possible, you will go to them and recommend reducing these employment hours Basically, your salary will not drop very well. Another aspect to consider is the relative reputation of your own company and the company you hired the job. For example, if they find that they have poor working standards for their employees, it will have a negative impact on their own business.

They are not employees, and you do not have the same level of responsibility for their well-being and the right to correct problems when they arise.

You should also consider the impact of providing your data or intellectual property to another company.

Laws around the world are not all the same, and even if there is a law that protects your intellectual property, it is not always complied with. With enough information, it is possible for an outsourcing company to reverse-engineer your process and conduct business on its own. Outsourcing is also a problem.

Once you realize the potential of handing over work to an external company that you cannot directly control, outsourcing everything and acting only as a coordinator seems to be an obvious step. The danger is that your purpose may become redundant, especially if your carefully constructed process card house starts to interact and you realize that you don’t need it at all. For companies that outsource ethically or otherwise, another issue is quality control. Without continuous verification of the products produced by outsourced contractors, it is impossible to ensure that the work is performed to high standards. Of course, this can happen to any contractor, but when the contractor is on the other side of the world and in a different time zone, he must take a certain amount of risk before establishing trust in the working relationship.


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