Outsourcing At Any Cost Do Corporations Ever Have A Moral Obligation Not To Outsource Case Study Samples

Outsourcing is one of the business tools that enable companies to maximize on their profits by minimizing the level of costs incurred in running a business while maintaining or improving on the quality of goods and services produced by the company. Outsourcing also involves searching for resources from different markets in a cost effective manner. In the process of outsourcing, business organization may sometimes relocate to other countries that offer similar resources at lower prices. In addition, other financial benefits such as reduced taxes and lower energy costs may be the reason as to why various companies relocate their operations to other areas. However, although outsourcing enables the company to maximize on its profits companies should evaluate the advantages against the disadvantages of outsourcing before relocating their businesses to other areas of operation or contracting other business organizations.
According to the case study Galaxy.net Company, had a moral obligation to keep its promise to its employees as well as to the entire Green folk community. First is that the employees had agreed on a wage reduction, the company had been promised a tax reduction of five percent and the city had extended the tax abatement for another decade that would enable the company to make huge reductions on the operational costs. In addition, the chief executive officer had promised the community members of the company’s support thus by staying put in Green folk would increase the loyalty of the employees to the company. The company had also been granted tax abatement for the last ten years, thus the company owed the community the favor of guaranteeing employment its community members. Accepting the first offer from the workers and the city would not be too much to ask since the company main objective is to maximize on its profits. In addition, the decision to stay in Green folk would be a favor to the community since the company would have realized major cost reduction by relocating its operations to India.
The entire white-collar professions could be lost to less-developed countries due to outsourcing; this is because most of companies that offer employment to the professions shall relocate to these countries. The relocation of the companies to less-developed countries that offer cheaper labor and lower taxes shall compel the professionals also to relocate to less-developed countries in search for employment. The loss would not be fair to the Americans since most of the skilled labor available in America would be lost to the less-developed countries. In addition, the America’s economy would decline due to the relocation, and this would lower the level of services offered to the citizens by the American government.
Companies have the right to outsource and shift their operations into various countries that offer a better incentive, as well as lower operational costs. Thus, the community would be infringing on the rights of operation freedom of the companies by requesting a state or federal government to ban or discourage outsourcing.
However, the employees should embrace the loss and view it as a wake up move to enable search for employment opportunities in other sectors of employment. In addition, the employees should realize that the world is fast changing due to globalization and hence they cannot rely on only the home companies for employment. Additionally, due to globalization that links various parts of the world together the employees can search for job markets in other job markets via the communication facilities such as the internet. Thus, the employees should prepare themselves for future changes that may occur due to globalization.