Concerns over Outsourcing
1) Confidentiality: Outsourcing necessitates the exchange of a great deal of critical knowledge and information. It can harm the interest of the party that outsources its processes, and even has a risk of competitors getting information about the company’s policies, deals, technology, etc.
2) Sweat shopping: The countries which outsource their work seek to get maximum benefit from the low cost manpower of host countries. Moreover the work outsourced requires ‘doing skills’ instead of ‘thinking skills’, which does not build competency and capability of the outsourcing partner.
3) Ethical Concerns: In order to cut the cost, company has to outsource the work or get the job done from other countries where the work is done in an unethical way. For example, In some of the developing countries, weak laws prevail for child labour and women.
4) Resentment in the Home Countries: Because of outsourcing, employment opportunities are shifted to other countries indirectly. Resentment is caused in the home countries amongst the people, especially when home country is suffering from the problem of unemployment.