Utilitarianism Theory Kantianism Theory And Social Contact Theory Essay

This paper analyses each cardinal grounds for outsourcing through three ethical theories, such as Utilitarianism theory, Kantianism Theory and Social contact theory.

Outsourcing via media the safety and quality of merchandises.

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When a company gets outsourced, the people who are culturally removed from the parent company have to reassign the cognition to the new employees those who come to the board. Can these services meet choice outlooks? In some instances it does non fulfill the full demands. There may be a communicating spread when you transfer your cognition to the 3rd party. May be you have lack of involvement to develop the 3rd party people, but you are forced to make it. In this instance honestness in communicating and making the right responsibilities make the attending of ethical issues. This is against the Freedom of Speech. There are linguistic communication and cultural barriers while pass oning with the abroad workers. The abroad workers communicate with Americans in broken and inexplicable English.

As a consequence, the companies have to compromise on the quality of the merchandise. Indirectly if we see, now yearss because of occupation outsourcing in a peep, abroad workers are good in communicating and really talented. They can easy understand the state of affairs and come up with good thoughts, provide the quality and safety of the merchandise. End users get benefited from the result of the consequence. For Utilitarian analysis outsourcing is good. Company outsources due to extremely skilled, educated labour with inexpensive monetary value in foreign states. Sometimes foreign states use really inexpensive quality natural stuff and less manual attempt to complete the undertaking for their net income. For an illustration, China use lead pigment in playthings. From the results the users every bit good as the company endure.This is non good.

Utilitarianism Theory Analysis:

The services or undertakings which are outsourcing are the Intellectual Property of the company. The company has the right to protect their rational belongings. For that demand company has to implement proper be aftering scheme on what services should be outsourced and what services should non. If there will be deficiency of proper planning, so may be opportunities of Identity Theft and the company goes through loses. In opposite manner, if there is a proper planning, so company can concentrate on nucleus services and outsource the accessory responsibilities and at the terminal provides a good quality merchandise to the users. All the users and company get benefited, no one get injury.

In decision by supplying proper preparation to the replacing employees, good communicating to new employees, proper be aftering scheme of the company before outsourcing, so users get benefited and satisfied at the terminal with the quality and safety merchandise. So harmonizing to Utilitarianism, outsourcing is good and no demand to compromise the quality and safety of the merchandise.

Kantian Theory Analysis:

If there is bead in quality and safety of the outsourced merchandise, the community and the users are traveling to endure. Company use abroad workers at cheaper rate to carry through the end, the quality of the merchandise beads. Abroad workers use as a agency to an terminal for the company benefit. Most of the old workers who used to work earlier are acquiring laid off. Company treated them with discourtesy. So outsourcing is non good.

Social Contract Theory Analysis:

Company has the right to give a good quality merchandise to the community. If there is bead in quality, the rational Begins are non acquire benefited to the maximal degree. So harmonizing to societal contract theory, outsourcing is non good, as it drops the quality.

It affects the planetary economic system.

Peoples in the developed states like US and UK tend to fault outsourcing for their occupation losingss, low paying occupations. But offshore outsourcing is an inevitable phenomenon that has many feasible benefits to the universe economic system. Global outsourcing helps in making newer international markets, promotes planetary citizenship, helps acknowledge planetary endowment and in a larger sense helps in the development of economic sciences of all the states taking portion in it. Peoples are more disquieted about occupation loses instead than recognizing new occupations are acquiring created. Outsourcing is an development that is revolutionising our societies and puting the foundation for a better universe economic system.

Utilitarianism Theory Analysis:

Companies exploit the inexpensive labour of seaward states and cut down on adult male power costs, cut down operational costs and capital outgo. The abroad workers do n’t acquire greatest felicity but at the terminal the planetary economic system rises, all the people are acquiring benefited. So outsourcing is good.

Kantian Theory Analysis:

Though outsourcing additions planetary economic system, the companies exploit the workers and substructure installations available in the 3rd universe states and usage as a agency to an terminal. So outsourcing is non good.

Social Contract Theory Analysis:

All the rational Begins are acquiring benefited through outsourcing as it increases the planetary economic system. So for the universe benefits, outsourcing is good.

An employer outsources some work to get away revenue enhancements and ordinances.

By outsourcing certain undertakings, the companies can salvage money based on revenue enhancements they pay in the offshore states. Developed states like America and Europe have more corporate revenue enhancement rate than other states. The U.S. revenue enhancement codification allows American based companies to acquire the revenue enhancement freedoms for that per centum of revenue enhancement already paid to foreign states, which is really less compared to U.S. Some companies even move some undertakings to the little offshore island, such as Caymans, where they can make revenue enhancement free history and avoid paying revenue enhancements.

The company uses the stuffs and resources of the foreign state and that helps in constructing little local companies and foreign state bring forth more revenue enhancement grosss from those little local companies. In overall the outsourced company stop up with paying less revenue enhancement or sometimes acquire the revenue enhancement freedom to the foreign state, because it increases the economic system of the foreign state and make more occupations in that state. The U.S. companies merely give revenue enhancement based on their operation account income in U.S.

Utilitarianism Theory Analysis:

Harmonizing to Utilitarian point of position, the companies move certain undertakings to the offshore states for revenue enhancement benefits. They help other foreign states to turn and make occupations at that place and besides give revenue enhancement to the states based on the net income in those states. The revenue enhancement rate at foreign state is really low compared to the parent state. The parent state gets less revenue enhancement gross where as the foreign states and the company both are acquiring benefited with this. So outsourcing is good.

Kantian Theory Analysis:

The companies create more occupations in the abroad for revenue enhancement inducements. They do non put money in their state and do non make occupations for their society. Harmonizing to Kant, this is morally incorrect, the companies has some duties for the state. They cheat to the state and give less revenue enhancement based on net income in the parent state non the net income through abroad.

Social Contract Theory Analysis:

The outsourced companies give lower foreign revenue enhancement rate to the foreign states as compared to U.S. and subtract those foreign revenue enhancements on their American revenue enhancement return. The outsourced company creates occupations overseas and give revenue enhancement based on net income earned in the abroad, as a consequence the abroad states get financially benefited. As a moral regulation, if all the U.S. based companies move their concern overseas for their revenue enhancement benefit, so economic system of the U.S. will drop, it is non right. So outsourcing is non good.

Honesty in communications is at the ethical nucleus of trustiness.
Another job in outsourcing is transportation of cognition. How candidly the parent employees who are culturally removed from the company, will reassign the cognition to the foreign employees. The offshore states have the duties to give back the quality and safety merchandise to the company ; how much honestness will be in this procedure, is a inquiry? Honest in relationship between the developed state and the foreign state is a cardinal restraint for better and successful concern.

Utilitarianism Theory Analysis:

Harmonizing to Utilitarianism Theory, if a work is done with honest, it will give satisfaction at the terminal. When two states are working together with handshake, one should hold trust with another and they should make work with honestness. If that standard meets, so both the states get benefited. Outsourcing is good.

Kantian Theory Analysis:

An outsourced company gets net income with the aid of other foreign state ; at the same time foreign state besides gets net income with the outsourced work. Both should make work with honest and trust. If one state usage other as a agency to an terminal for its benefit, so it is incorrect. If there is honesty, outsourcing is good.

Social Contract Theory Analysis:

As a moral regulation, honestness in communicating required for better concern and makes a better word. So in outsourcing, honestness is a cardinal factor.

Skilled and talent professionals work for other state.

Developed state like U.S. moves some undertakings to foreign states to use skilled and gifted workers at lower rates compared to U.S. gifted workers that will take to an addition in productiveness and salvage costs in a major manner. Large figure of applied scientists is graduating every twelvemonth from India and China compared to U.S. As a consequence there is an glut of gifted workers from abroad. But these foreign states sometimes can non bring forth quality and disputing occupations for them at a good rate, where they get their satisfaction occupations from other developed state at a executable rate. They leave their ain states because they are non absorbed by the economic systems of these developing states and work for other state. Outsourcing offers chances for gifted persons to remain at ain state and work for the other state.

Utilitarianism Theory Analysis:

Harmonizing to Utilitarianism Theory, if talented and skilled workers stay at ain state and work for other state, the workers get satisfaction with their occupation every bit good as the economic system of their ain state gets better. At the terminal, even though workers drain encephalon for other state, ain state besides acquire benefited. Skilled workers work for other state is good.

Kantian Theory Analysis:

Developed states give occupation to the endowment and skill workers overseas for their benefit in topographic point of ain endowment workers. Harmonizing to Kant, this is incorrect because developed states workers use as a agency to an terminal.

Social Contract Theory Analysis:

Endowment and accomplishment workers get chances and construct their calling and company besides gets benefited. It does non count where these workers drain encephalon, but planetary economic system additions.

Restricted entree to secured informations for keeping the privateness and confidentiality.

Outsourced company should concentrate on nucleus concern and necessitate specialized attending while traveling some operations to the 3rd party company. The nucleus concern of outsourcing is to keep the confidentiality, unity, security and privateness of the company concern. It is wise if outsourcing spouse does non hold equal information security steps. As a pattern of ethical regulations and privateness policies of the organisations like non-disclosure of trade secrets and non-disclosure contracts with staff, 3rd party service suppliers and visitants should subscribe the disclaimer contract. So the outsourcer feels safe to make the concern with a spouse who is stat mis off. Everyone has right to protect his rational belongings. Privacy is a prudential right. From the point of position of regulation utilitarianism, societal contract theory and Kantianism, it is necessary to keep some privateness and confidentiality information to the 3rd party company.

It increases the productiveness of the services.

By using more Numberss of skilled and gifted work force at lower cost, company hike up their productiveness. Companies produce better merchandise at low monetary value which increases the demand of the merchandise and besides increases gross of consumers. In order to bring forth more merchandises, workers must be hired, that consequences in more occupation creative activities. Companies operate on an around the clock, “ 24/7 ” production rhythm, provides client service 24 hours ; which further adding productiveness. By outsourcing it is possible for undertakings to be shuttled between multiple sites, leting around the clock and acquire the undertakings done in clip. For an illustration, a squad in Palo Alto spends its twenty-four hours to happen bugs in a piece of package, so manus the bug studies to Bangalore squad of India that spends its twenty-four hours repairing the bugs. Outsource consequences into better client satisfaction and increased profitableness. If we see in other manner, substructure in less developed states can do concern more hard, which hampers the productiveness.

Utilitarianism Theory Analysis:

Harmonizing to Utilitarianism, client get good merchandise in less monetary value, which enhances entire felicity of the client. It besides creates new occupations. So outsourcing additions the productiveness.

Kantian Theory Analysis:

By using skilled work force at lower cost, company boost up productiveness which is morally incorrect harmonizing to Kantianism theory, because company uses skilled work force as agencies to an terminal.

Social Contract Theory Analysis:

Outsourcing procedure additions productiveness of the company and besides provides client satisfaction. Harmonizing to societal contact theory outsourcing is good.

Conditionss when the outsourced get outsourced:

Outsourcing Company outsources occupations to offshore states to acquire the merchandise within a much reduced cost. To acquire maximal gross benefit, offshore states outsource some of their occupation countries to third offshore state to cut down their operating costs. The outsourced occupations in the offshore states get outsourced to another offshore state because of cut downing the cost of infra construction, cost of natural stuffs, and cost of labour. Most of the times offshore state keeps the nucleus functionality of the outsourced occupations and outsources their non-core occupations to third offshore state for the use of available skilled labours. Besides the seaward state outsources their occupations to acquire the benefit out of lower corporate revenue enhancement rate of 3rd seaward state.

Sometimes Supply of demands can be a factor to acquire the occupations outsourced from one offshore state to another seaward state. For illustration, developed state like America outsources largely IT occupations to India to acquire a better quality merchandise at a lower monetary value. India outsources certain undertakings like package proving, package certification of those IT services to other seaward state like Philippines and other south Asiatic states to acquire the undertakings complete within really low labour cost. Sometimes Indian corporations outsource occupation to developing states to run into the demand for workers who speak the assortments of linguistic communications that planetary clients demand.

Utilitarianism Theory Analysis:

The concern of the company spread globally. Three states get benefited and besides skilled and talented workers acquire good occupation. Sometimes ain state skilled workers do non acquire occupation, this is a negative effects. Pull offing the undertakings is hard as it spread to state to state. The confidential information are less unafraid, this gives negative impact. Entire benefits is more than entire injuries. So outsourced get outsourced is a good phenomenon.

Kantian Theory Analysis:

The developed state like America outsource occupation to developing state like India for their benefit. Similarly India outsources some undertaking to 3rd developing state like Philippines. Harmonizing Kantian theory, America uses India as a agency to an terminal. India uses Philippines as a agency to an terminal. This is non a good thought.

Social Contract Theory Analysis:

The concerns of the company acquire distributed around the universe. Higher quality merchandise is sold at the best possible monetary value due to competition among possible suppliers of the same merchandise. This is good for the society. Poorer states gain employment, making occupations around the universe reduces unrest and leads to more stableness. For everyone ‘s common benefit, outsourced acquire outsource is good.


Outsourcing has enormous impact on economic growing, national security, equilibrating between Jobs vs. the work force. These impacts are both positive and negative. When the concern proprietors and BPO advisers move occupations overseas, they claim that their actions have a clear net positive. In contrast certain group of people and the community of outsourced state are adversely affected through outsourcing. It is really hard to find who are the 1s affected from outsourcing.

The occupations every bit good as the capital resource are transferred from developed to developing states. As a consequence unemployment rate additions in the parent state and in most instances the qualified skilled labours in their ain domestic land are forced out of occupations. Besides people in their ain domestic land are losing involvement in instruction because of deficiency of skilled occupations arising in their ain state. Based on assorted statements and treatments from different beginnings, outsourcing besides enhances the planetary economic system of the domestic state and creates new occupations in the state. If we consider each key grounds of outsourcing through ethical theories, some cardinal grounds have more moral value than the others. So it is really difficult to make up one’s mind whether outsourcing is good or bad.


Though outsourcing loses some occupations in developed state, it besides creates some new hi-tech occupations in developed state and besides increases planetary economic system. I argue that outsourcing is non needfully unethical, nor is it ineluctable. After all, international concern has opened immense markets for United States merchandises and has provided clients with new and cheaper goods. With promotions in transportation and telecommunications, it is easier now than of all time before to sell merchandises and services across the Earth. If concerns and clients are willing to accept the international market, so we must besides accept its effects – increased competition.

Company should make proper be aftering about outsourcing, maintain the nucleus functionality of the outsourced occupations and outsources their non-core occupations. So company can concentrate on the nucleus map and bring forth good merchandise. The confidentiality and the privateness of the company acquire secured.

So from my point of position, outsourcing is good.


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