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August 30, 2007

Offshoring ethics

In my  job I often face an ethical quandry.  It happened often when I was in China and is also happening here.   One of the services we perform is to assist client companies with outsourcing of various functions.  In many cases, this outsourcing takes the form of offshoring .  The question that bothers me is if it is ethical to assist companies in this type of endeavor? 

I have pretty much reconciled myself to the offshoring of manufacturing.  The business drivers are too strong to deny and the manufacturing labor force in the US seems able to migrate to employment in the services industries.   What I am grappling with more now is the offshoring of more educated positions.  Companies are beginning to offshore their back-office functions such as purchasing, accounting, supply chain, and even legal functions.  US tax return preparation is being done in China as well as US patent applications.  What is going to happen to these professionals who lose their jobs?  Is it possible that they can all survive by opening Yoga studios or massage therapy clinics?  I am not sure.  I don't have enough understanding of the fundamental economics that involved in a transformation of this magnitude.  But it does bother me on a pretty much daily basis.

Would appreciate any thoughts on the matter.

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