Ethics in It offshoring

Off-shoring is one type of outsourcing activity and become the most concern of many firms about cutting cost and labour expenses. As given by the former Treasury chief Ken Henry, the key source of productivity growth in the Asian Century is going to be off-shoring or outsourcing (Lane, 2012). However, Bennet (2012) stated that the IT departments across financial markets are feeling the pain as functions are outsourced, off-shored and integrated as lenders focus on costs to offset weak credit growth and higher funding costs. Moreover, when retail and investment banks increase outsourcing of IT functions, there are up to 10,000 jobs lost across the finance sector (Bennet, 2012). It affects not only the IT worker themselves but also to other people, specifically, their families and relatives. This essay will examine advantages as well as disadvantage of the off-shoring. In addition, the banks’ decisions to off-shore IT jobs will be analysed in accordance to shareholder and multi-fiduciary stakeholder theories of the corporation social responsibility. In parallel, Bill Shorten, The Minister for Employment and Work place relations has criticized the banks for off-shoring IT jobs even there has been no suggestion that the government introducing laws prohibiting the banks or other firms from off-shoring jobs. Thus, this essay will also explain why it is unlikely that the banks or firms will self-regulate in the matter of off-shoring jobs; why the government is unlikely to introduce external regulations to prevent the off-shoring of Australian jobs and will draw general conclusions about the external regulation of businesses in a globalised economy.