History of Offshore Outsourcing
The loss of American jobs to foreign markets is
nothing new. For decades,
Americans have been losing jobs in manufacturing, textiles, and almost any field that involves
factory work. Offshore outsourcing is just recently becoming prevalent in the news because white-collar jobs that
used to be considered secure are being lost to overseas contractors. Two
for the sudden outburst of outsourcing in the IT industry are the Y2K bug and the dot com boom. Both events
created a great need for developers that could perform mundane repeated tasks at a low cost. Since America
couldn't provide enough workers at the time, companies looked elsewhere, namely
Is Offshore Outsourcing Ethical?
Many people consider offshore outsourcing to be immoral and unethical on the part of the company.
However, morality and ethics are
difficult to judge
when it comes to market outcomes. Offshore outsourcing has numerous consequences that can be
considered both ethical and unethical, depending on the
interpretation of the individual or company.
While many unemployed IT professionals may be
that outsourcing is improving the American economy.
A major conflict for outsourcing comes not only from the replaced employees, but customers as well.
As the amount of data that American companies
trust to foreign countries continues to grow, more
risks and conflicting interests come in to question.
What Actions are Being Taken?
On the consumer side, many activist groups are forming
to speak out against offshore outsourcing with the goal of preventing laws from forming that would encourage outsourcing, and
enacting new laws to limit it. The number of outsourcing
continues to grow, but
the amount of functions that they outsource rises as well. We can assume that this trend will continue indefinitely, as
long as companies can continue to save money with offshore outsourcing.