Is Outsourcing An Ethical Business Practice?

Just recently, businesses have embraced outsourcing not only as a cost-effective operation tactic but also as a strategic business decision. Put simply; outsourcing is the act of hiring third parties or external firms to perform contracted work. Nowadays, companies outsource manufacturing tasks as well as service-related ones.

Outsourcing is a smart financial move for businesses trying to cut back on expenses. But this practice has been faced with a lot of criticism, the most common of which is a concern for its ethics. So, is outsourcing an ethical technique for businesses? This article proves that outsourcing is ethical, but only when companies adhere to the right practices.

The Key to Long-Term Success

Throughout history, the primary tenet applied in industries is that people purchase products from those companies that they like. Ideally, every consumer prefers certain brands to others. These individuals have specific reasons for remaining loyal to these brands. On this note, a company should only outsource tasks, if this practice does not impact negatively on your brand, employees, and clients.

Culture Should Not Divide

The cultural differences between the Western and Asian countries are massive. Often, people cite these differences as a reason for the problems that arise in outsourcing projects. For instance, you may have a poor customer service experience because the caller’s language was somewhat incomprehensible, given their cultural background. But is this reason enough for portraying outsourcing as the evil it is wrought out to be?

From my viewpoint, such outsourcing issues can be bridged by merely understanding cultural sensitivities. It should be done early before the outsourcing project kicks off. Doing so helps to avert future problems. Besides, globalization has enabled people from different parts of the world to learn the Western and another custom

Get Accustomed to Breaking down Tasks

It is sometimes challenging to contact your outsourcing service provider; you may not even be in the same time zones. With the difference in geographic location, work settings, and skill sets, it is crucial that you be careful when hiring your outsourcing service provider. Mostly, you should go about this hiring process as if you were recruiting a new employee for your company. This way, you can avoid disputes in your outsourcing venture. Also, you should break down big projects into mini-tasks. Start by assigning these small tasks to the third party. If they perform well, you can entrust them with more significant projects.

Compensations and Feedback

Under no circumstances should you outsource work, which you do not intend to make payments for? The best way to guarantee that the project is running smoothly is to ask for and give feedback multiple times.


Outsourcing is no new concept in the business world. This practice has been in existence since the 1970s. In the past decade, outsourcing has gained a lot of momentum and negative attention in the same weight. How ethical your outsourcing practice is, will depend on the kind of relationship that you maintain with the other company and clients. If none of the parties involved in this outsourcing venture feel exploited, then you need not worry about this practice reflecting negatively on your company’s image.