Opinions about ethics in outsourcing
Reader Interactions
How to Make Outsourcing Ethical?
by Francis
(October 06, 2012)
Many people think that Outsourcing is a bad thing, that it is unmoral or unethical. In my opinion, no tool or business strategy is unmoral by itself. It’s how you use it that makes it good or bad.
So how can you make Outsourcing ethical?
The main cause which will make your outsourcing efforts more morally right is that the person that you hire, a freelancer, is happy with his payments. Not only happy because he receives any sort of compensation, but because he receives a compensation that is correct, appropriate for his work and lets him live well.
In my opinion, if an entrepreneur is internet savvy enough to hire someone from a country with lower cost of living like India or the Philippines, then it’s due to his smarts that he is paying low hourly rates than e.g. US.
It doesn’t make it unmoral as long as he doesn’t go too low with his payments for Indian freelancers either especially since in European or American countries, the cost of living is higher. It is very much possible to hire someone from a poor country for a wage that is not only affordable but generous.
You’ll benefit from this twice. First, your virtual assistant will stay very faithful to you and to your work. Second, you will do something moral. And if anyone criticizes your outsourcing efforts, then you can always argue with them that you pay them much more than elsewhere.
For those people who still criticize that this is unmoral, I suggest that the reason for the difference of costs of living are more complicated than one person could resolve. Globalization or political issues, their scopes are too big to discuss here, are the reasons behind all of this.
It’s not one entrepreneur who can change this alone. What he can change is how he treats his outsourced helpers. That’s his responsibility.
If you agree or disagree, I would love to hear from you in the comments!
Comments for How to Make Outsourcing Ethical?
Dec 08, 2013 | Disagreeing comment by an anonymous visitor A visitor sent me a very insightful and thought-provoking message. Here is what he wrote: Business and charity are not the same thing. Anyone who takes a $1/hr job, by necessity of their choice, is better off than they would have been without it. If you want to alleviate the poverty that creates these market conditions, donate the appropriate charities. This will address the long-term issues driving low-wage conditions. Paying a wage above market price is neither an effective nor sustainable solution to anything but making the employer feel better about himself. I believe there is much truth in what this visitor wrote. However, I believe doing an assistant good by paying him in a way that he effectively can say: “this pays me more than any local job AND is fun work!” is something good. I never had the motivation to “save the world through outsourcing”. That’s just not realistic and silly. But I do believe that one can do good for the people in your immediate surroundings. including your VAs. |
Jul 17, 2014 | not immoral, not unethical–it’s business-wise I would like to share my two cents. For me, Outsourcing had never that hint of immoral and unethical issue (for me). But, if you pay below the average of your outsourced task, than that would be the time it is unethical. Yes, cost-of-living plays along with it. And if you can get a satisfactory outcome with 1 to 2 dollar an hour, why would you pay for a costly 20 to 30 dollar? I think it’s just business-wise and there’s nothing with immorality or unethical 😀 |
Why are so many people working for so cheap on crowdsourcing?
by Francis
(August 15, 2012)
Recently a visitor asked us the question:
“Why are there so many people working cheaply with crowdsourcing services? Sometimes for as little as a few cents per minutes!”
When you are talking about crowdsourcing experiences, the No.1 service which comes into mind is Mechanical Turk.
Reasons why people are working cheaply on crowdsourcing services
What seems a cheap pay to you may not be cheap pay to someone else in another country. In many Asian countries, seemingly small amounts are considered a good pay compared to the cost of living of these countries.
$3/hour in the Philippines, $2 in India or Pakistan are some of the real life examples of pay rates people in these countries are very comfortable to work with.
When crowdsourcing, do it ethically
You must ask one question before the question if it is OK for people to work for cheap on crowdsourcing services:
“Is that ethical?”
We from ideal-helper.com care for what is happening in the outsourcing world. My personal opinion is that there is enough money for everyone to create a win-win situation.
If you find a business partner who lives in another country and would be very happy to work for you at a certain pay rate and it appears cheap for you, you can try to find a middle ground which will make both sides very happy.
In the end, it doesn’t change the fact that thousands of very different people from all walks of life are working on crowdsourcing services.
Some just are looking for a fun part-time and if it gives them a few additional dollars. This is just all the better and this is also not only limited to people from Asia.
Some people do not think of it as a real job. Some people just approach it as helping each other out for a small amount of money.
All in all, I am sure than there are very different reasons to work on crowdsourcing services like Mechanical Turk, even for very cheap. But not in all cases should this be alarming.
You must look closer at each individual case.
Is there a child working, is someone working inhumane hours for minimal pay…?
Yes? Then you should go and protest as much as you can.
I’ll be right beside you.
For some freelancers, crowdsourcing sites are OK
But for those people who are just doing it for fun as a hobby or as a pass time, however useless this pass-time may appear, it is still their choice.
Here are some real life case studies from people who are actually working on Mechanical Turk that could not be more different.
If you still think that it is wrong that many people are working for so cheap on crowdsourcing, I hope I have differentiated your point of view a little bit with this post.
Still feel free to add a comment by clicking on the link below.
Looking forward to a lively discussion.
Comments for Why are so many people working for so cheap on crowdsourcing?
Mar 10, 2013 | Thanks! Hi Francis, just thanking you for your blogs. It clarifies everything about working remotely. I sometimes do not have time to read all the newsletter but I filed it in a folder and read a few during my day off and gee, i truly learned a lot. Been working fulltime as a virtual assistant to two clients for more than a year now via oDesk. |
Mar 10, 2013 | It’s great that you learned something from this 🙂 Hi dear anonymous subscriber – don’t be shy, I’m not gonna bite 😉 –Thanks for taking the time to leave a comment and some feedback. I’m thrilled this info is useful to you, because I believe about anyone who uses a computer regularly could profit from this info. Sorry if some newsletters are sent out too often. Don’t feel hurried and take your time reading, absorbing and applying the knowledge. And, most important of all, keep sending me your feedback, be it good or bad – this is the best way for me to learn! |
Jul 08, 2014 | No attachment required I think one of the reasons why there are lots of people working on MTurk is the fact that it does not require workers years of experience in online jobs.It’s fast and easy money. And there’s no attachment between employee and employer. |
An Unethical Job Can Easily Turn Into a Criminal Act. Be Careful!
by Virtual Assistant
(July 13, 2012)
Today I am going to share one of my experiences that is closely connected to the ethics of outsourcing. This is a very interesting experience and I am still not sure about my decision, which I took at that time.
Once, I applied for a job on oDesk in which the employer asked me to post some answers on Yahoo! Answers. Yahoo Answers! is a unique and modern way of sharing your information and experiences where you can ask and answer any question and know the perspective of others from all over the world. In recent times this service is very useful for link-building and for promotion of your web-business.
Coming back to the oDesk job. That employer just wrote in his job description that he just needed someone to research and post material against questions related to his niche. It was a straightforward job for me and as I did this kind of job on a regular basis, therefore I applied for it without any hesitation.
The person interviewed me for a long period and then he hired me for this job on oDesk. After awarding me the contract, he simply mailed me an instruction manual in which he provided step-by-step instructions for this work.
Now its time to discuss the serious part of that job.
The employer was running a website which provides alternate medicines. This is a very profitable online business where you can research alternative medicines against your expensive prescribed medicine at a very low price.
My job was to research some of the keywords (these keywords were mostly related to different diseases and some medical terms) and then I had to suggest cheap alternative medicines in my answers.
Here I had a conflict with my conscience, I researched a further and found out that some of the medicines were lifesaving drugs. How can I suggest someone a lifesaving drug, especially when I know nothing about the prescribed medicine…?
So, keeping in view the whole scenario, I simply denied performing his job without logging any hours. The employer tried to retain me, but I apologized him that I am not an expert to suggest this type of advice to others, therefore I cannot continue this job.
Now here I have two questions:
- From an employer’s point of view: Is it ethical that you hire someone for such sensitive jobs which can take someone’s life?
- From a provider’s point of view: Is it ethical that you deny to work after getting selected and hired for a specific job?
I am not sure which argument is true and which false, but perhaps your comment can help me decide the final verdict.
So dive into the discussion and leave me a comment.
Comments for An Unethical Job Can Easily Turn Into a Criminal Act. Be Careful!
Jul 13, 2012 | interesting – and frightening I would be surprised if posting such a job to an outsourcing company would even be legal. An employer has to take a decision what sort of work he outsources. Any medical job does not fall into this category, in my book. If you as a provider decided to not take the job or this money, your decision was highly ethical. Unfortunately, there probably quickly was someone to replace you for this task. Perhaps it would have been possible to report this job. But I doubt that odesk would have taken any action. |
Jul 22, 2012 | A friendly reminder to new contractors As a contractor, part of our responsibility is to know the detailed description of the job that we are applying for. Don’t be afraid to ask questions or clarifications and don’t ever hesitate to share your thoughts about something that is bothering you. I agree that scenarios like this are inevitable, most especially in the world of freelancing/outsourcing. I actually had the same experience when I applied for a job posting as a chat support (that’s what the job description says), only to find out in the interview that it was for an adult site and I needed to be naked! It was hilarious yet very disappointing. So always be proactive, ask questions and never be afraid to say NO. |
Jul 27, 2012 | Ethics at Odesk – explained based on your experience. Ethics, in my point of view, is a grey area. It differs from person to person in general. What is ethical to someone may not be ethical to others and vise versa. However, in common, there are “unethical activities”, which means anything that causes damage to the public, the environment or other external factors. Coming to the point, your client might have started running the business for various reasons. He might have a motive of promoting alternatives for the less-affordables, might have facilitated a cheap source of research to a target group and so many other good causes. In this ground, he may have had an option of going for a freelancing to cover the cost as a cost effective mechanism. Besides these factors, he should lay an important role in choosing the appropriate candidate for a job of such a risky nature. Hence, should have laid some restrictions in his Job Description on the target group that he would consider hiring. This can be termed as a Careless Act if it had stopped from this point. However, after so many questions with you, his decision to hire you was totally unethical from an employer’s point of view. Because it is inevitable to him that a wrong hire may lead to a risk of unethical behaviour, endangering a person’s life. From a provider’s point of view, there is a distinction drawn to conclude with the decision of denying work after a selection process. It is the sole responsibility of the provider to understand the nature of the job by posing various questions to clients during the selection process. This maybe a troublesome activity under the hood of “Disturbance to opportunity for Earnings”. However, this is very important under ethics. Failing to do so, will result in giving inconvenience to the employer to perform an ineffective selection process. When the provider strived his best to examine whether the job was ethical and fails to realize due to misinterpretation or lack of serious information from employer, it is evident that the denial is said to be purely ethical. This was the experience you had with your job. In my opinion, I would say that it is not ethical to hire someone for a sensitive job of such nature with a mere intention of profit motive. And also would say that it is ethical to deny working once it was realized at any point of time that it would lead to a Criminal Act. |
Dec 13, 2013 | Should you do a job whe you know nothing about it? First, the employer should got someone that knows that field. When you are dealing with people’s lifes, you should tell them about the job, always be upfront when you hire someone and don’t leave them in the cold. |
Jun 22, 2014 | Right decision Ethically, only doctors are allowed to recommend/refer drugs or medicines. And in your case, the employer asked you to post life-saving drugs which is not in your line of duty. You just did a great decision on putting it to a stop. |
Talking About The Morality Of Outsourcing
by Virtual Assistant
(June 19, 2012)
Over the past two days, I and Francis had a detailed discussion about the morality of outsourcing.
Is it ethically fair to outsource your work to other countries?
How would you justify it morally?
The discussion went to an intense mode where we both asked each other totally personal questions (although there was nothing personal and the discussion was meant only for the sake of discussion).
We also discussed the basic realities and personal experiences of our working and living conditions, how much money a freelancer wants to earn as a virtual assistant, what or how much he can buy with this money, or if there’s any risk in hiring someone from a foreign country.
We also discussed about the payment process in detail and talked about the legality of this process, how freelancing companies like Odesk make sure that they transfer funds in a legal way and how they ensure that these processes are following the international money laundering laws?
As a virtual assistant (Provider), honestly speaking I have no regrets working as a freelancer.
In fact, to some extent I am helping the economy of my country. But when I think as an Employer, there are several things that have to be discussed before you outsource your work.
Although I tried to convey my point of view in the best possible way, quoted a lot of personal and general examples and think that I have succeeded in many arguments, still there is always some confusion left in our mind regarding the morality of the outsourcing.
So I think it would be best to have a general discussion regarding this subject and people from all over the world can contribute their point of view and let us know:
How do you think about this sensitive topic?
So, please jump into the discussion and leave a comment.
Comments for Talking About The Morality Of Outsourcing
Jun 19, 2012 | It is a really touchy subject Talking about if outsourcing is right or wrong is difficult anyways. I don’t think there are two people with the exact same point of view about this topic. But in the end, isn’t it the decision between two grown, individual people, the employer and the employee? I always try my best to make the cooperation with a virtual assistant be as much of a win win situation as possible. Anything beyond that feels like it is a little too much to ask, if you want my personal opinon. |
Jun 28, 2012 | thoughts Actually I haven’t given too many thoughts about the MORALTY of outsourcing. 😛 I was sure, that the freelancers wouldn’t do this work, if it wouldn’t be worth it and better paid than other jobs. After all this is a free market. I’ve been traveling a lot and went to Bali once. The money exchange rate is 1 Euro = 11.000 Rupiah. For 11.000 Rupiah I was able to go to a good restaurant and buy myself a dinner with dessert and drinks. In Germany you most of the times don’t even get a lousy scoop of icecream for 1 Euro! But anyway I find it very interesting what you as a freelancer think about all this. I hope to hear more! =) |
Jun 28, 2012 | I have a different point of view I think every business has its own Pros and Cons and it’s up to you how to take it. For example you have a shop near the corner of your home but you do not buy any vegetables from this shop. Instead you prefer to buy it from another shop that fairly has a long distance than this shop because there you find some fresh vegetables at more comparative rates. As you said that you went to Bali for travelling. Is it morally correct that you spend a lot of money on your travelling especially when you are spending this money out of your country? I mean there would be many places within Germany that you could have consider traveling. I think it’s always fair wherever you go for travelling. After all its your money and you have all the rights to spend your money as per your will. In my opinion it’s your right to keep your benefits at top of the priority unless it’s not illegal. Nevertheless, Great discussion to argue! I am loving it 🙂 |
Jun 28, 2012 | These Boots Are Made For Walkin’ I went to NewZealand for a year and kinda stopped at Bali on the way back. =) That now seems like a million years in the past and my point of view has changed a lot since then. Only recently we had a popular vote in my City wether or not our airport needs a third runway. 55% of the people said it doesn’t and so it’s not gonna be built. Instead the City will put the money in the extention of the citys public transport system. I’m grateful for the good public transport system we have in Germany. I will use it after my university graduation to do a morally correct 2-3month travel all over Germany! 😉 I’m so looking forward to that! There’s much in my own country I haven’t seen yet. Actually I think it doesn’t matter whether I spend my money in Germany, Bali or another country. People can need it everywhere. But I do think it matters how we get to all these places on earth we so love to see… If I’d hat the time I’d just walk everywhere. 😛 |
Jun 28, 2012 | A global world – It’s what we make out of it that counts 🙂 Nice discussion, I’m loving it too 🙂 I find it sometimes even hypocritical if someone wants to tell me where to spend my own money. Especially under the argument of morals. If what I’m doing is unethical or immoral, I want to know about this. This is a free blog, and if a freelancer from anywhere wanted to join the discussion and tell me “Outsourcing is frigging bad!” – then he is free to do so! As I see it, I’m building opportunities for two grown up people: my virtual assistant and me. He makes some money to support his studies. More importantly, he grabs the opportunity to learn tons of stuff from me. And I profit from his hard work to get my projects (this website, other stuff) running as smoothly and beautifully as possible. We agreed on the price. What could be wrong about this? |
Jul 22, 2012 | win-win I think there’s nothing wrong with outsourcing. US is the top outsourcing country all over the world and they are really getting a lot of revenue because of the outsourced people. But let’s face it, it’s a win-win situation. Contractors like us really get a very competitive rate compared to what is being offered in our locality. It also creates a positive connection and long term relationship between/among the parties involved. |
Jul 28, 2012 | Outsourcing – what is it all about Outsourcing in General has both Pros and Cons. In the view of an employer, it is a cost effective mechanism to get the things done from experts at a competitive advantage, however it is also prudent to pass sensitive information to the hands of the unknown. Outsourcing can be argued as a cause for unemployment in an economy, by hiring people from foreign countries effects economy in a negative way and strips hundreds to thousands of domestic jobs, especially the skilled and semi-skilled workers. Freelancing, therefore, comes into play, being a form of outsourcing, it creats employment to those that are unemployed on the other hand. Any skilled or unskilled can seek for jobs based on their criteria at freelancing still being very competitive. Due to the development of technology, the world is shrinking day by day leaving less time with more and more work. A physical workplace is considered a burden for an organization when productivity is concerned over the expenditure. Employers are more towards result orientation rather than task based. Therefore, anything that makes the job quicker, easier and cheaper will be more preferrable. The modern research says that traditional jobs are moving towards outsourcing to have a niche market. The first to be on outsourcing being US, now the growth is not only in the USA but also in Europe and Latin America. In the USA hot spots include Hawaii, North Carolina and Tennessee and also rural parts of the USA also experienced a boom. Skilled professionals like manufacturing designers (+241%), architects (+198%) and family attorneys (+179%) are joining the online work community faster than ever with triple-digit increases compared to Q2 last year. Engineering is another job category defying the conventional market with skills like Chemical Engineering (+182%), Electrical Engineering (+126%) and Civil Engineering (+100%) increasing exponentially year over year. This is extracted from a recent newspaper. Therefore, there seemed nothing in the grounds of ethics as Francis highlighted that when both the client and the contractor agree on a contract based on positive terms, both gets rewarded. |
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