An event happening in a world today is IT offshoring where an organization can save a lot by sending human resources to an offshore country. It enables the organization to compete in the global marketplace by reducing costs and making funds available for innovation, product quality improvements, and expanding operations. It also contributes to the developing nations by generating employment opportunities, proper skill development, and generating revenue for the countries. Like India or the Philippines, the growth of the IT segment complemented by the expansion of customer support has resulted in the brightening economic horizons of countries.
Nonetheless, this raises a lot of ethical and economic issues. On the one hand, offshoring means that there would be job displacements, stagnating wages, and even uncertainty about the economy for those employees and communities left behind. In places where alternatives for employment are few, this is difficult. On top of this, the offshore locations are seldom at par with the world on working conditions and compensation issues, leading to questions regarding labor rights and fairness.
Of course, the solution for the balance of advantages and disadvantages remains in careful decisions made by the companies using IT offshoring. Thus, the organization should not only adopt competitive compensation and benefits, but also consider investments in upskilling of domestic labor and upscale opportunities within the organization itself, while treating the offshore employees fairly and offering them comparable pay. Supporting displaced workers against the practice might also prompt businesses to adopt ethical offshoring practices. Offshoring will cost the business, but it will save so much money. It can also help develop economies, but not at the expense of stakeholders welfare.