¶ … outsourcing from an employee and corporate perspective in an attempt to gain insight into the pros and cons of the outsourcing issue. The researcher proposes that outsourcing is morally and ethically an objectionable practice, that results in little benefit to the company and much harm to the employees it affects. A formal review of the literature available with regard to outsourcing is analyzed, and the case against outsourcing is made. The researcher shows how outsourcing impacts workers in a negative manner, goes against the moral and ethical standards inherent in business and proves that outsourcing will ultimately result in dissatisfaction for corporations in the long-term. Introduction

From a moral and ethical standpoint, outsourcing is wrong and has negative consequences on both employees and the productivity and efficiency of corporations in the long-term. From a practical standpoint, corporations that rush to outsource job functions realize few returns on their investment and few profit savings in the long-term. The rush to outsource has left companies with little value and no tangible increases in productivity or delivery.

Effects of Outsourcing

Among the people most affected by outsourcing in recent years are white collar employees, whose resumes are now flooding the market as eager job seekers attempt to find positions that will pay them a fraction of what they were paid working in corporate America (Shaw, 2004). Companies seeking to modernize operations and reduce labor costs are more and more turning to outsourcing and the results are compelling; more than "one third of all households have seen a family member lose a job" and more than 40% of people have reported knowing someone that has recently been laid off do to outsourcing (Shaw, 2004: 137).

Critics suggest that many companies are downsizing without giving thought of whom they are downsizing, suggesting...

Case in point is Delta Airlines that eliminated more than 10,000 positions and its record of on-time performance "fell to the bottom of the list for a major airline" (Shaw, 2004).
From a statistical standpoint studies conducted by the American Management Association show that of the corporations that have actually downsized, "fewer than half the firms have succeeded in raising profits" and an even smaller portion have bolstered productivity (Shaw, 2004: 137).

Doig, Ritter, Speckhals & Woolson (2001) suggest that too many companies have 'rushed' to jump on the outsourcing bandwagon, and as a result have realized that outsourcing in actuality delivered much less value than originally promised. They point out that outsourcing rose 18% alone between 1999 and 2000, yet companies have yet to realize a larger share of profits as a result (Doig, et. al, 2001). In addition more than one fifth of executives that have outsourced key positions have admitted they are "Dissatisfied" with the results of their outsourcing campaigned whereas another fifth remain neutral, and a study conducted by Dun & Bradstreet shows that up to 25% of outsourcing relationships fail within a two-year period, and 50% within ten years (Doig, et. al, 2001:25).

Right/Duties/Moral Obligations of Corporations

Younkins (2000) suggests that the "concept of social responsibility" can be directly related to "actions and pronouncements taken by business leaders in response to strategic business objectives." Moral and ethical standards dictate that corporations should be considered 'servants of society' and created via the permission of the state, which in essence "owes itself to society (Youknins, 2000). Thus corporations have an obligation to act in…