Is Ethical Offshoring the Key to Sustainable Global Development?

In an era of global connectivity and digitalisation, the concept of offshoring has become a cornerstone of global business strategies, enabling organisations to leverage diverse talent pools and cost-effective solutions. However, when it comes to the ethical dimension of this concept, offshoring can face scepticism and criticism as an ethical way to grow, often due to previous business standards and their prevailing misconceptions. We explain how this new wave of ethical offshoring can be delivered, to achieve effective business growth and global collaboration, at scale.

Low Compensation and Unfair Employee Benefits

Perhaps one of the most concerning conceptions is that all offshoring companies continue to exploit offshore workers and flout labour laws to offer unfairly low wages. However, according to data from the World Economic Forum, offshoring firms typically pay competitive salaries that align with local market rates and industry standards. In fact, a study by the International Labour Organization (ILO) revealed that offshoring has contributed to wage convergence, i.e. addressing inequalities: narrowing the gap between salaries in developed and developing countries and promoting economic inclusivity. Ethical offshorers should always entail a commitment to tackling a Modern Slavery statement, ensuring that offshore employees are compensated commensurate with their skills, experience, and market value.

Decreased Employee Wellbeing Due To Timezone Differences

Time zone disparities can result in offshored employees having to work anti-social hours, often through the night. Research has shown that this style of shift working can increase stress, disrupt sleep cycles, and threaten employee wellbeing. On top of that, having your working hours so disconnected from the rest of your team and company can significantly decrease work satisfaction and productivity. By strategically selecting offshore locations that share similar or overlapping time zones with their client counterparts, organisations can mitigate the negative impact of time zone disparities on employee wellbeing, and ensure teams are more closely aligned.

For example, matching Canadian clients with offshore teams in Colombia, or Australian clients with teams in the Philippines or Vietnam, allows for more harmonious work hours, minimises the need for disruptive night shifts, maximises the time offshore and onshore colleagues can work together, or even get together at annual events like team away days.

Limited Opportunities for Meaningful Work

When it comes to offshoring, people can potentially consider the work offered as ‘second-grade’ jobs, often including mundane or menial tasks. A report by the Global Impact Sourcing Coalition (GISC) highlighted that 67% of offshoring firms actively prioritise creating meaningful and fulfilling work for their offshore employees. From software development and data analytics to creative design, offshoring offers a wide array of engaging and rewarding career paths for talented individuals worldwide.

Lack of Training and Upskilling Opportunities

Where less responsible offshoring companies may have neglected the training and upskilling of their offshore workforce, the shift to remote and hybrid working across all types of employment, onshore or offshore, has worked to diminish this disparity significantly. When offshoring is done properly, investing in your offshore workforce’s talent development and continuous learning is considered as important as any other team. Research by Deloitte Global Outsourcing Survey 2022 shows that 79% of offshoring firms now provide training programs to their employees. Greater availability of onlinecoaching programs and learning platforms ensure continuous upskilling from anywhere, empowering offshore talent to enhance their capabilities and contribute effectively to global organisational goals.

If followed properly, these ethical offshoring practices can create a huge improvement in the way businesses engage with global talent and resources, and can actively address inequalities across the world through decent employment. And by countering these misconceptions through responsible, ethical and positively progressive offshoring, we hold the sector to a greater standard, paving the way for a more inclusive and sustainable approach to global recruitment — one centred around ethical principles, mutual respect, and shared prosperity.


About Sharesource

At Sharesource, we are committed to championing ethical offshoring practices ourselves, influencing progress within the sector as a whole, and partnering with like-minded clients who share our vision and want to grow their teams effectively and ethically.

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