Outsourcing at Any Cost Essay

Galaxywire. meshing decided to choose its central fixture in unripened Fork, because the city development outicials clefted a 300,000 low-interest loan for employee training, bid 50 percent tax abatement for the original 10 age and construct a new 2. 3 one thousand thousand dollar indirect building for day c be and executive suites. Galaxywire. shekels flowerpot sustain the city solve high unemployment valuate, because they planned to hire 3000 employees. CEO promised they entrust stay and treat their employees as a family to proceed with increasing distrustful of large corporations in topical anesthetic.Few years later, the outsourcing trend becomes popular in the United States of America, especially, most of Galaxywires competitors were already outsourcing. Therefore, top management started to realize moving to India in beau monde to nevertheless at least 10 million a year. Galaxywire. net let its employees know immediately of its invention to close the home off ice. It provided severance packages of a months large sacrifice and extended health insurance coverage for five months. except none of the top executives would be laid off and dumb draw paid high fees.At that time, the unemployment rate is still at 10 percent, so the city tried to find stem to denounce Galaxywire. net stay and still recoup most of the money it hoped to save by moving. The city does non want to lose its largest employers, so they proposed a deal that would save 7 million dollar in the first year, 8 million dollar the flash, 9 million dollar yearly thenceforth and extended the 60 percent tax abatement for another decade. Also, the employees hold to a 15 percent pay cut.However, the connection was not concerned in the first offer and still would not stay. So the employees concur to another 5 percent pay cut and other concessions. In addition, the city increased the tax reduction by another 5 percent. The second offer totally assistants the company save 1 0 million dollar in the first year, 11 million dollar the near and 12 million dollar year thereafter. The second offer is actually attractive, and how should the Galaxywire. net make a decision? From my own perspective, the ethical depicted object in this case is that Galaxywire. et is confronting the deterrent example challenge, they are in moral dilemma, because their realise against needs of employees and the city regimen. If they choose to stay, it proves they follow through the commitment.But if they choose to operate to India, it proves they break the promise and dishonest. There are two issues for Galaxywire. net to make decision. First, I suggest that Galaxywire. net should choose to stay in Green Fork and accept the first offer. The first solution has many benefits for Galaxywire. et, the reasons as follow first, if the company chooses to stay in Green Fork and fulfill the commitment, it would increase employee loyalty and enhance the relationship with local anae sthetic judicature. Second, it is hard to legal community the Indian employees go out be equal for their positions. But there are many skilled and dedicated employees in Green Fork. It is not requisite to take risk to move abroad. Third, the company should choose the first offer rather the second offer, because the second offer will bring the bang-up burden on local governments cipher and the employees will become inactive cod to lower salaries.If the company chooses the first offer, the employees and local government will feel grateful to the company because it proves that company still care about the interests of employees and local government. According to the Libertarian theory, the company did not gift individual interests and rights to satisfy the companys interest right and interests, we shag say what the company did is scantily and moral. Although the company sacrificed some interests, they guaranteed the employees and local governments interests.The goodwill of Galaxywire. et will be better and better due to choosing the first solution. Second, I suggest that Galaxywire. net should move to India and give up both the first and the second offer. Also, the company should provide the employees who will be laid off a chance to purchase original uncover stock as compensation. There are many benefits if the Galaxywire. net chooses the second solution, the reasons as follow first, the company nominate reduce the cost and save around 10 million dollar a year, because salaries expense is largest wasting disease of each company.Although the second offer can help the company redeeming(a) much than, the local government may not be able to concede it in few years later, because the local governments reckon is limited, and it is unfair if too much budget goes to Galaxywire. net. The local government can have more budget to support other developing or small companies in local, if the scale of the companies become bigger and bigger, the high unem ployment rate problem can be solved in the long run, because big companies need more qualified employees.Expending too much budget to keep a largest company is not a wise choice. Also, the government can set up funding to training local bulk to be qualified employees. Second, issuing original stock as compensation is a good way to solve breaking the promise. The employees can depict benefits from this decision, because they will earn more income per year and feel thankful to the company, and it proves that the company does not put them away the employees still can rely on company to make money.The employees who will be laid off are used to work at the largest company, and it can prove they are qualified to their position, so it is not hard to find a new caper in local or Chicago. Also, the qualified employees can help the local developing or small companies develop faster. The unemployment rate seems not to be worsening if the company moves to India. In addition, the company wil l have more money to invest in more profitable projects in order to make more profit. When the company gains more and more revenue, they can pay dividends to their stockholders.The second solution relieves the burden of governmental budgeting, makes employees have more income, and help the company reduce the cost. From the view of Utilitarian theory, the company, the government and the employees reap great benefits of the second solution, and it means the greatest good for the greatest number. Therefore, the second solution can be just and moral theoretically. As far as I am concerned, the second solution is more appealing than the first solution. The reason is that the second solution can distribute benefits to every member.Galaxywire. net can reduce the cost and save 10 million dollar, retentivity stock can help employees who will be laid off earn considerable returns, and local government will not leave out more and more to keep the company stay anymore instead giving money to someone who needs it. It seems that the company move to India unequal and against the moral obligation, but according to Rawls, it is moral and just, because unequal distribution of power, opportunities, income or wealth is not just unless everyone benefits.Also, according to Utilitarian theory, everyone will contented due to the benefits he or she received, so the second solution can gain the good consequence. In addition, the second solution helps limiting the fictional character of government to guarantee the individual1rights. If the company accepts one of two offers, more and more resources will move to the company, it would make other companies cannot have right to achieve these resources. The government plays an important role of social resources distribution. Therefore, the second solution is moral and just in Libertarian theory.The first solution is good but not the best, so it should be rejected, because the Galaxywire. net still does not receive the beau ideal cost r eduction. Also, the local government still needs to expend more to keep company stay, and other companies will receive less support. In addition, the employees will earn less than before, it will make them inactive. Although it is moral and just in Libertarian theory, the company sacrifice own interest to other members interests, it cannot take up to a good consequence, because the benefits cannot make each member satisfied. Therefore, the first solution is not perfect due to the view of Utilitarian theory.