5.3 Discussion: Outsourcing Rebuttal

Many companies hire service employees either by offshoring or onshoring. An onshoring is hiring employees domestically wherein they advantage such as ease of

communicating, since you speak the same language, also easier counterpart risk assessments regarding to say legal dispute resolutions since the counter parties are

local. Another benefit is political aspects where onshoring can help the local

communities by providing jobs. Offshoring is when the companies hire service employees from abroad, where they can save on cost as the production of materials

outside the country are many times cheaper than the local country. To go offshoring a company gets widen range of option in which sector they may go to hire employees,

also going abroad can help in easier scaling of employees if in case there are not enough workers locally available.

Outsourcing janitorial service to a local company can help in cost saving. When one hires a new staff, they must train the new individual into the system and that costs

money, by outsourcing the service provider already has established the required

training required by the company so when they bring the outsourced person in, they can immediately start working with no extra cost. Another reason for outsourcing would be

that if your staff that quits or becomes suddenly unavailable to multitudes of reason which would otherwise cost a lot of money to hire someone new and manage what

previous staff has last left off on, and training them, the companies janitorial function will

continue as is, as the service provider would have someone exactly what you would require immediately to replace the worker.

One of the ethical frameworks that could apply to my consideration of outsourcing is

pragmatism. With pragmatism we can solve a practical problem via scientific method as

per pragmatists such as John Dewey who used philosophy, science, and politics to solve issues. If we look at the problem where in the company wants to cost benefits in

hiring the janitorial staff via outsourcing, they are approaching the situation without causing ethical distress in hiring and firing certain individuals or losing money and time

over those let go. As mentioned by Susarla & Mukhopadhyay (2019) “the purpose of

outsourcing is to usher in organizational or strategic transformation” (p.930) - Outsourcing service providers will take care of the exact required needs of the company

and deal with staff replacement in case of someone being let go. This would be the most practical and strategic way by outsourcing the janitorial staff.

The Fiduciary duties and social responsibility as play here is that the company this

working with the owners needs and consent to cut down on operational cost by

suggesting the way of outsourcing. It will help the company maintain the regular functions as is by outsourcing and without the ethical dilemmas in dealing with hiring

and firing of individuals due to cost cutting.

References

Susarla, A., & Mukhopadhyay, T. (2019). Can Outsourcing of Information Technology Foster Innovations in Client Organizations? An Empirical Analysis. ​MIS Quarterly​, ​43​(3),

929-A5. https://doi.org/10.25300/MISQ/2019/13535