Yes, it is ethically defensible to outsource the production to the developing where the cost of labor is low. This is because people in the developed countries are not willing to work at the lower wages. The people in developing countries have the required skills, but they do not have the required resources available in order to start their work, so they become willing to provide labor at lower wages (Harrison & Learner, 1997). In this way, the companies get benefitted with the cheap labor and the people in developing countries can earn in order to support their families. Further, it is claimed that outsourcing of jobs to the developing countries involves dismissal of the employees in the employees in organization’s home country, but from the perspective of economists, it does not make any difference if the work is outsourced to a person or to a company located either in the same county or town or in a different one.
Outsourcing helps those workers in the developing countries that possess the skills, but are unable to find the job and are suffering at the hands of poverty. When the companies outsource their production for taking advantage of the lower cost labor, then the consumers present in the country that is outsourcing also get the product at lower price. This also helps in the promotion of mutual beneficial relationship in the perspective of outsourcing. It helps the organization to achieve win- win situation and win-win culture by promoting cooperation between the labor of other countries and employees of different countries (Saxena & Bhradwaj, 2007). Both become aware of the cultures and traditions prevailing in the countries, and respectful relationship is created. Furthermore, the companies want to satisfy their stakeholders and for that they take the advantage of cheap labor of developing countries, which as a whole is beneficial for the workers, company and the stakeholders.
References
Harrison, Ann. & Learner, Edward. (1997). Labor Market in Developing Countries: An Agenda for Research. Journal of Labor Economics, 15(3), 1-19
Saxena, KBC., & Bharadwaj, Sangeeta Shah. (2007). Business Process Outsourcing for Strategic Advantage. Excel Books India, New Delhi
