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The mere mention of outsourcing usually triggers some sort of reaction. The proponents of outsourcing argue for the benefits, including cost savings, greater effectiveness, and the unavoidable evolution of industrial economies to service-based economies. The opponents’ argument relies on points such as national security, national pride, lost jobs, and national self-reliance.

The pro and contra arguments have certain validity within particular reasoning. However, the most important reason may not be at the center of the discussion, namely the stakeholders’ interest. Essentially, the question of outsourcing and its moral and ethical implications may be only based on one major factor: stakeholder and their interests.

Once there is a uniform agreement as to who the actual stakeholders are, it is simple to argue that the ethical responsibility of organizations with stakeholders is to create and maintain an environment of constant and maximized profits. This naturally leads to tools such as competitive pricing, which in turn will lead to outsourcing.

Notwithstanding that profitability is at the center of the argument, outsourcing may not be the only solution. There are other ways, including internal investments in tools and education, that may enable internal units of a given company to perform outsourced tasks with greater cost-effectiveness and efficiency.

Ultimately, the greatest challenge is to determine what benefits the stakeholders.

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