Is Outsourcing Ethical? 

Is Outsourcing Ethical

In today’s globalized market, businesses often get faced with the challenge and threat of intense competition. However, with the rise of outsourcing, many companies have changed the way they do business as many have started to follow the trend of outsourcing in order to stay a step ahead in the competitive market. Still, many question the outsourcing integrity. So, is outsourcing ethical, and can it have a positive impact on the overall economy?

As a business solution company helping many businesses with questions and dilemmas of this nature, we packed this article with all the relevant information to understand what could possibly make ethical outsourcing.

Understanding Ethical Issues

Many companies decide to outsource to third-party vendors because that way, the company can focus on the business’s core competencies, reduce operational costs, and allow companies to share the load with the outsourcing team. However, from the moment outsourcing became a constant practice, it has become a controversial topic, mostly because of the economic effect.

The reason why outsourcing attracts that much attention is because many businesses still believe that outsourcing as a practice poses a concern for exploiting human resources. The core concerns of outsourcing ethics are minimal wages, slave labor, and unhealthy work conditions.

Moreover, companies are concerned with privacy and security systems BPO companies have. Many companies that decide to outsource are in healthcare, which, under HIPAA, they swear on protecting sensitive patient information from being disclosed. But what happens when they decide to outsource their information to a third-party company and the information gets breached?

Although there has been a loud uproar over the upswing of outsourcing, many argue that the benefits of outsourcing surpass the disadvantages and the negative approach it had in the past. So, we have to say that as long as the outsourcing services promote sustainability and encourage environmentally friendly practices, outsourcing is an ethical practice.

Importance in the Global Market

By fostering and hiring an outsourcing company that aligns with the same values and ethical conduct, a company ensures and builds trust among long-term partnerships. Moreover, you build a positive reputation in the interconnected world of business, which helps you gain the trust of stakeholders, customers, and the respect of the people who work in the company. 

As you operate on a global scale, you get to meet and interact with diverse cultures and societies in different environments. Upholding positive ethical conduct is not only necessary for the further growth of your company but also a strategic necessity for sustained success.

Understanding Ethical Issues

Benefits of Ethical Outsourcing

As you’ve seen by now, ethical outsourcing not only brings cost-savings and increased efficiency, but it contributes to sustainable development and economic growth of the company.

Although many believe that outsourcing exploits human labor, that’s far from the truth. As we know, most companies decide to outsource in low-wage economic countries to reduce costs. Such outsourcing allows companies to cut costs by hiring a team of experts from external providers who deliver high-quality services at a lower price. By cutting expenses for outsourcing, the company invests the money in other core business activities to stay on the competitive edge of the industry. 

Moreover, outsourcing ethically allows new opportunities to employees by giving fair wages (even higher than the average in the country they operate in) and benefits, allowing employees to live comfortably. Not only that, but ethical outsourcing boosts the economy and contributes to sustainable development and economic growth in local communities.

Remember, the key to ethical outsourcing is based on trust and mutual agreement with the partners that choose your company to outsource for them. To build trust in ethical outsourcing, consider:

  • Open communication
  • Clear expectations
  • Seek partners that share the same values

Damage from Unethical Practices

Unethical practices can have serious consequences if not handled properly. Unethical outsourcing often violates laws, regulations, and standards of ethical behavior. By implementing unethical outsourcing, a company creates a negative image of the industry and implements distrust between the company and the outsourcing partner.

That’s why we at CLICKVISION BPO stay in compliance with the regulatory requirements and take privacy to the highest level by implementing the highest standards of data security and protection. Moreover, we practice transparent communication with our partners and clients, which helps us build trust and strengthen long-term partnerships.

Avoiding Unethical Practices

Every company should avoid the following unethical practices:

  • Not providing fair wages
  • Exploiting labor laws
  • Not meeting environmental standards
  • Hiring full-time workers without proper documentation
  • Lack of transparency

Source: freepik.com / Photo Contributor: prostooleh

Conclusion

Outsourcing is a common business model with many companies, especially in healthcare and insurance. However, due to evident scams like not treating foreign employees fairly, not paying their salary on time, or fostering toxic working environments, many reputable businesses wonder about the ethical conduct of outsourcing. So, what can we conclude? Is outsourcing ethical?

Although many argue about the integrity of outsourcing, we have to say that as long as you implement trust and transparency among both parties, treat employees fairly, and allow new opportunities for further growth, outsourcing is an ethical practice.

With a strong background in the marketing industry and healthcare leadership roles, Filip is responsible for CLICKVISIONBPO's sales strategies and onboarding new clients. With a passion for sharing insights gained from his experience, he also shares valuable knowledge through industry related articles.

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