Utilitarianism, Kantianism And Social Contact Theory

This newspaper analyses each key reasons for outsourcing through three ethical theories, such as Utilitarianism theory, Kantianism Theory and Public contact theory.

Outsourcing bargain the security and quality of products.

When a corporation gets outsourced, the folks who are culturally removed from the mother or father company have to transfer the knowledge to the new employees those who come to the plank. Can these services meet quality objectives? In some cases it generally does not satisfy the entire requirements. There could be a communication difference when you transfer your knowledge to the third party. Could be you have insufficient interest to teach the third get together people, but you are pressured to do it. In this case honesty in communication and doing the right obligations make the attention of ethical issues. This is against the Freedom of Speech. A couple of language and cultural barriers while interacting with the abroad workers. The abroad workers talk to Americans in destroyed and incomprehensible English. Because of this, the firms have to compromise on the quality of the product. Indirectly if we see, nowadays because of job outsourcing in a peek, overseas workers are good in communication and very talented. They can easily understand the problem and come up with good ideas, provide the quality and security of the merchandise. Customers get benefited from the outcome of the result. For Utilitarian research outsourcing is good. Company outsources scheduled to highly skilled, informed labor with cheaper price in international countries. Sometimes international countries use very cheap quality raw materials and less manual work to complete the project because of their profit. For an example, China use lead color in toys. From your final results the users as well as the company suffer. This isn't good.

Utilitarianism Theory Analysis

The services or tasks that happen to be outsourcing will be the Intellectual Property of the business. The company has the right to protect their intellectual property. For that need company has to enforce proper planning strategy on what services should be outsourced and what services shouldn't. If there will be lack of proper planning, then may be chances of Identity Fraud and the company undergoes loses. In other way, if there is a proper planning, then company can concentrate on center services and outsource the ancillary duties and by the end provides a good quality product to the users. All the users and company get benefited, nobody get damage.

In conclusion by providing proper training to the substitute employees, good communication to new employees, proper planning strategy of the business before outsourcing, then users get benefited and satisfied by the end with the quality and security product. So relating to Utilitarianism, outsourcing is good no need to compromise the product quality and security of the product.

Kantian Theory Evaluation

If there may be drop in quality and safety of the outsourced product, the city and the users are going to suffer from. Company use overseas staff at cheaper rate to perform the goal, the grade of the merchandise drops. Overseas staff use as a means to a finish for the business benefit. Most of the previous personnel who used to work before are getting laid off. Company cured them with disrespect. So outsourcing is bad.

Social Agreement Theory Research

Company gets the right to give a good quality product to the community. When there is drop in quality, the logical begins are not get benefited to the utmost level. So matching to social agreement theory, outsourcing is bad, as it drops the product quality.

It impacts the global economy.

People in the developed countries like US and UK tend to blame outsourcing because of their job deficits, low paying jobs. But just offshore outsourcing is an inevitable sensation that has many practical benefits to the globe economy. Global outsourcing assists with creating newer international market segments, helps bring about global citizenship, helps identify global ability and in a more substantial sense helps in the introduction of economics of all countries getting involved in it. People are more worried about job loses alternatively than noticing new jobs are getting created. Outsourcing can be an development that is revolutionizing our societies and laying the building blocks for a much better world current economic climate.

Utilitarianism Theory Evaluation

Companies exploit the cheap labor of offshore countries and lessen man power costs, reduce operational costs and capital expenses. The overseas personnel don't get biggest happiness but at the end the global market rises, all the people are getting benefited. So outsourcing is good.

Kantian Theory Analysis

Though outsourcing increases global economy, the firms exploit the employees and infrastructure facilities available in the 3rd world countries and use as a means to a finish. So outsourcing is bad.

Social Agreement Theory Analysis

All the rational begins are receiving benefited through outsourcing as it increases the global overall economy. So for the planet benefits, outsourcing is good.

An workplace outsources some work to flee taxes and polices.

By outsourcing certain tasks, the companies can save money based on fees they pay in the just offshore countries. Developed countries like America and Europe have more corporate and business tax rate than other countries. The U. S. tax code allows American based mostly companies to obtain the tax exemptions with the percentage of tax already paid to foreign countries, which is very less compared to U. S. Some companies even move some duties to the tiny offshore island, such as Caymans, where they can create free of tax account and steer clear of paying taxes. The company uses the materials and sources of the international country and this helps in building small local companies and international country make more tax profits from those small local companies. In overall the outsourced company conclude with paying less taxes or sometimes get the taxes exemption to the international country, since it increases the overall economy of the overseas country and create more jobs in that country. The U. S. companies only give taxes predicated on their operation accounts income in U. S.

Utilitarianism Theory Analysis

According to Utilitarian point of view, the companies move certain responsibilities to the just offshore countries for duty benefits. They help other overseas countries to increase and create careers there and also give duty to the countries based on the earnings in those countries. The duty rate at overseas country is suprisingly low compared to the parent or guardian country. The mother or father country gets less tax revenue while the foreign countries and the company both are getting benefited with this. So outsourcing is good.

Kantian Theory Analysis

The companies create more careers in the abroad for tax bonuses. They do not invest profit their country and don't create jobs for his or her society. Matching to Kant, this is morally incorrect, the firms has some duties for the united states. They cheat to the united states and present less tax predicated on income in the mother or father country not the revenue through abroad.

Social Contract Theory Analysis

The outsourced companies give lower overseas taxes rate to the overseas countries when compared with U. S. and deduct those foreign taxes on the American tax come back. The outsourced company creates jobs overseas and give tax predicated on profit acquired in the international, because of this the international countries get financially benefited. Like a moral guideline, if all the U. S. established companies move their business overseas for their taxes benefit, then market of the U. S. will drop, it isn't right. So outsourcing is not good.

Honesty in communications is at the ethical core of trustworthiness.

Another problem in outsourcing is transfer of knowledge. How seriously the parent employees who are culturally taken off the business, will transfer the data to the international employees. The offshore countries possess the responsibilities to provide back the product quality and protection product to the business; how much honesty will are present in this technique, is a question? Honest in romance between your developed country and the overseas country is an integral constraint for better and successful business.

Utilitarianism Theory Evaluation

According to Utilitarianism Theory, if the work is done with honest, it will give satisfaction at the end. When two countries are working as well as handshaking, one should have trust with another plus they should do work with honesty. If that criterion meets, then both the countries get benefited. Outsourcing is good.

Kantian Theory Evaluation

An outsourced company gets profit with the aid of other foreign country; simultaneously international country also gets earnings with the outsourced work. Both must do work with honest and trust. If one country use other as a way to an end for its gain, then it is incorrect. If there is honesty, outsourcing is good.

Social Contract Theory Research

As a moral guideline, honesty in communication required for better business and makes a better expression. So in outsourcing, honesty is a main factor.

Skilled and talent pros benefit other nation.

Developed country like U. S. moves some responsibilities to foreign countries to utilize skilled and gifted personnel at lower rates compared to U. S. talented staff that will lead to an increase in output and save costs in a major way. Large numbers of engineers is graduating each year from India and China in comparison to U. S. Because of this there is an oversupply of gifted workers from abroad. But these foreign countries sometimes cannot produce quality and challenging careers for the kids at a good rate, where they get their satisfaction careers from other developed country at a feasible rate. They leave their own countries because they're not utilized by the economies of the expanding countries and help other nation. Outsourcing offers opportunities for gifted individuals to stay at own country and work for the other country.

Utilitarianism Theory Research

According to Utilitarianism Theory, if accomplished and skilled workers stay at own country and improve other country, the employees get satisfaction with their job as well as the market of their own country gets better. At the end, even though staff drain brain for other region, own region also get benefited. Skilled personnel improve other nation is good.

Kantian Theory Examination

Developed countries give job to the skill and skill workers overseas because of their benefit instead of own talent employees. Relating to Kant, this is wrong because developed countries workers use as a way to a finish.

Social Deal Theory Evaluation

Talent and skill employees get opportunities and build their job and company also gets benefited. It does not matter where these employees drain brain, but global overall economy increases.

Restricted usage of secured data for keeping the privateness and confidentiality.

Outsourced company should focus on core business and need professional attention while moving some operations to the third party company. The key concern of outsourcing is to keep the confidentiality, integrity, security and privacy of the business business. It really is wise if outsourcing spouse doesn't have adequate information security procedures. Like a practice of moral rules and privateness plans of the organizations like non-disclosure of trade secrets and non-disclosure deals with staff, third party service providers and guests should sign the disclaimer deal. So the outsourcer feels safe to do the business enterprise with a partner who is miles away. Everyone has to protect his intellectual property. Personal privacy is a prudential right. From the idea of view of rule utilitarianism, social agreement theory and Kantianism, it's important to keep up some privacy and confidentiality information to the 3rd party company.

It escalates the productivity of the assistance.

By employing more amounts of skilled and talented manpower at less expensive, company raise up their efficiency. Companies produce better product at low price which increases the demand of the product and also increases revenue of consumers. In order to produce more products, personnel must be appointed, that results in more job creations. Companies are powered by an night and day, "24/7" production cycle, provides customer support a day; which further adding efficiency. By outsourcing it's possible for assignments to be shuttled between multiple sites, allowing around the clock and get the tasks done with time. For a good example, a team in Palo Alto spends its day to find insects in a bit of software, then side the bug reviews to Bangalore team of India that spends its day mending the pests. Outsource results into better customer satisfaction and increased profitability. If we see in other way, infrastructure in less developed countries can make business more difficult, which hampers the efficiency.

Utilitarianism Theory Analysis

According to Utilitarianism, customer get good product in less price, which increases total enjoyment of the customer. In addition, it creates new careers. So outsourcing increases the productivity.

Kantian Theory Research

By employing skilled manpower at less expensive, company boost up output which is morally wrong relating to Kantianism theory, because company uses skilled manpower as methods to an end.

Social Contract Theory Research

Outsourcing process enhances productivity of the business and also provides client satisfaction. According to public contact theory outsourcing is good.

Conditions when the outsourced get outsourced:

Outsourcing Company outsources careers to just offshore countries to get the merchandise within the much reduced cost. To get maximum revenue benefit, offshore countries outsource some of their job areas to third just offshore country to reduce their operating costs. The outsourced jobs in the offshore countries get outsourced to another just offshore country because of minimizing the price of infra composition, cost of raw materials, and cost of labor. A lot of the times offshore country keeps the core features of the outsourced careers and outsources their non-core careers to third offshore country for the utilization of available skilled labors. Also the just offshore country outsources their jobs to get the power out of lower commercial tax rate of 3rd offshore country. Sometimes Supply of demands can be a factor to receive the jobs outsourced from one offshore country to some other offshore country. For instance, developed country like America outsources mostly IT jobs to India to get a much better quality product at less price. India outsources certain tasks like software tests, software documentation of those IT services to other offshore country like Philippines and other southern Parts of asia to receive the jobs complete within very low labor cost. Sometimes Indian firms outsource job to producing nations to meet the need for personnel who speak the varieties of languages that global clients demand.

Utilitarianism Theory Analysis

The business of the business spread internationally. Three countries get benefited and also skilled and talented personnel get good job. Sometimes own country skilled workers do not get job, this is a poor consequences. Taking care of the tasks is difficult as it spread to country to country. The confidential information are less secure, thus giving negative impact. Total benefits is more than total harms. So outsourced get outsourced is a good phenomenon.

Kantian Theory Research

The developed country like America outsource job to expanding country like India for his or her benefit. In the same way India outsources some activity to third developing country like Philippines. Matching Kantian theory, America uses India as a means to an end. India uses Philippines as a way to a finish. This isn't a good idea.

Social Contract Theory Examination

The businesses of the business get distributed about the world. Top quality product comes at the perfect price due to competition among possible providers of the same product. That is beneficial for the population. Poorer countries gain career, creating jobs across the world reduces unrest and leads to more balance. For everyone's mutual gain, outsourced get outsource is good.


Outsourcing has incredible impact on economical growth, national security, balancing between Careers vs. the workforce. These effects are both negative and positive. When the business owners and BPO consultants move jobs overseas, they declare that their activities have a net positive. On the other hand certain group of individuals and the community of outsourced country are adversely affected through outsourcing. It's very difficult to determine who will be the ones affected from outsourcing.

The jobs as well as the capital resource are moved from developed to producing countries. As a result unemployment rate increases in the parent country and generally the skilled skilled labors in their own local land are forced out of jobs. Also people in their own local land are shedding affinity for education because of insufficient skilled jobs originating in their own country. Based on various arguments and conversations from different sources, outsourcing also boosts the global overall economy of the domestic country and creates new careers in the united states. If we consider each key reasons of outsourcing through ethical ideas, some key reasons have significantly more moral value than others. So it is very difficult to choose whether outsourcing is good or bad.


Though outsourcing loses some jobs in developed country, it also creates some new high-tech careers in developed country and also improves global market. I claim that outsourcing is not necessarily unethical, nor is it unavoidable. In the end, international business has opened huge marketplaces for United States products and has provided customers with new and cheaper goods. With improvements in shipping and telecommunications, it is easier now than previously to market products and services throughout the world. If businesses and customers are willing to allow the international market, then we should also allow its outcomes - increased competition.

Company should do proper planning about outsourcing, keep carefully the core efficiency of the outsourced careers and outsources their non-core jobs. So company can give attention to the center function and produce good product. The confidentiality and the privacy of the business get guaranteed.

So from my viewpoint, outsourcing is good.

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