I have been engaged in a discussion offline about the big wave of outsourcing and the economy. Do you have an issue with companies that outsource to foreign workers? E-Lance, O-desk, etc? 

@jasonwiser I think @trudy has good points. There are times when it simply makes sense for a business. But, when there are potential language barriers, you must be careful to be structured with your requests and your expectations need to be clear, as well as time limits, etc.

Read Tim Ferriss’ The 4-Hour Work Week; it will detail this and how to determine the right choice

@jasonwiser

It sounds more like you’re not asking for the “how do I make it work?” but rather, “is it ethical/OK for me to outsource?”

That’s a tough question for a lot of businesses, especially with so much unemployment. 

I know here in Maine people complain when people outsource to other parts of the country and especially out of the US. I’m sure it’s similar other places w/in the US (and around the world.)

Although we currently don’t outsource internationally, we have in the past, and I’m OK w/that.

I’m able to employee 8 other “Mainers” in part because we outsourced certain work that wasn’t in our core competency or that we didn’t get enough of to hire another employee for.

While I’m not thrilled to see work leaving the country, I know that w/o some outsourcing I wouldn’t have been able to grow my company to the size it is today.

@jasonwiser Outsourcing has gotten a bad rap because of the big mega corporations that are moving essential jobs to foreign markets. Often, it’s not really about leveraging the best talent nor finding the most efficient set-up, but more an effort to keep their earnings artificially high  (ie by lowering their payroll and tax expenses) and thus keep their shareholders and other outside investors happy. (oh, and often their own pockets full)
With small business owners, it’s a totally different story… When it’s done right, the money saved from hiring an overseas virtual assistant or professional can do wonders to a small business’ cash flow and overall health. I’ve worked with several VA’s that were based overseas and I’ve seen it with my own businesses…

That said, if you’re asking if it’s ethical, the answer is it really depends on the intentions of the business seeking to outsource, the availability of a local, qualified workforce, and the real budgetary constraints in question.

For my businesses I keep employment within the U.S. – Some clients do outsource, and that is their decision, as it should be.

Personal business ethics mostly. My client base is largely U.S. commercial entities; wherever their goods or services come from is not my call.

I look in the U.S. when I need help with research or other areas of temporary work. 

My biggest complaint is with the fact that there are no longer any checks and balances as there used to be (think keypunch and verifying). Errors are only caught if someone is laying real human eyes on every word, reference and equation for any given project.  If I have to have someone here doing those checks, I might as well hire that person to do the work.

It’s been some years since I checked any outsourcing places online. What most people might be looking for, I either have in house or don’t need anyhowsen.

I DO think big business could do better. That’s where the money is and regulators have not kept that money (and thus, those jobs) in the U.S. Money makes the world go ’round and when your country is strangling from lack of it (to provide jobs, etc.) you go downhill pretty darn fast.

I can’t resist playing both sides on this. On the one side I think loyalty in business has its place, if there is a good local service provider I think it does feel more right to consider them first.  On the other side I think being protectionist can make your world smaller and as a result you can often miss out on opportunities that may occur simply because you aren’t looking around you.  @adamgottlieb has it spot on when he says that outsourcing has many advantages for small business. Outsourcing revolutionized my travel business and is the only reason I have a writing career. 98% of my clients are international. What I love about outsourcing is that it gets rid of the lazy employee attitude of it’s not my problem. In outsourcing people are much more results oriented. They are more interested in over delivering than under delivering as they realize the importance of the client relationship. Because if they don’t deliver they know they won’t get paid. Now I know not all outsourcee’s are not equal but neither are clients. I’m amazed at the number of companies out there that expect high quality original articles for $1 a piece. It works both ways.  In the end it does come down to finding people you can work with at rates that benefit everyone involved. Outsourcing is a great tool if you know how to use it properly, it’s unethical if you turn it into slave labour to fill your own pocket more. 

I’ve always been a proponent of keeping it local but over the years, we’ve moved offshore except:  on US soil due to federal regulations and supporting the local community.  We always give first crack to the locals.

I managed my husband’s consulting business.  He was adamant in using only local programmers & developers.  We were paying people $350/hr for the work and due to the cost, we had to turn down some prestigious projects such as one with Apple.  Our gross profit on a $500K project was $2600 without any reserve. 

We found that the work was mediocre and the delivery was slow.  It was so frustrating that we hired someone to take over for me.  Now, for his tech work, we send it overseas.  They’re fast, responsive, creative and reasonable. We barely have to manage them. 

For my own company, I hire locally and usually from the local community college instead of the university.  The kids are hard working, eager to learn, and appreciate the opportunity to ramp up into more than they ever expect.  We do use a VA overseas when it comes to research work.  She’s a PhD and doesn’t think that it’s beneath her to do my fact checking. 

The last time I offered an internship as a favor for a client, the student’s parents declined on her behalf because we weren’t prestigious enough to be on her resume. 

The world is global now and we all compete on a global level.  That will not go away but will intensify.  Companies have to adjust to the new revolution and redo their business model.