Reference no: EM13304634

There are many things to consider when making a move to an offshore call center.  The legal, moral and business implications of a move must be considered before such a move is made.  It can become more of a challenge that it is worth.

The legal ramification to moving a call center offshore deal mostly with the laws of the country that the call center is located but there is also the legal obligation to the displaced workers here. Understanding and following the labor laws of the country the call center is place can help determine the best location.  The minimum wage is one consideration, as well as required working conditions. Working hours must also be considered and may be affected by trade agreements.  Countries that are on the other side of the earth will need workers that work through the night to be available during working hours here.  Workweek hours may be different and holidays may not coincide with the holidays here.  Unemployment compensation may also be different and actually cost more than employees in the U.S. Furthermore the US Workers Adjustment and Retraining Notification Act require that all displaced workers must be given 60 days' notice (Editorial Board, 2011).  All of these things must be considered when choosing a location.

The moral obligation of the company to its employees is simply is it right or wrong to outsource the jobs overseas?  The profits that the company stands to gain make the economic decision easy but the moral and ethical implication of it asks many questions.  Is it the right thing to put US workers out after years of service?  Is it necessary to offshore for the company's future?  Are the low wages that will be paid to offshore workers fair?  The answers can only be found based on the moral beliefs of the one answering them.  I feel that the company should only outsource its functions if absolutely necessary to the survival of the company.  If the workers here are displaced for the mere increased profit of the company then the decision is economically based and not considerate of the morals of the situation. 

The business implication of outsourcing are varied and complicated.  Offshore outsourcing creates challenge both performance and cultural.  The performance of offshore outsourcing has been reported as less than expected.  Many firms that outsource find that productivity is lower than they expected and the need for increased work force.  The cultural differences such as language, religious beliefs, cultural holidays and benefit expectations may also create some unexpected complications to offshore outsourcing.  Some other challenges that may result from outsourcing include the risk of disputes, lawsuits, lock-ins and the loss of knowledge and competence (Herath, Kishore, (2009).  Despite the challenges offshore outsourcing does typically save companies money when they do their homework and make smart decisions.